Novo Nordisk says it
/ News/ AP
Within the price of the price of weight loss
The Danish Pharmaceutical Company Novo Nordisk, manufacturer of weight loss drugs, said Wednesday that it is reducing 9,000 jobs, or 11% of its workforce, in the midst of greater competition for medications for obesity.
The company said it will reduce around 5,000 jobs in Denmark, although it did not reveal where the remaining 4,000 reductions will be located. Novo Nordisk also manufactures Ozempic, a diabetes medicine that can also cause weight loss.
Rationalization would save $ 1.25 billion by the end of 2026, savings that will be redirected to diabetes and obesity, including research and development, the company said. The company said the reductions are necessary due to a “more dynamic and driven by the consumer,” which has resulted in slower growth.
The company said that the implementation of employment cuts would begin immediately and that it would inform the employees affected in the coming months depending on local work rules. The company, based in Bagsvaerd on the outskirts of Copenhagen, has 78,400 workers.
“Our markets are evolving, particularly in obesity, since it has become more competitive and driven by the consumer,” said President and CEO Mike Doustdar in the statement. “Our company must also evolve. This means instilling a greater culture based on performance, displaying our resources more and more effectively, and prioritizing the investment where it will have the greatest impact, behind our main therapy areas.”
Novo Nordisk’s shares increased 58 cents, or 1.1%, to $ 54.88 in the market prior to the market.
Doustdar became CEO in May after its predecessor, Lars Fruerd Jorgensen, left the company after the price of the shares fell and, when the company faced the competition of the medicines to lose weight of the competitor Eli Lilly.
The actions had shot after the introduction of Wegovy and Ozempic, which are based on the same basic ingredient, the semaglutida.
In the peak, the company’s market capitalization, or the combined price of all its shares, exceeded the Annual Gross Denmark and made it the most valuable company in Europe.
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