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Novo Nordisk has announced that chief executive Lars Fruergaard Jørgensen will step down just days after the pioneering maker of obesity drugs cut its profit forecast.
The Danish group that developed the Wegovy and Ozempic drugs said on Friday that it had started the search for a new boss after agreeing with Jørgensen that new leadership was needed.
“Considering the recent market challenges, the share price decline and the wish from the Novo Nordisk Foundation, the Novo Nordisk board and Lars Fruergaard Jørgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders,” Novo said.
Shares in the drugmaker have fallen more than 50 per cent in the past year, causing it to lose its crown as Europe’s largest listed company by market capitalisation.
Investors have become concerned that its obesity and diabetes drugs are losing market share to US rival Eli Lilly, and have been disappointed by trial results from next-generation medicines in its pipeline.
Last week, the company cut sales and profit forecasts for the year, blaming the rapid expansion of replica drugs in the US. These cheaper alternatives — sold by so-called compounding pharmacies — were temporarily allowed when there was a shortage of the drugs.
Novo said sales growth for this year was now expected to be 13 to 21 per cent at constant exchange rates, compared with earlier guidance of 16 to 24 per cent. It forecast operating profit growth of 16 to 24 per cent, compared with a previous range of 19 to 27 per cent.
Jørgensen has led the drugmaker for eight years, during which time the share price has tripled.
In its statement on Friday, Novo noted concern about the company’s share price “since mid-2024”. Shares fell 21 per cent in one day in late December when the company announced that its follow-up obesity drug CagriSema had missed its target in a late-stage clinical trial.
Novo said it would make an announcement about its search for a new chief executive “in due course”. Jørgensen would continue in his role for a period to ensure a smooth transition, it added.
The Novo Nordisk Foundation, which owns the company through Novo Holdings, is increasing its representation on the board. Lars Rebien Sørensen, the foundation’s chair, will begin to participate in board meetings immediately.
Jørgensen said he was “proud of the results” he had produced at the company along with colleagues “who work every day to drive change to defeat serious chronic diseases”.
Shares in Novo Nordisk fell following the announcement, trading 3.8 per cent lower on the day.
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