Drug maker Novo Nordisk is cutting 400 jobs in Bloomington, amid signs that competition in the weight loss drug market has intensified.
A spokeswoman said in an email that the company would make the cuts in early May, after which about 1,400 local employees would remain.
“Despite this difficult decision, Novo Nordisk continues to invest in Site Bloomington as a critical part of our U.S. manufacturing network and our commitment to the people who depend on our medicines,” said Stacy Beard, public affairs and media relations principal.
She said the reduction was unrelated to the announcement from last fall that Novo Nordisk would cut 9,000 jobs globally.
“These are separate decisions driven by separate circumstances,” Beard said. “The situation at Site Bloomington has continued to evolve as we have worked through the integration of this acquired facility and as business conditions have shifted.”
Cuts will remove millions of dollars in annual wages
The job losses could remove tens of millions of dollars in annual wages from the local economy. Local economic development officials have said pharmaceutical manufacturing jobs typically pay above‑average wages: The Bloomington Economic Development Corp. said last year that new Simtra jobs would average about $70,000 a year. The losses also trickle down to other parts of the local economy. The BEDC has quoted analyses according to which each pharmaceutical manufacturing job in Monroe County supports about two additional jobs elsewhere in the local economy.
Novo Nordisk rode an Ozempic/Wegovy wave of success a few years ago, adding thousands of jobs and buying Catalent’s fill‑finish business for $16.5 billion to boost capacity. However, strong competition from companies including Eli Lilly has depressed margins, prompting Novo Nordisk to cut jobs after a period of rapid growth.
FiercePharma reported last week that expiring patents and growth from generic competitors are pressuring the industry. Large pharmaceutical companies last year cut 22,000 jobs as the industry “braces for a massive $300 billion patent cliff in prescription drug revenues between 2025 and 2030,” the digital outlet wrote.
Novo Nordisk said last month it expects sales for this year to fall up to 13%. The company’s share price has fallen by about 50% in the last year.
Boris Ladwig can be reached at bladwig@heraldt.com.
This article originally appeared on The Herald-Times: Novo Nordisk cuts 400 jobs at Indiana manufacturing site
Reporting by Boris Ladwig, The Herald-Times / The Herald-Times
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