Novo Nordisk CEO steps down amid obesity drug market setbacks
[1/2]Novo Nordisk?s Chief Executive Lars Fruergaard Jorgensen talks to a journalist at the company's offices on the outskirts of Copenhagen, Denmark, March 8, 2024. PHOTO:REUTER
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Novo Nordisk CEO Lars Fruergaard Jørgensen will step down after eight years at the helm, as the Danish pharmaceutical giant battles intensifying competition in the global obesity drug market.
The decision, announced Friday, follows a dramatic 50% drop in the company's share price since mid-2024.
The maker of blockbuster drugs Wegovy and Ozempic cited ongoing market challenges and disappointing trial results for its next-generation treatment CagriSema as key reasons for the leadership change.
The board said the move was made 'per mutual agreement' and that Jørgensen would remain temporarily to ensure a smooth transition.
Novo Nordisk's chairman Helge Lund said the company's strategy remains unchanged, and it is confident in its current business plans. The search for a successor is underway.
Meanwhile, former CEO and current chair of the Novo Nordisk Foundation, Lars Rebien Sørensen, will join the company's board as an observer.
Shares fell 1.8% Friday following the announcement, while rival Eli Lilly gained 1.7%.
Novo recently cut its full-year growth forecast after lower-than-expected Q1 sales of Wegovy, citing competition from compounded versions of obesity drugs in the US.
The company expects improvement later this year as the FDA phases out compounded alternatives.
Jørgensen, who has been with Novo since 1991, expressed surprise at the decision, telling Danish broadcaster TV2 he had not expected it.
His departure follows that of Camilla Sylvest, the company's former head of commercial strategy, last month.
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Novo Nordisk CEO steps down amid obesity drug market setbacks
[1/2]Novo Nordisk?s Chief Executive Lars Fruergaard Jorgensen talks to a journalist at the company's offices on the outskirts of Copenhagen, Denmark, March 8, 2024. PHOTO:REUTER Listen to article Novo Nordisk CEO Lars Fruergaard Jørgensen will step down after eight years at the helm, as the Danish pharmaceutical giant battles intensifying competition in the global obesity drug market. The decision, announced Friday, follows a dramatic 50% drop in the company's share price since mid-2024. The maker of blockbuster drugs Wegovy and Ozempic cited ongoing market challenges and disappointing trial results for its next-generation treatment CagriSema as key reasons for the leadership change. The board said the move was made 'per mutual agreement' and that Jørgensen would remain temporarily to ensure a smooth transition. Novo Nordisk's chairman Helge Lund said the company's strategy remains unchanged, and it is confident in its current business plans. The search for a successor is underway. Meanwhile, former CEO and current chair of the Novo Nordisk Foundation, Lars Rebien Sørensen, will join the company's board as an observer. Shares fell 1.8% Friday following the announcement, while rival Eli Lilly gained 1.7%. Novo recently cut its full-year growth forecast after lower-than-expected Q1 sales of Wegovy, citing competition from compounded versions of obesity drugs in the US. The company expects improvement later this year as the FDA phases out compounded alternatives. Jørgensen, who has been with Novo since 1991, expressed surprise at the decision, telling Danish broadcaster TV2 he had not expected it. His departure follows that of Camilla Sylvest, the company's former head of commercial strategy, last month.
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