Novo Nordisk CEO Steps Down as Drugmaker Faces Market Setbacks

The Danish pharmaceutical company Novo Nordisk faces leadership changes because its stock price has declined significantly while competitors gain market share through its blockbuster drugs Ozempic and Wegovy.
Lars Fruergaard Jørgensen will leave his position as CEO after eight years according to a company announcement on Friday. The company made this decision through mutual agreement with its board members and its largest shareholder Novo Nordisk Foundation after the stock price experienced a 50% decline throughout less than a year.
The European market leader Novo Nordisk achieved its position as the most valuable company through the massive success of its GLP-1 drugs which treat diabetes and obesity. The company experienced recent obstacles which have affected its growth path. The clinical trial results for CagriSema revealed disappointing performance from this promising drug. The company’s sales have declined because competitors Eli Lilly and compounding pharmacies provide low-cost alternatives to their products.
The foundation which controls 75% of voting power and 33% of equity ownership started the process of leadership change. The foundation asked for increased board member presence and appointed former CEO Lars Rebien Sørensen as a temporary observer with plans to make him a full board member by 2026.
The company announced that Jørgensen will continue his role until a new leader takes over while they conduct the search for a successor. The company’s strategy remains intact according to Chairman Helge Lund who also stated that Novo will continue to grow in the long term.
The pharmaceutical company Novo Nordisk experienced widespread recognition as a success story until it encountered increasing challenges from the combination of changing market demands and supply chain disruptions and innovative developments.