Novo cuts 108 more US jobs days after a $2.6bn deal for a pill never tested in humans
The Plainsboro notice, effective 31 December, lands inside a workforce down about 13,000 in a year and a company back to writing billion-dollar licensing checks. The same week in Milan, Lilly posted 23.3% weight loss and a comparison aimed at Wegovy's top dose.
Vincent Jiang · 3 min read
A second round at Plainsboro
Novo has told New Jersey it will cut 108 jobs at its US headquarters in Plainsboro, effective 31 December, as it redesigns its US sales organization 1. The same campus lost 263 positions in 2025 under the restructuring announced that September 2.
This round is smaller; the company it lands on is far thinner. At a 21 September Capital Markets Day, Novo said about 13,000 people had left in a year, 9,000 from the restructuring and 4,000 more from attrition, retirements and unfilled roles, leaving about 66,000–67,000 staff 23. The last 4,000 are churn, the company insists, not a second wave of cuts 2.
The savings went to Shanghai and Copenhagen
The 2025 restructuring promised DKK 8bn, about $1.3bn, in annualized savings by the end of 2026 2. At the strategy day, Novo said it had already banked more than DKK 10bn ($1.53bn) for R&D, growth brands and manufacturing right-sizing 3.
The week before the event came a deal worth up to $1.4bn with Copenhagen's Orbis Medicines 3. Then, on 29 September, up to $2.6bn for Hengrui's HRS-1596, a once-weekly oral GLP-1/GIP pill: $300m upfront, Greater China rights excluded, closing in the fourth quarter 4. Hengrui banks its check at closing; Novo banks a molecule that has never dosed a human, carrying a reported 2029–2031 launch window 45.
The savings and the week's checks are the same size: $1.53bn banked, up to $4bn committed
- USD billions
- Estimate
Data
| USD billions | |
|---|---|
| Savings promised (estimate) | $1.3B |
| Savings banked | $1.53B |
| Orbis deal, up to (estimate) | $1.4B |
| Hengrui deal, up to (estimate) | $2.6B |
No disclosure ties the checks to the cuts. The stock still fell 8% on the day 3.
Milan: Lilly brought phase 2b, Novo brought switch data
At the European diabetes meeting in Milan, Eli Lilly's EloraTZP stripped up to 23.3% of body weight over 48 weeks in 367 patients, against 14.8% for tirzepatide alone, with discontinuation rates of 10.8–27.0% versus 2.9% 6. Lilly also published an indirect comparison crediting Zepbound 15 mg with 4.5% more weight loss than Wegovy HD at 72 weeks; under its stricter efficacy analysis the edge was 1.8% and not statistically significant 7.
Novo's research chief Martin Holst Lange waved it off: "You have to be able to back it up with data" 8. Novo's best Milan number was 4.1%, the further weight lost over three months by 194 patients of telehealth platform Ro switching from injectables to the Wegovy pill 9.
Separate studies, not head-to-head: Lilly's phase 2b combo at 23.3%, Novo's 3-month switch data at 4.1%
Data
| Value | |
|---|---|
| EloraTZP combo, 48-wk phase 2b | 23.3% |
| Tirzepatide 15 mg, 48-wk phase 2b | 14.8% |
| Eloralintide alone, 48-wk phase 2b | 12.3% |
| Wegovy pill after injectables, 3-mo real world | 4.1% |
The scoreboard still favors Lilly
NVO trades more than 70% below its peak 9. Orals are roughly a third of US obesity prescriptions, and Novo writes more than 80% of the new ones 9. The scoreboard still favors Lilly, whose GLP-1 sales ran $27.6bn against Novo's $15.7bn in the first half 3.
Next readings: Lilly starts EloraTZP phase 3 this quarter 6, Novo launches CagriSema next year, and semaglutide loses US exclusivity in 2032, the cliff CEO Mike Doustdar calls the elephant in the room 3. The people who built the obesity market are leaving Novo by the thousand; the molecules meant to defend it are arriving by invoice.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
