Novo Nordisk CEO to Step Down

Source Credit : CNBC

Novo Nordisk announced on Friday that CEO Lars Fruergaard Jørgensen will be stepping down from his position, attributing his decision to recent challenges in the market.

The Danish pharmaceutical giant announced that Fruergaard Jørgensen will continue in his role "for a period to facilitate a seamless transition to new leadership." The company also stated that the search for a successor is actively underway, with an announcement to be made in due course.

Novo Nordisk shares recently experienced a decline of 3%. In contrast, shares of its competitor in the obesity drug market, Eli Lilly, saw an increase of 1.6% in premarket trading.

The decision follows a significant decline in Novo Nordisk's share price over the past year, driven by heightened competition in the rapidly expanding obesity drug market and unsatisfactory trial results for its next-generation treatments.

The company’s share price is currently down by more than 50% since the middle of 2024.

“Novo Nordisk’s strategy remains unchanged, and the Board is confident in the company’s current business plans and its ability to execute on the plans,” Chairman Helge Lund said in a statement.

“The changes are, however, 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,” the company said in a statement.

In light of this transition, the company announced that Lars Rebien Sørensen, Chair of the Novo Nordisk Foundation, will join the board of Novo Nordisk, initially serving in an observer capacity.