Novo Nordisk Pulls Plug on Cell Therapy in $1.3B Restructuring Push

In a major shift under new CEO Maziar Mike Doustdar, Novo Nordisk has announced the complete closure of its cell therapy operations, a move that will eliminate nearly all 250 positions within the division and mark the end of its long-running efforts to develop regenerative treatments for Type 1 diabetes, Parkinson’s disease, and heart failure.

A company spokesperson confirmed that “we have decided to discontinue our cell therapy R&D efforts,” adding that Novo Nordisk is “in the process of identifying partners with the right capabilities and manufacturing capacity to further develop our innovations.”

“Out of respect for the employees involved, we will not share additional details about individual sites or areas,” the spokesperson said.

The decision, first reported by Danish outlet Børsen, comes as part of Doustdar’s broader restructuring campaign to streamline operations and redirect investment into Novo’s highest-growth areas - particularly obesity and diabetes, where demand for GLP-1 drugs such as Wegovy and Ozempic continues to surge globally.

The plan is expected to generate annual savings of roughly $1.3 billion by the end of 2026 through a global headcount reduction of about 9,000 employees, or 11% of the total workforce.

“As part of this change, we are assessing all business areas and regions to simplify structures, reduce duplication and sharpen focus,” the spokesperson said.

The discontinuation marks a symbolic end to Novo’s decade-long ambitions in cell therapy, once a promising avenue for achieving functional cures for chronic diseases. Novo had invested heavily in stem cell–based programs targeting insulin-producing beta cell replacement for Type 1 diabetes, alongside exploratory work in Parkinson’s disease and chronic heart failure.

But recent recalibration appears to prioritise near-term commercial impact over longer-horizon regenerative bets. Less than two weeks ago, Novo terminated a $598 million cell therapy collaboration in cardiovascular disease, signalling that the retreat from the modality was already underway.

For observers, the exit underscores the mounting financial and manufacturing challenges that have constrained the scalability of cell therapies beyond oncology. Takeda Pharmaceuticals announced a similar withdrawal from cell therapy R&D just last week, citing similar operational hurdles.

Novo’s retrenchment in cell therapy coincides with an aggressive expansion into other high-value therapeutic areas. The company revealed plans to acquire U.S.-based Akero Therapeutics for up to $5.2 billion, gaining control of its FGF21 analogue, a promising liver disease drug currently in phase 3 development. Data from the pivotal program are expected in the first half of 2026.

Analysts view the Akero acquisition as a continuation of Novo’s strategy to consolidate its leadership in metabolic and endocrine disorders, leveraging its GLP-1 franchise to diversify into adjacent spaces such as NASH and broader cardiometabolic disease.

For pharmaceutical professionals, the move represents a growing industry consensus: capital-intensive modalities like cell therapy may be taking a back seat to more commercially viable biologics and small molecules in the current funding climate.

With the company’s weight-loss and diabetes drugs continuing to dominate global demand, and supply chains stretched to meet that demand, Novo's latest restructuring signals a clear focus on efficiency, profitability, and market leadership in metabolic health.