Novo Nordisk’s share price has taken a significant hit over the past year due to increased competition in the obesity drug market. The Danish pharmaceutical giant announced that CEO Lars Fruergaard Jørgensen is stepping down as the company seeks to revive its fortunes.
Jørgensen, who led Novo Nordisk for eight years, will remain in his post for a short period to ensure a smooth transition to new leadership. The search for a successor is ongoing, and an announcement will be made in due course.
The decision comes as Novo Nordisk faces significant challenges from rival companies, including Eli Lilly, which saw its shares rise 1.7% after the announcement. Jørgensen attributed the decline to “compounders” taking away business, but said sales are expected to improve in the second half of the year as copycat compounded drugs are phased out.
Jørgensen previously expressed optimism about his company’s next-generation obesity drug candidate CagriSema, but recent trial results have been disappointing. The new board member, Lars Rebien Sørensen, will join Novo Nordisk’s board initially as an observer, indicating a shift in the company’s strategy and leadership.
Source: https://www.cnbc.com/2025/05/16/novo-nordisk-ceo-to-step-down-as-competition-weighs-on-share-price.html