Lars Fruergaard Jørgensen, the CEO of Novo Nordisk, announced his resignation on Friday as the Wegovy manufacturer looks to turn around its struggling business in the face of growing competition.
Jørgensen, who led the company for eight years, will stay on “for a period to support a smooth transition to new leadership,” according to the Danish pharmaceutical giant. It further stated that an announcement will be made after the search for a replacement was complete. On Friday, Novo Nordisk’s stock ended the day 1.8% down. Following the announcement, shares of Eli Lilly, a competitor in the obesity medicine market, increased by 1.7%.
The decision was made at a time when Novo Nordisk’s stock price has plummeted over the past 12 months due to dismal trial results for its next-generation medicines and heightened competition in the rapidly expanding obesity therapy industry.
Since the middle of 2024, the company’s share price has dropped by more than 50%. According to Reuters, Novo Nordisk and the Novo Nordisk Foundation, which owns the company, have been in talks for some weeks to replace Jørgensen, according to board chairman Helge Lund.
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