Novo Nordisk ousted its CEO Lars Fruergaard Jørgensen according to a surprise announcement by the company on Friday.
According to Reuters, Jørgensen told TV2 that he was informed of the decision very recently and had not seen the decision coming
The decision comes as the Ozempic and Wegovy maker’s stock price has heavily fallen, currently down 50% since 2024, mainly due to a fall in sales of its weight loss drug due to increased competition in the industry and disappointing trial results of its next-generation obesity drug candidate CagriSema.
Discussions to replace Jørgensen had been ongoing for the past several weeks between Novo Nordisk and the Novo Nordisk Foundation, which controls the firm Reuters reported.
The company controlled by the Novo Nordisk Foundation was clear to mention that this mutually agreed departure was due to its current market challenges and the fall of its share price.
Sales had considerably fallen after it was proven that competitor’s Eli Lilly drugs Mounjaro and Zepbound caused greater weight loss compared to Ozempic and Wegovy.
The company announced that a search for Lars Fruergaard Jørgensen’s successor is ongoing, and an announcement will be made in due course. Jørgensen will continue to serve as CEO to for a period to support transition to new leadership.
To reassure investors Helge Lund, chair of the Novo Nordisk Board, said the company’s strategy remains unchanged, and the Board is confident in the company’s current business plans and its ability to execute on the plans.
In connection with the change, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join the Novo Nordisk Board, initially as an observer.
Jørgensen joined Novo Nordisk in 1991 and was appointed chief executive officer in January 2017. He served as CEO for 8 years and under his leadership, Wegovy became the main catalyst of its business this driving up its valuation to $615bn at its peak but has since fallen to $310bn.
The shares are down 32 percent so far this year and 59% compared to its peak in June 2024.
