Novo Nordisk CEO Lars Fruergaard Jorgensen to resign as Ozempic faces stiff competition
The CEO of Danish pharmaceutical giant Novo Nordisk, known for its blockbuster weight-loss drug Ozempic, will step down following a plunge in the company's share price, the drug maker said on Friday.
The company said it was searching for a successor for Lars Fruergaard Jorgensen, who has held the position since 2017 and will continue in the role until the next CEO is found.
"The changes are made in light of the recent market challenges Novo Nordisk has been facing, and the development of the company's share price since mid-2024," the company said in a statement.
Its share price fell by a further 3 per cent on the Copenhagen stock exchange following the announcement.
Under Jorgensen's leadership, Novo Nordisk became a first-mover in the obesity and diabetes drug market, with sales of its semaglutide GLP-1 injections (sold as Ozempic when prescribed to treat diabetes and Wegovy to manage weight loss) skyrocketing following their release.
However, investors have been concerned that Wegovy has lost its lead in the weight-loss market to Zepbound, an injection manufactured by rival firm Eli Lilly — and Novo Nordisk's share price has lost more than half its value since June last year.
Earlier this month, the company also cut its full-year sales growth forecast due to competition from copycat versions of semaglutide made in US pharmacies — a practice known as compounding.
The pharmacies had been allowed to make their own version of Ozempic due to a shortage of the drug — but US regulators ruled in February that the shortage had ended and pharmacies were to discontinue making compounded versions.
AFP/Reuters
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