This biotech is halting its work with Novo Nordisk and laying off more people
By Claudia Assis
Korro says restructuring will free up cash to last into second half of 2027
Novo Nordisk's logo outside headquarters in Denmark. A small biotech company is the latest to rethink its ties with the Danish pharma company.
Shares of Korro Bio Inc. lost two-thirds of their value in the extended session Wednesday after the biotech company said it was pausing its work with Novo Nordisk, the weight loss-medication juggernaut, and also laying off a third of its remaining employees.
The goal is to focus resources elsewhere and the layoffs are part of a "strategic restructuring" that would stretch the company's cash into the second half of 2027, Korro said. As of last December, Korro had 104 full-time employees, but laid off about 20% in the spring.
Korro's stock (KRRO) dropped nearly 80% in the extended session Wednesday. Korro said it will incur about $2.4 million in restructuring charges, including employee severance and benefits, mostly to be recognized in the fourth quarter.
The company said it was pausing a research and license agreement with Novo Nordisk for a year while Korro reassesses that deal.
Novo Nordisk (NVO) (DK:NOVO.B), for its part, has been scuppering some of its licensing deals to streamline its business. Novo, maker of diabetes and weight-loss drugs Ozempic and Wegovy, among others, got a new chief executive in August.
-Claudia Assis
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11-12-25 1759ET
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