Novo Nordisk CEO steps down amid growing competition for weight loss drugs

By Gabriela Galvin & Eleanor Butler

Danish pharmaceutical elephantine Novo Nordisk is saying goodbye to its main executive amid increasing title for its blockbuster weight nonaccomplishment narcotics Wegovy and Ozempic.

Lars Fruergaard Jørgensen, who led nan institution for 8 years, will measurement down owed to “market challenges” and a driblet successful nan company’s stock value complete nan past year, Novo Nordisk said connected Friday.

In March, nan company’s stocks tumbled by 27 per cent, marking its worst monthly performance successful much than 2 decades. Last week, nan patient cut its 2025 forecast for some income maturation and operating profit growth.

At changeless speech rates, income maturation is expected to beryllium 13 per cent to 21 per cent this year, compared to erstwhile guidance of 16 per cent to 24 per cent. The patient forecast its operating profit maturation astatine 16 per cent to 24 per cent, little than a erstwhile scope of 19 per cent to 27 per cent.

American rival Eli Lilly has posed immoderate of Novo Nordisk’s stiffest competition. In April, it announced promising early results for a once-daily weight nonaccomplishment pill that could go an replacement to jabs for illustration Wegovy and Ozempic.

The financial pressures prompted nan activity of nan Novo Nordisk Foundation, a charitable group that controls nan drugmaker, to push Jørgensen toward nan exit.

“Considering nan caller marketplace challenges, nan stock value decline, and nan wish from nan Novo Nordisk Foundation, nan Novo Nordisk Board and Lars Fruergaard Jørgensen person jointly concluded that initiating a CEO succession is successful nan champion liking of nan institution and its shareholders,” nan institution said.

Jørgensen will stay CEO while nan institution looks for his successor successful bid to “support a soft modulation to caller leadership,” according to Novo Nordisk, 1 of nan European Union’s largest companies.

He first joined nan patient successful 1991, rising to main executive successful 2017.

Novo Nordisk’s stock value dropped much than 5 per cent successful US pre-market trading arsenic of astir 2pm CEST.