Novo Nordisk’s long-time CEO Lars Fruergaard Jørgensen is stepping down after eight years at the helm, as the Danish pharmaceutical giant faces mounting market pressures.
The company’s share price has plunged over 50% since mid-2024, driven by intensifying competition in the obesity drug market and investor concerns about growth. Jørgensen will remain in place until a successor is found, ensuring a smooth leadership transition.
Meanwhile, Lars Rebien Sørensen, former CEO and chair of the Novo Nordisk Foundation, will join the board as an observer, with plans for formal election in 2026.
Jørgensen’s tenure saw Novo Nordisk transform into a global powerhouse, with sales of its GLP-1 drugs Ozempic and Wegovy skyrocketing. However, rival Eli Lilly’s Zepbound has overtaken Wegovy in United States prescriptions. Compounded versions of semaglutide have further eroded Novo’s market dominance. The company recently cut its full-year sales forecast, adding to investor unease. Analysts speculate that Novo may pursue acquisitions or strategic pivots to regain momentum.
For investors, the leadership shake-up signals uncertainty, but also potential opportunity. Novo Nordisk remains a dominant force in diabetes and obesity treatment, but its growth trajectory is under scrutiny. The Novo Nordisk Foundation, which controls the company’s voting majority, has pushed for greater board influence, raising questions about future governance and strategic direction. Investors will be watching closely for signs of stabilisation or further disruption.
Novo’s next steps will be critical to its market position. With competition heating up and regulatory challenges looming, the company must reassure investors and recalibrate its strategy. The search for a new CEO will be pivotal — whoever takes the reins will need to navigate fierce industry competition, restore investor confidence, and drive innovation in an evolving pharmaceutical landscape.
At the time of writing, the Novo Nordisk A/S (CPH: NOVO-B) share price was DKK426.40, down 0.15 (0.035%) today. It has a market cap of approximately 1.45 trillion (A$339.816 billion).
