Novo Nordisk announced on Friday that its CEO, Lars Fruergaard Jørgensen, will step down as the company faces increasing competition in the obesity drug market. The Danish pharmaceutical giant stated that Jørgensen will stay in his position temporarily to ensure a smooth leadership transition. The search for a new CEO is ongoing.
Novo Nordisk’s shares dropped by 3% following the announcement, while rival Eli Lilly’s shares rose by 1.6% in premarket trading. This decision comes after Novo Nordisk’s share price fell significantly over the past year due to increased competition and disappointing trial results for its next-generation treatments.
Chairman Helge Lund emphasized that Novo Nordisk’s strategy remains unchanged, but the board acknowledges the market challenges the company has faced since mid-2024. Additionally, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join the board as an observer.
Recently, Novo Nordisk reported lower-than-expected first-quarter sales of its flagship obesity drug, Wegovy, and reduced its full-year sales growth forecast due to competition from compounded drug markets in the U.S. The company anticipates sales improvement in the second half of the year as copycat compounded drugs are phased out following the FDA’s decision to end its drug shortage ruling.
Despite setbacks, Novo Nordisk remains optimistic about its next-generation obesity drug candidate, CagriSema.
— new from CNBC