In surprise move Wegovy-maker Novo Nordisk ousts CEO amid sagging sales
Wegovy-maker Novo Nordisk has pushed out CEO Lars Fruergaard Jorgensen over concerns the company is losing its first-mover advantage in the highly competitive obesity drug market.
Novo Nordisk announced the decision on Friday.
Days earlier, Novo Nordisk cut its sales and profit forecast for the first time since the launch of Wegovy four years ago, though Jorgensen had predicted a return to growth in its biggest market in the second half of this year.
Novo's chairman, Helge Lund, tried to reassure analysts and investors on a call that the company's strategy was intact and the plan for executing it had not changed.
He told the Reuters news agency that discussions to replace Jorgensen had occurred over the past few weeks. Novo said earlier that Jorgensen will remain in his role until a successor is found.
Under Jorgensen's leadership, Novo Nordisk became a world leader in the weight-loss drug market, with skyrocketing sales of its Wegovy and Ozempic treatments.
Analysts and investors were unconvinced of the need to replace him.
'He was leading the company for eight years and was, in my opinion, extremely successful,' Lukas Leu, a portfolio manager at Bellevue Asset Management, told Reuters.
Danske Bank analyst Carsten Lonborg Madsen was similarly caught off guard.
'The way we know Novo Nordisk is that normally you have patience when you're on the right track, and then you let things move in the right direction once you have the strategy right,' he said.
'It just feels like there's something that has gone pretty wrong here,' he said on the call.
Novo's shares have plunged since hitting a record high in June last year as competition, particularly from US rival Eli Lilly, makes inroads into its market share and as its pipeline of new drugs has failed to impress investors.
'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,' Novo said in its statement.
Jorgensen, at 58, has been CEO since 2017. He said in an interview with Danish broadcaster TV2 that he did not see the decision coming, and was only informed very recently.
Booming sales of Wegovy helped make Novo the most valuable listed company in Europe, worth $615bn at its peak in June last year, but its market value has halved to about $310bn.
Novo Nordisk's share price fell on the news, trading 0.8 percent lower by 14:01 GMT after being 4 percent higher earlier in the day.
The shares are down 32 percent year-to-date and 59 percent from their all-time high.
Eli Lilly has seen US prescriptions for its Zepbound obesity shot surpass Wegovy since mid-March in its biggest market. Eli Lilly shares were up 2.6 percent after the news.
Camilla Sylvest, Novo's head of commercial strategy and corporate affairs and a consistent presence alongside CEO Jorgensen, stepped down last month without citing a reason.
Former CEO of Novo Nordisk for 16 years and current chair of the Novo Nordisk Foundation, Lars Rebien Sorensen, will join the board as an observer with immediate effect with the aim of taking a seat at the next annual general meeting, Novo said.
The company is controlled by the Novo Nordisk Foundation through its investment arm, which owns 77 percent of the voting shares.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
a day ago
- Al Jazeera
Netherlands still backs Israeli F-35 ‘supply chain of death': Report
The Netherlands is still supporting the supply chain of Israel's version of the F-35 fighter jet, more than a year after a court banned direct Dutch exports of F-35 parts to Israel, a report claims. Research by the Palestinian Youth Movement (PYM) shared with Al Jazeera shows that the port of Rotterdam is regularly frequented by ships carrying F-35 parts for maintenance and assembly. The ships belong to the Danish shipping giant Maersk. By examining import data and shipping receipts of Maersk and Lockheed Martin – the United States weapons manufacturer that designed the F-35 – the group found that more than a dozen shipments from Israel travelled through the port of Rotterdam on their way to the US. The F-35 fighter jet has been used by Israel to bomb Gaza from the air with devastating effect. Much of the Strip, where more than 50,000 people have been killed since October 2023, is in ruins. 'Maersk now operates a recurring shipping cycle between Lockheed Martin's Fort Worth facility in Texas and Israel Aerospace Industries in Israel, routed through Rotterdam,' the report stated. 'In this cycle, Maersk transports pairs of empty F-35 wing containers from Houston to Ashdod, Israel, where they are loaded with completed F-35 wings. The filled containers are then shipped back to the US for final assembly or repair.' The researchers noted that Rotterdam is a 'key stopover point in this process, and shipments for this cycle have occurred beyond February of 2024'. Then, a judge at a Dutch appeals court ordered the Netherlands to stop exporting and transiting F-35 parts to Israel, saying there was a 'clear risk' they were being used in 'serious violations of international humanitarian law'. The Dutch state immediately lodged an appeal at the Supreme Court, but until a decision is made, it is still bound by the lower court's ruling. 