Novo Nordisk (NVO) Slides After CEO Departure; Analyst Flags Deeper Strategic Concerns
Novo Nordisk (NVO, Financials) shares fell nearly 4% after the company said CEO Lars Fruergaard Jrgensen will step down. A replacement has not been named.
Warning! GuruFocus has detected 1 Warning Sign with NVO.
Shares of the Ozempic maker have declined 52% over the past year, compared with a less than 3% drop for rival Eli Lilly (LLY, Financials), which markets the weight-loss drug Zepbound.
Novo's leadership change comes amid mounting pressure in the GLP-1 drug space, where Lilly's prescription growth has outpaced Novo's performance.
Evan David Seigerman of BMO Capital Markets told CNBC the leadership change won't resolve the company's core strategic issues. He said the company must reevaluate its current trajectory and design a more effective long-term plan.
Seigerman's remarks fueled speculation that Novo could pursue acquisitions. Shares of Structure Therapeutics, which is developing oral obesity drugs, rose more than 2% at midday on takeover rumors.
Explore Novo Nordisk's historical financials.
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This article first appeared on GuruFocus.
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