Novo Nordisk announced that CEO Lars Fruergaard Jørgensen will step down following a sharp decline in the company’s share price and mounting competition in the weight-loss drug market. Jørgensen, who has led the company since 2017, will remain in his role during a transition period until a successor is appointed.
Under Jørgensen’s leadership, Novo Nordisk experienced explosive growth, with sales, profits, and share price nearly tripling as the company became Europe’s most valuable publicly traded firm. However, shares have plummeted 32% year-to-date and are down nearly 60% from their June 2024 peak, as rivals-particularly U.S.-based Eli Lilly-erode Novo Nordisk’s first-mover advantage. Prescriptions for Eli Lilly’s Zepbound have recently surpassed those for Wegovy in the U.S., Novo Nordisk’s primary market.
The company’s board, in consultation with the Novo Nordisk Foundation, cited recent market challenges and investor concerns as reasons for accelerating the CEO succession process. The search for Jørgensen’s replacement is underway, with the board reaffirming confidence in Novo Nordisk’s strategy and leadership team.
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