UPDATE 2-Novo Nordisk shuts diabetes cell therapy unit, Bloomberg News reports

(Adds details in paragraph 3 and background in paragraphs 7 to 9) Oct 10 (Reuters) – Novo Nordisk has cut its cell therapy division, where it was trying to find a cure for type 1 diabetes, Bloomberg News reported on Friday. It also cited Danish newspaper Borsen, which reported that the company would lay off nearly all of the unit's 250 employees. Novo was testing its cell therapy to generate insulin-producing beta cells for patients with type 1 diabetes in a preclinical study, along with another cell therapy candidate for Parkinson's disease in early-stage trials. The latest move is part of CEO Mike Doustdar's plan to reduce headcount by 11% and reallocate resources to high-priority research areas, the Bloomberg report said. Novo did not immediately respond to a Reuters request for comment. The Danish drugmaker is seeking partners to continue developing its innovations, according to the report. It has laid off dozens of employees at the largest U.S. manufacturing site for its blockbuster obesity and diabetes drugs, Reuters reported earlier this week, citing a review of LinkedIn posts. Novo said on Thursday it would buy U.S.-based Akero Therapeutics for up to $5.2 billion to gain access to a promising liver disease drug candidate in the first major deal by the Danish drugmaker's new CEO to spur growth. Earlier this month, it called off its $598 million collaboration with Japanese biotech Heartseed to develop cell therapy for advanced heart failure. (Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber, Alan Barona, Sahal Muhammed and Pooja Desai)

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