Novo Nordisk reveals details about its R&D transformation

The job cuts will affect all R&D divisions. Then again, the company plans to establish a new business development unit in Cambridge (US) and four new biotech-like research centers that will expand the firm’s reach in chronic disease drug development, especially in priority fields like translational cardio-metabolic research and stem cell as well as gene therapy research. Hence, the strategy puts both core and new therapy areas in focus.

The four Transformational Research Units will pursue novel treatment modalities and platform technologies. The biotech-like units based in Denmark (2x), the United States and the UK will operate as satellites of Novo Nordisk’s central R&D function. These units will be established in 2018 with the Novo Nordisk Research Centre Oxford already open. Here, 100 researchers will focus on type 2 diabetes and cardiometabolic conditions that accompany the disease. Novo Nordisk will invest about US$150m at the center over 10 years.

While some employees will be laid off, most people will face new challenges as the Danish company plans to shuffle positions and projects meaning relocations within the organization.

Novo Nordisk will also considerably increase its investments in automation and digital capabilities including machine learning and artificial intelligence in lead molecule selection and development. To increase the efficiency of the R&D organization, the company will prioritize combining laboratory infrastructure and IT systems. The new Business Development unit in Cambridge shall help Novo Nordisk to identify new therapeutic approaches based on external collaborations. 

Novo Nordisk employs about 42,000 people. Encountering a challenging competitive environment, the firm previously cut its workforce by 1,000 employees in 2016 and 185 more in late 2017.