Novo Nordisk has cut several programs the day before its new CEO begins.
The pipeline pruning could simply be a cost-cutting exercise, and arguably a necessary one following the company’s
profit warning
last week. But with some of the terminated assets being me-too products, it might also be an early glimmer of a strategic move toward more innovative research under
incoming CEO
Maziar Mike Doustdar.
Novo culled a GLP-1/GIP agonist despite its success in a Phase 2 obesity trial. The candidate, NNC0519-0130, shares a mechanism with Eli Lilly’s obesity shot Zepbound, which is outselling Novo’s Wegovy in the US. Novo said this decision was based on “portfolio considerations,”
according
to its second-quarter announcement Wednesday.
Another obesity asset was also shelved, partly because of its pharmacokinetics. Novo got hold of the CB1 blocker INV-347 through its
purchase of Inversago Pharma
for more than $1 billion in 2023. Another CB1 from Inversago, known as monlunabant,
disappointed
in Phase 2 last year but remains in development by Novo.
The Danish company also took a scythe to its FGF21 analog zalfermin following its failure in a Phase 2 MASH study. FGF21s are being developed by such companies as Akero Therapeutics, 89bio and GSK, and these have all posted positive mid-stage data. However, zalfermin remains in development at Novo in type 1 diabetes, and the company is beginning an “exploratory” Phase 1 study testing the shot with and without semaglutide.
An antisense product called CDR132L was also abandoned following a Phase 2 miss in patients with reduced left ventricular ejection fraction after myocardial infarction. Novo kicked off two Phase 2 trials of CDR132L in chronic heart failure instead. The asset was part of Novo’s acquisition of
Cardior Pharmaceuticals
in 2024.
Separately, a dyslipidemia product called ANGPTL3i was discontinued in Phase 1 on portfolio prioritization.
“We only advance pipeline candidates with differentiated clinical profiles that we believe can ultimately make a meaningful difference for patients with chronic diseases,” a Novo Nordisk spokesperson told
Endpoints News
.
Jefferies analysts wrote Wednesday that “there seems to be a larger R&D clean-out than usual but we do not know if this reflects a strategic re-assessment or just coincidence.”
Regardless of the rationale, with these assets out of the way, Doustdar has strategic decisions to make.
A shift away from me-too products like the GLP-1/GIP and the FGF21 would likely be welcomed by investors. Novo has always played to its cardiometabolic strengths, and a shift into other disease areas would be a surprise, the ongoing trial of semaglutide in Alzheimer’s disease notwithstanding.
Deals to refill the pipeline might be in the cards, though the disappointing outcomes with assets from the Inversago and Cardior deals suggest that more discernment in the choice of targets might be welcome.
“When it comes to R&D, we are committed to driving innovation across our core therapy areas and mak[ing] significant investments to advance our internal R&D pipeline, but also to complement these activities with external innovation through business development activities,” the spokesperson said.
“We look at the full spectrum of business development from early research agreements to late-stage assets. We will continue to do so, to keep providing improved treatment options for patients,” they added.
Novo said its Q2 sales were up 13% from the same time last year, reaching 76.9 billion Danish krone ($11.9 billion). Its net profit climbed 32% year-on-year to DKK 26.5 billion ($4.1 billion). However, its share of the US obesity market has slipped as Lilly gains ground and compounders continue to take a chunk out of Novo’s customer base.
The company filed 14 new lawsuits on Tuesday seeking to stop compounders,
alleging
that their activities are illegal, and steer patients toward “unapproved knockoff drugs under the false guise of personalization.”
Editor’s note: This article was updated to correct the quarterly earnings figures.
