Novo Nordisk CEO Lars Fruergaard Jørgensen to Step Down Amid Rising Market Pressures
Lars Fruergaard Jørgensen, the long-serving Chief Executive Officer of Danish pharmaceutical major Novo Nordisk, is set to step down from his role as the company faces mounting challenges in the obesity drug market. The announcement comes at a time when the maker of Wegovy is under pressure due to increasing competition and weak trial outcomes for its next-generation therapies.
In an official statement released on Friday, Novo Nordisk confirmed that Jørgensen will remain in his position for a transition period while the search for his successor continues. The board assured stakeholders that further details about the leadership change would be shared in due course.
The development follows a difficult year for the drugmaker, with its share price plunging over 50 percent since mid-2024. Rival Eli Lilly, which also offers obesity treatments, has gained market ground, and its shares were trading higher in premarket trade following the announcement from Novo Nordisk.
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Despite the leadership shift, the company’s board stated that its long-term strategy remains unchanged. “The board is confident in the company’s current business plans and its ability to execute them,” Chairman Helge Lund said.
The leadership shake-up also brings a familiar face back into the fold. Lars Rebien Sørensen, Chair of the Novo Nordisk Foundation, will be joining the company’s board as an observer during the transition period.
Novo Nordisk recently reported lower-than-expected first-quarter sales of Wegovy, its flagship obesity drug, and revised its full-year sales growth forecast downward. The company attributed part of the slowdown to the growing availability of compounded versions of obesity drugs in the U.S. market. “Compounders took a part of our business away,” Jørgensen acknowledged in a recent interview.
However, the company expects a recovery in the second half of the year, as the U.S. FDA has ended its drug shortage ruling, which allowed compounded drugs to be sold as alternatives.
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Adding to investor concerns are the underwhelming results from trials of its next-generation obesity drug candidate, CagriSema. Despite the setbacks, Jørgensen has remained optimistic. “From the data we have, CagriSema is the best product that has been tested or is on the market,” he said.
As Novo Nordisk prepares for a leadership transition, all eyes will be on the company’s ability to regain market confidence and push forward with innovation in the increasingly competitive obesity drug segment.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
