Pharmaceutical Industry Update: Novartis Cuts Jobs, Novo's Diabetes Drug Advances, and More

Novartis Restructures Swiss Manufacturing, Cutting 550 Jobs

Novartis has announced significant changes to its Swiss manufacturing facilities, resulting in the reduction of 550 employees by the end of 2027. The company plans to invest $26 million in its Stein site, focusing on sterile dosage forms and personalized cell therapies. Simultaneously, Novartis will discontinue the production of pills, capsules, and packaging of sterile products at this location.

In Schweizerhalle, Novartis is set to expand its RNA medicine capabilities with an $80 million investment, creating 80 new jobs by the end of 2028. This move reflects the company's strategic shift towards advanced therapies and streamlined production processes.

Novo Nordisk's Amycretin Shows Promise in Phase 2 Diabetes Trial

Novo Nordisk has reported positive results from a Phase 2 trial of amycretin, a combination metabolic treatment for diabetes. The 36-week study, involving 448 participants with uncontrolled blood sugar, tested both once-weekly subcutaneous and once-daily oral formulations.

Key findings include:

• Subcutaneous amycretin reduced blood sugar by up to 1.8 percentage points from a mean of 7.8% at trial entry.
• The oral form lowered blood sugar by up to 1.5 percentage points from a mean of 8% at trial entry.
• Weight reduction was observed, with the subcutaneous form achieving up to 14.5% reduction and the oral form up to 10.1% reduction.

Based on these promising results, Novo Nordisk plans to initiate a Phase 3 program for amycretin in adults with type 2 diabetes next year.

Regulatory Updates and Clinical Developments

The FDA has extended its review deadline for Ascendis Pharma's TransCon CNP, a treatment for achondroplasia, by three months to February 28. The extension is due to new information on post-marketing requirements, which the agency deemed substantial enough to warrant additional review time.

In other news, Arrowhead Pharmaceuticals has earned a $200 million milestone payment from Sarepta Therapeutics, related to their collaboration on RNA interference therapies. This payment follows a previous $100 million received earlier this year, highlighting the progress in their joint development efforts.

Johnson & Johnson faced a setback as its experimental Alzheimer's drug, posdienmab, failed in a mid-stage "proof-of-concept" study. The Autonomy trial, which enrolled 523 participants, was discontinued after a scheduled data review showed no significant slowing of patient decline compared to placebo.