'The findings in the report show that the port of Rotterdam plays an important role in sustaining the operational capacities of Israel's F-35 fighter jets. This way, the port of Rotterdam is complicit to international law violations in Gaza,' Gerard Jonkman, director of a Dutch NGO, The Rights Forum, told Al Jazeera. The Dutch Foreign Ministry told Al Jazeera that the court had subsequently confirmed that the judgement in February 2024 applied only to the export or transit of F-35 parts from the Netherlands to Israel and that the Dutch state had implemented the judgement accordingly. A spokesperson for the port of Rotterdam told Al Jazeera that the Dutch Ministry of Foreign Affairs was responsible for issuing permits for the transhipment of military goods. Port officials check vessel compliance with environmental and safety regulations for shipping on behalf of the government and municipality of Rotterdam, they said. 'The harbour master receives only limited information regarding vessel cargo. The information received mainly pertains to whether the vessel is carrying hazardous substances. Other aspects of vessel cargo are monitored by various other public authorities, such as customs.' They said they were 'aware' of the February 2024 court ruling. 'All activities in the port must comply with international laws and regulations and the permits issued by the government. If we see any indication that this is not the case, the Port of Rotterdam Authority alerts the competent authority.' The Rights Forum was one of three parties, together with the Dutch affiliate of Oxfam and PAX for Peace, the largest peace organisation in the Netherlands, that sued the Dutch state over its export of F-35 parts to Israel. 'In this case, there is no direct export from the Netherlands to Israel, but the Netherlands is still part of the supply chain for the Israeli F-35 programme,' Gerard Jonkman, head of the Rights Forum, said of the Palestinian Youth Movement's findings. 'This way the Netherlands facilitates the Israeli F-35 programme and might breach its obligations under international law.' PAX for Peace project leader Frank Slijper told Al Jazeera: 'This indeed shows that the Netherlands is part of the F-35 supply chain.' A grassroots organisation, the Palestinian Youth Movement believes that targeting Maersk directly disrupts the flow of weapons in the 'supply chain of death used to genocide Palestinians'. According to the group, Maersk has shipped the wings for every Israeli F-35 since March 2022. In November 2024, following a decision by Spain to deny docking permission to two ships carrying weapons bound for Israel, Maersk adjusted its routes. The company's fleet now avoids Spain in favour of Rotterdam and the port of Tangier in Morocco 'Maersk has, for years, knowingly supplied the Israeli military with key weapons components used to carry out genocide in Gaza,' Aisha Nizar of the Palestinian Youth Movement told Al Jazeera. 'The company has done so without hesitation, potentially violating multiple arms embargo policies across Europe.' The F-35 is considered a top-of-the-line fighter jet. The aircraft designed by Lockheed Martin costs at least $80m in its most basic configuration. Currently, 12 countries operate the jet. F-35 parts are made in the United States and several participating partner countries, giving the project the moniker Joint Strike Fighter. 'It is very sad to see that Maersk is not distancing itself from Israel's crimes against humanity in Gaza and more broadly continues lending itself to the crucial replenishment of Israel's armed forces,' Slijper said. 'Shipping military supplies for the benefit of Israel's arms industry and the [Israeli army] risks Maersk being complicit in Israel's crimes.' The use of the jet by Israel, the only country with its unique version of the F-35, has been scrutinised since the start of the onslaught in Gaza. Recently, campaign groups took the United Kingdom government to court in a bid to halt the exports of British-made F-35 parts to Israel. In a statement to Al Jazeera, Lockheed Martin said: 'Foreign military sales are government-to-government transactions, and we closely adhere to US government policy with regard to conducting business with international partners.' Regarding F-35 shipments, Maersk told Al Jazeera that it upholds a strict policy of not shipping weapons or ammunition to active conflict zones and that it conducted due diligence, particularly in regions affected by active conflicts, including Israel and Gaza, and adapts this due diligence to the changing context. It confirmed, however, that its US subsidiary Maersk Line Limited was one of 'many companies supporting the global F-35 supply chain' with transport services. The F-35 programme includes several coalition countries, including Israel. 'As part of the coalition-building of the F-35, Maersk Line Limited regularly transports parts between participating countries, including Israel, where F-35 wings are manufactured,' it said.
