Novo Nordisk Restructures R&D, Abandons Oncology and Early-Stage MASH Programs

Novo Nordisk, the Danish pharmaceutical giant, has announced a significant restructuring of its research and development pipeline, resulting in the discontinuation of several early-stage programs and a renewed focus on its core strengths. The company's third-quarter earnings report revealed a 9 billion Danish kroner ($1.4 billion) impact from this strategic shift, which includes substantial workforce reductions and the closure of its cell therapy R&D division.

Oncology and MASH Programs Discontinued

In a move that signals a departure from its previous diversification efforts, Novo Nordisk has decided to halt its nascent oncology research. The company has abandoned two GalXC-derived lipid conjugates targeting PD-L1 and STAT3, effectively ending its pursuit of cancer therapies.

Additionally, Novo Nordisk is terminating two phase 1 siRNA molecules for metabolic dysfunction-associated steatohepatitis (MASH). These include NN-6581, which targeted the mitochondrial amidoxime reducing component 1 (MARC1) protein as a monthly subcutaneous treatment, and NN6582, aimed at liver X receptor alpha. Despite these cuts, the company maintains a strong presence in the MASH market with its recently expanded blockbuster drug Wegovy, now approved for adults with noncirrhotic MASH and moderate to advanced fibrosis.

Refocusing on Core Competencies

CEO Mike Doustdar, who assumed leadership in August, explained the rationale behind these changes: "In the past, we spread resources into areas far from our core, like stem cell research for Parkinson's and treatments for heart failure that require different expertise. To maximize patient impact and value creation, during this last quarter we have discontinued several non-core assets and redirected resources to areas aligned with our strength."

This refocusing extends beyond oncology and MASH. Novo Nordisk has also ceased development of NN4004, an RNA-based oligonucleotide that was in phase 1 trials as a subcutaneous treatment for gout. The company hinted at further portfolio changes, stating that "a number of changes to the early-stage projects will also be implemented."

Implications for Rare Disease and Partnerships

While Novo Nordisk is narrowing its focus, the company emphasized that its "strategic focus within rare disease remains unchanged." This suggests that ongoing rare disease programs will continue to receive support and resources.

Furthermore, the pharmaceutical giant has not ruled out the possibility of collaborations, noting that it "may pursue partnerships for some of the above projects." This approach could allow Novo Nordisk to maintain a stake in promising research areas without directly managing the programs.