Thread regarding Novo Nordisk A/S layoffs

2% of the global workforce to be laid off by Novo Nordisk (Mostly Denmark)

Here is the detail on the NN layoffs - you can see more at the link provided below:

Novo Nordisk A/S plans to trim about 1,000 jobs, or 2 percent of the workforce at the world’s biggest maker of insulin, to cut costs as it faces increasing competition and resistance to high prices for diabetes products in the U.S.

Most cuts will be in research and development units and staff functions at its headquarters, as well as in the global commercial organization, the Bagsvaerd, Denmark-based company said in a statement on Thursday. The headcount reduction is part of a broader effort to pare expenses.

The move underscores the increasingly difficult operating environment in the U.S., Novo’s largest market, as payers become more selective about the drugs included in coverage plans for their clients and cheaper copycat medicines force the company to cut prices or lose ground to rivals. The pricing uncertainty is likely to extend into 2018, according to Chief Executive Officer Lars Rebien Soerensen.

Novo, which last month acknowledged having lost a “sizable” contract for its top-selling insulin NovoLog, has started a process to decide whether to proceed with development of certain drugs, he said in an interview with Bloomberg TV’s Guy Johnson on Thursday.

A blurb by the spokesman:

“The next line of products have to have an even greater height of innovation, which means those that do not have that height of innovation will have to be culled,’’ Soerensen said. “Otherwise, it’s going to be difficult for us to get reimbursement for our drugs. Me-too or me-better drugs will not be good enough in the future and hence we need to prioritize.”

http://www.bloomberg.com/news/articles/2016-09-29/novo-nordisk-to-cut-1-000-jobs-to-battle-diabetes-competition

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Post ID: @OP+JH0TRku

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This is true and it's already happening

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Post ID: @ujem+JH0TRku

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