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Novo Nordisk Shakes Up R&D Strategy To Cope With US Pricing Pressures

 
• By Lucie Ellis-Taitt

Increasing competition and pricing pressures in the US, have led Novo Nordisk to halve its profit growth expectations for 2017. In response, the diabetes drug developer plans to double-down on R&D efforts, expand into new therapy areas and seek external deals for early-stage assets to bulk up its pipeline.

Although third quarter EPS beat expectations due to good cost control, Novo Nordisk AS saw its stock price plummet to its lowest figure for the last 14 years on Oct. 28, after the firm nudged down 2016 guidance, issued weaker-than-expected guidance for 2017 and also downgraded long-term growth targets.

For the third quarter, Novo Nordisk reported an operating profit of DKK12.42bn ($1.82bn), in line with expectations. Revenue rose 4% to DKK27.54bn slightly below the DKK27.95bn estimated by analysts

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Switzerland Biopharma To Stay Strong Despite More Cash Going To US And China

 
• By Kevin Grogan

The sector is continuing to show resilience despite financial and market challenges.

Finance Watch: Unity Lays Off All Employees As It Evaluates Alternatives

 
• By Mandy Jackson

Restructuring Edition: Unity unveiled more Phase IIb data for lead asset UBX1325 along with plans to shed its workforce while seeking a partner for it and other drugs. Also, Ono is consolidating US employees at one site, Entrada is cutting its workforce by 20% and other recent strategic shifts.

Finance Watch: Biohaven Gains Up To $600m In Fresh Capital

 
• By Mandy Jackson

Public Company Edition: Biohaven secured $250m up front from Oberland Capital to support its future US troriluzole launch after pulling its EU filing. Also, Procaps arranged $130m in private equity and Rezolute grossed $96.9m in a rare follow-on offering, among other financings.

Scrip M&A Podcast: Will FDA Staff Cuts Impact Biopharma Dealmaking?

 
• By Joseph Haas

Attorneys Andrew Goodman and Alan Minsk, as well as Naya CEO Daniel Teper, discussed the ramifications of US FDA staff cuts on M&A activity with Scrip senior writer Joseph Haas.

More from Business

Copycats Compound Novo’s Wegovy Growth Problems

 
• By Andrew McConaghie

The US FDA has ordered compounders of the Danish firm's obesity drug semaglutide to shut up shop later this month, but competition from Eli Lilly is only increasing.

Stock Watch: Market Optimism Outshines Q1 Currency And Tariff Woes

 
• By Andy Smith

The weak US dollar helped some companies reporting first-quarter results and hindered others reporting in stronger currencies. But even the impacts of currencies and Medicare modernization on first-quarter revenues were overlooked when an end to the trade wars seemed possible.

Quick Listen: Scrip’s Five Must-Know Things

 
• By Ian Haydock

In this week's episode: AstraZeneca CEO cautions Europe; Pfizer CEO optimistic on US tariffs, pricing; Merck & Co reassures on pipeline; Merck KGaA buys SpringWorks; and Akeso explains ivonescimab overall survival data.