Novo Nordisk, a pharmaceutical company of Blockbuster Wegovy maker Novo Nordisk, said Friday that its CEO is resigning with the company’s board of directors, citing “recent market challenges” and a sharp decline.
Lars Fruergaard Jorgensen’s departure has lowered its sales and profit forecasts and has dropped more than 50% as the company’s stock has fallen by more than 50% since mid-2024.
Wegovy sales in the United States have been cut, the company said on May 7 Cheaper replicas Production by so-called composite pharmacies using active ingredients of patented drugs. When there is no name branded drugs, they are relied on as alternatives. However, the FDA said the shortage has eased and replicas will be stopped in the coming months.
People have lost weight using Wegovy rival Zepbound, made by Wegovy rival Eli Lilly, a study published in the New England Journal of Medicine on Sunday. Eli Lilly funded the study. Novo Nordisk’s share price fell 54% from its June 2024 peak. Its listed shares fell another 3% in listing trading on Friday.
The company, based in Denmark-based Bagsvaerd, praised Jorgensen for leading Novo Nordisk to Novo Nordisk during his eight-year tenure as CEO.
“However, given the recent market challenges Novo Novers faces and the changes in the company’s share price development since mid-2024,” the company said in a statement. The board and Jorgensen “conclude together that it is in the best interest of the company and its shareholders to initiate the CEO succession.”
Jorgensen will continue to serve as CEO for a period of time to support a smooth transition.
