Novo Nordisk CEO Jørgensen to Step Down Amid Market Challenges

Lars Fruergaard Jørgensen, CEO of Danish pharmaceutical giant Novo Nordisk, will depart earlier than planned following a mutual agreement with the company's board. The decision comes in the wake of recent market challenges and a significant decline in the company's share price.

Jørgensen's Tenure and Novo Nordisk's Growth

During Jørgensen's eight-year tenure as CEO, Novo Nordisk experienced remarkable growth, with sales, profits, and share prices nearly tripling. Jørgensen, who has spent his entire career at Novo Nordisk since joining in 1991, played a crucial role in transforming the company into a global powerhouse in the diabetes and weight loss markets.

Under his leadership, Novo Nordisk's semaglutide franchise, including the blockbuster drugs Wegovy (for weight loss) and Ozempic (for diabetes), became household names. These products have driven significant revenue growth and market dominance for the company.

Recent Market Challenges and Share Price Decline

Despite the overall success during Jørgensen's tenure, Novo Nordisk has faced increasing market challenges since mid-2024. The company's shares have fallen by half in just one year, prompting concerns from the board and shareholders.

The decline in share price has been attributed to growing competition in the weight loss and diabetes markets, particularly from rival Eli Lilly. Lilly's tirzepatide, marketed as Zepbound for weight loss and Mounjaro for diabetes, has been gaining ground on Novo Nordisk's products. In the first quarter of this year, Wegovy brought in $2.64 billion for Novo Nordisk, while Zepbound generated $2.31 billion for Eli Lilly, significantly narrowing the gap between the two competitors.

Leadership Transition and Board Changes

In light of these challenges, the Novo Nordisk Foundation, the company's parent organization, approached the board to discuss accelerating Jørgensen's departure. The company has initiated a search for his replacement, with Jørgensen continuing in his role in the short term to ensure a smooth transition.

Additionally, the Novo Nordisk Foundation has requested more representation on the Novo Nordisk board. As a result, Lars Rebien Sørensen, Chair of the Novo Nordisk Foundation Board, will participate as an observer in the pharma's board meetings, effective immediately. Sørensen is expected to seek an official nomination to the board in 2026.

Novo Nordisk Board Chair Helge Lund emphasized that the company's strategy remains unchanged, expressing confidence in its current business plans and ability to execute them. Lund also thanked Jørgensen for his service and contributions to Novo Nordisk's overall success.