Underneath Jorgensen’s management, Novo Nordisk turned a world chief within the weight-loss drug market, with sky-rocketing gross sales of its Wegovy and Ozempic therapies which propelled its share value to turn into Europe’s most useful listed firm.
Nevertheless, its shares have plunged since hitting a record-high in June final 12 months as competitors, notably from U.S. rival Eli Lilly, makes inroads into its market share and as its pipeline of recent medicine has did not impress traders.
“The adjustments are made in gentle of the current market challenges Novo Nordisk has been dealing with, and the event of the corporate’s share value since mid-2024,” Novo mentioned in a press release.
Eli Lilly’s U.S. prescriptions for its Zepbound weight problems shot have surpassed Wegovy since mid-March in its largest market.
Jorgensen, 58, who has been CEO since 2017, will stay within the position till a brand new CEO has been appointed, the corporate mentioned. Former CEO of Novo Nordisk for 16 years and present chair of the Novo Nordisk Foundation, Lars Rebien Sorensen, will be part of the board as an observer with fast impact with the intention of taking a seat on the subsequent annual basic assembly, Novo mentioned. Novo Nordisk is managed by the Novo Nordisk Basis by way of its funding arm which owns 77% of the voting shares.
“Contemplating the current market challenges, the share value decline, and the want from the Novo Nordisk Basis, the Novo Nordisk Board and Lars Fruergaard Jorgensen have collectively concluded that initiating a CEO succession is in the very best curiosity of the corporate and its shareholders,” Novo Nordisk mentioned.
Novo Nordisk’s share value fell on the information, buying and selling 3% decrease by 1133 GMT after buying and selling 4% larger earlier within the day.
The shares are down 32% year-to-date and 59% from the all-time excessive in June final 12 months.
