Novo Nordisk Restructures U.S. Obesity Drug Team Amid Global Job Cuts.

Novo Nordisk, a Danish pharmaceutical company, has disbanded its U.S.-based obesity and diabetes education team, known as the cardiometabolic educators, as part of its global restructuring plan to eliminate 9,000 jobs worldwide, including 5,000 positions in Denmark. The move comes amid increasing competition and a loss of market share to rival Eli Lilly. No financial details regarding the U.S. layoffs have been disclosed.

Novo Nordisk, a leading Danish pharmaceutical company, has announced the disbandment of its U.S.-based obesity and diabetes education team, known as the cardiometabolic educators. This move is part of a broader restructuring plan that aims to eliminate 9,000 jobs globally, including 5,000 positions in Denmark. The decision comes amidst increasing competition and a loss of market share to rival Eli Lilly.

The team, which was part of Novo Nordisk's commercial division, included several hundred staff. According to sources close to the company, the team was informed last week that their roles would be terminated. Affected employees were told to cease work this month but will be paid until the end of the year. The specific layoffs had not been previously reported, and the company has not detailed the locations or business divisions where jobs are being eliminated.

The restructuring has been initially welcomed by investors, helping boost the firm's shares after it lost its dominance in the U.S. market for weight loss drugs to Eli Lilly. Novo Nordisk has lost over $400 billion in market capitalization since the middle of last year, following profit warnings and management change.

The move to disband the education team is seen as a strategic shift by Novo Nordisk to streamline operations and regain market ground. The company has been under pressure due to intense competition in the GLP-1 receptor agonists market, which includes drugs like Wegovy. The global market for these drugs is experiencing a period of intense competition and price pressure, driving operational efficiencies among leading manufacturers.

One source noted that "Lilly does not have an education team and Novo has decided it doesn't need one," indicating a strategic realignment in how the company approaches market education and awareness. Pharmaceutical companies often deploy such teams for "disease state education" to raise awareness of medical conditions ahead of product launches.

The restructuring plan, led by new CEO Maziar Mike Doustdar, is expected to have significant implications for the company's operational and financial landscape. As Novo Nordisk continues to navigate the competitive pharmaceutical market, investors and analysts will closely monitor the impact of these changes on the company's performance and market position.