We’re studying about Novo layoffs, crackdown on DTC drug advertisements

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Novo Nordisk, beneath new management and in want of a lift, plans to trim 9,000 jobs — roughly 11% of its workforce — because it seeks to remake itself for a extra aggressive weight problems drug market, STAT tells us. The cuts are designed to avoid wasting the corporate $1.26 billion a 12 months by the tip of 2026, and are a part of what was described as a broader transformation that can simplify its group, velocity determination making, and push extra sources towards constructing development in its diabetes and weight problems companies. Roughly 5,000 of the job losses will likely be in Denmark. Novo has greater than 78,000 staff. Citing restructuring prices, Novo lowered its working revenue development for the 12 months to 4% to 10% at fixed alternate charges. The corporate has lowered its outlook a number of instances this 12 months. Novo has been a pacesetter within the booming GLP-1 marketplace for weight problems and diabetes medicine, but in addition struggled to fabricate sufficient provide to fulfill large demand. Extra just lately, Novo has seen rival Eli Lilly surge forward with its medication Zepbound within the U.S. weight problems market, and has hit stumbles with its pipeline because it seeks to develop next-generation weight reduction medicine.

President Trump directed U.S. Well being and Human Providers Secretary Robert F. Kennedy Jr. to crack down on deceptive direct-to-consumer drug ads, STAT notes. On the identical time, the U.S. Meals and Drug Administration mentioned it could start rulemaking to shut what the company referred to as a regulatory “loophole” that enables drug corporations to direct sufferers to an exterior supply as a substitute of itemizing security dangers in ads. The FDA additionally mentioned it was sending 1000’s of warning letters to drug corporations at present working “misleading” advertisements, however didn’t share which corporations. The announcement provided few particulars on how the federal government would guarantee “clear” drug promoting going ahead. The company mentioned it can “aggressively deploy its accessible enforcement instruments,” and famous that it’s using AI to evaluate extra drug advertisements. Kennedy has referred to as to ban DTC drug advertisements fully, saying they mislead sufferers and don’t enhance well being. FDA commissioner Marty Makary has additionally criticized the advertisements, although he has shied away from saying the company would ban them. The FDA doesn’t have specific authority to do that, and main restrictions would face vital authorized challenges.

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