Novo Nordisk announced Friday that CEO Lars Fruergaard Jorgensen will step down. This follows a sharp drop in the company’s share price due to increased competition in the obesity drug market.
Novo Nordisk stated, “The changes are 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.”
Jorgensen spearheaded Novo Nordisk’s entry into the obesity and diabetes drug market. Wegovy and Ozempic treatments saw sales soar under his leadership.
However, investors are worried that Novo’s initial advantage in the obesity drug market is diminishing. Eli Lilly’s Zepbound prescriptions in the U.S. have exceeded Wegovy’s since mid-March.
By 1116 GMT, Novo Nordisk’s share price had fallen 2.2%. The share price is down 32% so far this year.
Jorgensen, who started at Novo Nordisk in 1991 and became CEO in 2017, will remain CEO during a transition period. The company is currently searching for his replacement.
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