- After discontinuing development of its anti-IL-20 therapy for rheumatoid arthritis, Novo has decided to abandon research and development in the entire inflammatory therapeutics field.
- All activities related to inflammatory disorders R&D will cease within six months.
- R&D activity in the core area of diabetes will be increased and expanded.
As the top producer of insulin the world, Novo wants to focus its research and development efforts on remaining unmet medical needs in diabetes therapeutics, including prevention and obesity and diabetes complications. One of the company's most notable research goals is developing an insulin pill.
With respect to closing out development activities related to inflammatory disorders, Novo will take a one-time, non-recurring charge of approximately $124 million. This includes costs related to project closures and severance payments.
Novo is focused on increasing that market for its diabetes drugs from 23 million people as of 2012 to 40 million people by 2020. Novo is currently the most valuable company in the Nordic region based on market cap, and analysts have rated Novo’s stock a ‘buy.’ Look for updated financial guidance to come from the company on October 30.