Novo Nordisk CEO Lars Jorgensen testifies before a Senate Health, Education, Labor, and Pensions Committee hearing on U.S. prices for the weight loss drugs Ozempic and Wegovy, on Capitol Hill in Washington, U.S., September 24, 2024.
Piroschka Van De Wouw | Reuters
Novo Nordisk CEO Lars Fruergaard Jørgensen is stepping down, the Wegovy-maker said Friday, citing recent market challenges.
The Danish pharmaceutical giant said Fruergaard Jørgensen would remain in his post “for a period to support a smooth transition to new leadership.” It added that the search for a replacement was ongoing and an announcement would be made in due course.
Novo Nordisk shares were last trading 3% lower. Meanwhile, shares of rival obesity drug maker Eli Lilly were up 1.6% in premarket trading.
The decision comes as Novo Nordisk’s share price has taken a battering over the past year amid increased competition in the ballooning obesity drug market and disappointing trial results for its next-generation treatments.
The company’s share price is currently down by more than 50% since the middle of 2024.
“Novo Nordisk’s strategy remains unchanged, and the Board is confident in the company’s current business plans and its ability to execute on the plans,” Chairman Helge Lund said in a statement.
“The changes are, however, 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,” the company said in a statement.
In connection with the change, the company said that Novo Nordisk Foundation chair Lars Rebien Sørensen will join Novo Nordisk’s board, initially as an observer.
This is a breaking news story, please check back for updates.