Novo Nordisk to cut 250 jobs in the United States

[COPENHAGEN] Denmark's Novo Nordisk, the world's top maker of diabetes drugs, will cut around 250 jobs in the United States, a spokesman told Reuters on Friday.

He said it would also hire some new staff in other positions but that the company did not know the number of new positions yet.

The firm, which employs more than 42,000 people in 79 countries, has seen growth slow due to pricing pressures in the United States, from where it sources about half its revenue.

The company  said in May that new US legislation aimed at reining in high drug prices would cut its 2019 sales by 1-2 per cent.

On Sept 18, the firm announced it will lay off 400 staff in Denmark and China in order to divert funding towards investment in biological and technological innovation.

It announced 1,000 job cuts in 2016 as competition among insulin producers increased and prices were squeezed by pharmacy benefit managers (PBMs) who administer drug programs for employers and health plans.

REUTERS