Novo Nordisk CEO resigns amid plummeting share prices
- Lars Fruergaard Jorgensen's resignation is attributed to significant stock price decline and increased competition.
- Novo Nordisk's shares have dropped over 50% since mid-2024 amid challenges from competitors.
- The company aims to recover and maintain its strategic direction despite the leadership change.
In Denmark, on May 16, 2025, the pharmaceutical company Novo Nordisk announced that Lars Fruergaard Jorgensen would be stepping down as CEO. This decision was made by mutual agreement with the company's board of directors, highlighting the difficult market conditions that had contributed to a significant decline in the company’s stock price. Since mid-2024, the share price has plummeted by over 50%, primarily due to increased competition in the obesity drug market. Comparisons with competitor Eli Lilly's obesity drugs, especially after publishing a study showing superior weight loss results with their drug Zepbound, have further impacted Novo’s market position. The announcement of Jorgensen's departure coincided with a recent downgrade in the company’s sales and profit forecasts. While Jorgensen will assist in the transition to new leadership, the board is actively pursuing a suitable replacement, anticipating that the change will ultimately be beneficial for the company's shareholders. Despite the leadership change, Novo Nordisk insists that its strategic direction remains intact, aiming for recovery as it adapts to the evolving market landscape. The company continues to grapple with public sentiment linked to disappointing trial results for its next-generation obesity treatment, CagriSema, and external pressures from compounded drug markets that have encroached on Wegovy's sales in the U.S.