(Reuters) -Novo Nordisk has cut its cell therapy division, which has been trying to find a cure for type 1 diabetes, Bloomberg News reported on Friday.
Nearly all of the division’s 250 employees will be laid off, the report said, citing Danish newspaper Borsen.
Novo Nordisk did not immediately respond to a Reuters request for comment.
The move is part of CEO Mike Doustdar’s plan to reduce headcount by 11% and reallocate resources to high-priority areas such as obesity and diabetes treatments, the Bloomberg report said.
Advertisement
Advertisement
The Danish drugmaker is seeking partners to continue development of its cell therapy programs, the report added.
On Thursday, Novo said it would buy U.S.-based Akero Therapeutics for up to $5.2 billion to gain access to a promising liver disease drug candidate, in the first major deal by the Danish drugmaker’s new CEO to spur growth.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber and Alan Barona)
