Under the leadership of Lars Fruergaard Jorgensen, Novo Nordisk has emerged as a dominant force in the global weight-loss drug market. The company's flagship products, Wegovy and Ozempic, have seen remarkable sales growth, significantly contributing to the surge in its share price, which has positioned Novo Nordisk as Europe’s most valuable publicly listed company. However, recent market challenges have prompted the company to announce a change in leadership.
In a statement, Novo Nordisk acknowledged the shifting landscape of the pharmaceutical industry, particularly the increased competition from Eli Lilly’s Zepbound, which has gained traction in the U.S. market, surpassing prescriptions for Wegovy since mid-March. These developments have raised concerns regarding Novo Nordisk’s market position and share price, which has seen a notable decline since mid-2024.
Jorgensen, who has served as CEO since 2017, will continue in his role until a successor is appointed. The company’s board has made this decision in collaboration with the Novo Nordisk Foundation, which holds 77% of the voting shares, indicating a strategic approach to navigate the current challenges while aligning with the foundation's vision for the future of the company.
Former CEO Lars Rebien Sorensen, who led Novo Nordisk for 16 years and is currently the chair of the Novo Nordisk Foundation, is set to join the board as an observer. His experience is expected to guide the company through this transitional period, with plans for him to secure a formal seat at the next annual general meeting.
Following the announcement of the leadership transition, Novo Nordisk's share price reacted negatively, trading 3% lower by 11:33 GMT after an earlier increase of 4% earlier in the day. The shares have faced a significant downturn, down 32% year-to-date and a staggering 59% from their all-time high recorded in June of the previous year. This decline underscores the urgency for Novo Nordisk to adapt to the evolving market conditions and regain investor confidence.
As Novo Nordisk navigates these challenges, stakeholders are closely watching the company’s next steps in leadership and strategy, particularly in light of the competitive pressures in the obesity treatment sector. The direction taken by the incoming CEO will be pivotal in shaping Novo Nordisk's future as it strives to maintain its leadership in the weight-loss drug market.
Reporting by Stine Jacobsen and Jacob Gronholt-Pedersen, with editing contributions from Terje Solsvik and Elaine Hardcastle.
