Novo Nordisk will discontinue its research and development activities within inflammatory disorders while increasing its efforts within diabetes prevention and treatment, obesity, and diabetes complications. The decision to discontinue all R&D within inflammatory disorders follows a review of Novo Nordisk’s strategic position in the therapeutic area after the recently announced discontinuation of the company’s most advanced compound, anti-IL 20 for the treatment of rheumatoid arthritis.

The decision will directly impact approximately 400 employees. The company currently estimates that it will be possible to offer other positions within the company to more than half of the affected employees The company has initiated negotiations with the relevant local unions regarding redundancy plans.

The company expects to incur a non-recurring cost of approximately 700 million Danish kroner ($124 million), of which 400 million Danish kroner ($71 million) relates to impairment of intangible assets, and around 300 million Danish kroner ($53 million ) relates to other exit costs, such as project closures and severance payments.

Novo Nordisk expects that all ongoing activities within inflammatory disorders will be finalized within the coming six months. After closure of the clinical trials, patients will be followed in accordance with the protocol and further treatment will be the responsibility of their doctors and according to local practices.

Source: Novo Nordisk