Al Jazeera
a day ago
- Al Jazeera
US presses NATO to agree defence spending hike
United States Secretary of Defense Pete Hegseth has pressed NATO members to agree to Donald Trump's demand for a major increase in defence spending ahead of a summit later this month. The US president has said NATO allies should boost investment in defence to 5 percent of gross domestic product (GDP), up from the current target of 2 percent. 'To be an alliance, you got to be more than flags. You got to be formations. You got to be more than conferences. You need to be, keep combat-ready capabilities,' Hegseth said as he arrived for a meeting of defence ministers in Brussels on Thursday. 'We're here to continue the work that President Trump started, which is a commitment to 5 percent defence spending across this alliance, which we think will happen,' Hegseth said, adding: 'It has to happen by the summit at The Hague later this month.' In an attempt to compromise with the new target, NATO Secretary General, Mark Rutte has proposed that members of the military alliance boost defence spending to 3.5 percent of GDP and commit a further 1.5 percent to broader security-related spending. 'We have to go further and we have to go faster,' Rutte told reporters on Wednesday. 'A new defence investment plan will be at the heart of the NATO summit in The Hague,' he added. Reporting from Brussels, Al Jazeera's Hashem Ahelbarra said for some European countries, including Spain, Germany and Belgium, meeting a 5 percent target will be 'extremely difficult'. 'But they have decided they are going to further coordinate their military strategy particularly when it comes to acquiring air defence systems, long-range missiles and also train their troops to be ready for the potential of any geopolitical change,' Ahelbarra said. Since Russia launched its full-scale invasion of Ukraine in February 2022, European NATO members have been steadily increasing their defence spending. Ahelbarra said European members are 'concerned' that Russia remains the 'biggest threat to stability in the region'. Diplomats have said that countries are attempting to negotiate the timeline to achieve the 5 percent target. Rutte has proposed reaching the target by 2032, which some countries consider too late, while others think it's unrealistic, considering current spending and industrial production levels. Lithuanian Defence Minister Dovile Sakaliene said on Wednesday that the 2032 target was 'definitely too late, and pushed for a target of 2030 at the latest. Swedish Defence Minister Pal Jonson told reporters on Thursday that Stockholm also wants to see the bloc reach the 5 percent target by 2030. Meanwhile, NATO officials have estimated that, on average, meeting the new targets would cost countries between 3.5 and 3.7 percent of GDP.
Al Jazeera
2 days ago
- Al Jazeera
LIVE: Portugal vs Germany – UEFA Nations League semifinal
Hosts Germany entertain Portugal in the first semifinal of the 2025 UEFA Nations match at Allianz Arena in Munich, Germany, kicks off at 9pm (19:00 GMT).Germany beat Italy 5-4 in their quarterfinal over two who finished top of Group 1, beat Denmark 5-3 on aggregate in their last-eight Spain face 2021 champions France in the second semifinal on up to date: Follow Al Jazeera Sport on our website and on X for the latest news, features and live events from around the world. Update: Date: 8m ago (16:45 GMT) Title: Who are the defending Nations League champions? Content: Spain – who were defeated finalists in the 2021 edition of the tournament, which is staged over a two-year period – beat Croatia 5-4 on penalties after a goalless draw in Rotterdam, Netherlands, in the 2023 final. In the 2021 final, the Spaniards were beaten 2-1 by France, who they face in Thursday's second semifinal. Their victory in 2023 ended an 11-year search for silverware. Click here to read our match report from the last final. Update: Date: 23m ago (16:30 GMT) Title: Pre-match reading: Who has qualified for the FIFA Club World Cup? Content: The revamped 2025 FIFA Club World Cup, to be held from June 14 to July 13 in the United States, features a record number of teams taking part. Thirty-two clubs drawn from six FIFA confederations are allocated into eight groups of four, and each team will play three group stage matches in a round-robin format. The top two teams from each group advance to the knockout stage, starting with the round of 16 and culminating with the final, to be played at MetLife Stadium in New Jersey. The last two champions of the tournament – Manchester City (2023) and Real Madrid (2022) – headline a long list of top-flight clubs from around the globe incentivised by the record $1bn prize purse spread between the confederations and the clubs. Click here to read our full report on all 32 teams that qualified. Update: Date: 38m ago (16:15 GMT) Title: Last up for Al Jazeera Sport – PSG lift the Champions League Content: France's Paris Saint-Germain beat Italy's Inter Milan 5-0 in the final of the UEFA Champions League. Desire Doue, the 19-year-old French forward, scored twice and set up one to steal the show. The match at the Allianz Arena in Munich, Germany, was a record margin of victory in the competition's final and is the Qatari-backed French club's first title in the competition. Click here to read our match report or here to review our live text commentary stream. Update: Date: 53m ago (16:00 GMT) Title: Who did Germany beat in their quarterfinal? Content: Germany beat Italy 5-4 on aggregate in their last-eight encounter. The Germans, who finished top of Group 3 in League A, claimed a 2-1 lead in Italy in the first leg. The Italians fell three down in the second leg before fighting back to nearly take the tie to extra time. Update: Date: 1h ago (15:45 GMT) Title: Who did Portugal defeat in the quarterfinals? Content: Portugal beat Denmark 5-3 on aggregate in their quarterfinal. The Portuguese, who finished top of Group 1, lost the first leg 1-0 in Denmark. The Danes were unable to hold onto their advantage in the second leg with Francisco Trincao scoring twice and Cristiano Ronaldo also among the scorers in the 5-2 turnaround. Click here to read our match report or here to review our live text coverage of the game. Update: Date: 1h ago (15:30 GMT) Title: Fernandes confirms he has rejected Saudi Pro League move Content: Bruno Fernandes has confirmed he rejected a huge offer from Saudi Arabia and chose instead to stay at Manchester United, saying he wanted to 'continue to play at the highest level'. Speaking to media in a Portugal camp ahead of Wednesday's Nations League semifinal against Germany in Munich, the football midfielder confirmed he received an 'exciting offer' from Al-Hilal but wanted to be part of manager Ruben Amorim's rebuild at Old Trafford. Reports said Al-Hilal were willing to pay United up to 100 million British pounds ($135m) for the 30-year-old Portugal international. 'The president of Al-Hilal called me and asked me if I wanted to move there,' Fernandes confirmed, saying the club 'waited for me to think about my future'. 'I talked to the gaffer and he asked me not to go,' Fernandes revealed, adding: 'Man United said they didn't want to sell me. 'They said if I wanted to go, I could, but they didn't need the money.' Click here to read our full report following Wednesday's press conference ahead of the game. Update: Date: 1h ago (15:15 GMT) Title: What's next for Ronaldo, and will he play in the Club World Cup? Content: Cristiano Ronaldo is set to quit his club team Al Nassr, ending his association with the lucrative Saudi Pro League. The 40-year-old Portugal striker announced only hours after his club's final match of the season that 'This chapter is over' via his account on the social media platform X. The post included a picture of him in an Al Nassr jersey and concluded: 'The story? Still being written. Grateful to all.' Speculation immediately moved into overdrive about where the former Manchester United, Real Madrid and Juventus forward will move next. Click here for our take on what what might occur in the coming days and possible options ahead for a player who remains one of world football's most bankable assets. Update: Date: 1h ago (15:00 GMT) Title: Welcome to our live coverage Content: Hello, welcome and thanks for joining our live coverage of Germany against Portugal. UEFA's Nations League is bubbling to a belting finish with Spain and France competing in Thursday's second semifinal. First up in Munich, however, is the host nation against the team still punching above their weight on both the European global stage. That is mainly thanks to one of the greatest of all time – if not the greatest – Cristiano Ronaldo, who is still leading the line on both the international and domestic stage. I'm Kevin Hand and I'll take you through the live build-up, as well as bringing you the photo coverage of the day. Patrick Keddie will bring you the team news as it drops, as well as our comprehensive text commentary stream. So stick with us for all the talking points, analysis and the action itself.
