According to an article published on Seeking Alpha, Novo Nordisk has decided to make some significant changes in its drug development strategy as a result of the ‘current payment atmosphere’ in which patients are no longer willing to pay more for drugs that only incrementally improve efficacy.
Novo Nordisk’s revised R&D strategy has three key parts:
- apply a higher innovation threshold for diabetes projects
- increase the focus in areas of high unmet need including NASH, CVD (cardiovascular disease), and CKD (chronic kidney disease) that are adjacent to diabetes
- strengthen the early-stage portfolio through in-licensing and external academic collaborations.
As part of this change in strategy the company has decided to drop its oral insulin development projects which have been assessed not to be commercially viable in the increasingly challenging payer environment.
For the full article please go to Seeking Alpha.