Novo Nordisk CEO to resign while competition weighs the course of action

Novo Nordisk Friday, CEO Lars Fruergaard Jørgensen was moving while the manufacturer of Wegovy seeks to revive his sick fortune in the middle of increasing competition.

The Danish pharmaceutical giant said that Jørgensen would remain in his article “for a period to support a smooth transition to a new leadership”. He added that the search for a replacement was underway and that an ad would be made in due time.

Novo Nordisk shares have been negotiated 3%last time. Meanwhile, the actions of rival obesity Maker Eli Lilly increased by 1.6% in prior trading.

The decision comes as the course of NOVO Nordisk’s action has taken blows in the past year in the middle of increased competition in the balloon obesity drug market and disappointing test results for its new generation treatments.

The company’s share price has been down more than 50% since the middle of 2024.

“Novo Nordisk’s strategy remains unchanged, and the board of directors is confident in the current business plans and its ability to execute the plans,” said President Helge Lund in a statement.

“However, changes are made in light of recent market challenges that Novo Nordisk has faced and the development of the company’s action since mid-2010,” said the company in a statement.

As part of the change, the company said that the president of the Novo Nordisk Foundation, Lars Rebien Sørensen, would join the Novo Nordisk board of directors, initially as an observer.

Last week, last week pointed out sales in the first quarter lower than those expected from its drug’s flagship obesity of Wegovy and reduced its forecasts for growth in annual sales in a context of increased competition from the medical markets composed in the United States

“The compounds have taken a share of our business,” Jørgensen told Charlotte Reed from CNBC.

The company nevertheless said that it expected sales to improve during the second half, as the availability of copy -composed drugs is deleted after the Food and Drug Administration (FDA) has ended its decision as a shortage of drugs.

Novo has struggled to shake up a negative feeling following a series of disappointing test results for his drug candidate for the new generation Cagrisema. Jørgensen previously declared that he was “very optimistic” as to the prospects for treatment.

“According to the data we have, Cagrisema is the best product that has been tested or is on the market, and we think we can further improve this data.”