By DAVID McHUGH, Related Press Enterprise Author
FRANKFURT, Germany (AP) — Danish pharmaceutical firm Novo Nordisk A/S, maker of blockbuster weight reduction drug Wegovy, stated Friday its CEO was stepping down by “mutual agreement” with the corporate’s board of administrators, citing “recent market challenges” and a steep decline within the firm’s share worth.
Lars Fruergaard Jorgensen’s departure comes every week after the corporate downgraded its gross sales and income forecast, and follows a greater than 50% decline within the firm’s shares since mid-2024. Shares had skyrocketed after the introduction of Wegovy and diabetes medication Ozempic, that are each based mostly on the identical fundamental ingredient, semaglutide.
On the peak, the corporate’s market capitalization – or the mixed worth of all its shares – exceeded Denmark’s annual gross home product and made it Europe’s Most worthy firm, a title it has since misplaced to software program maker SAP.
The corporate stated Might 7 that Wegovy gross sales within the U.S. had been undercut by cheaper duplicate medicine produced by so-called compounding pharmacies utilizing lively components of patented medicine in case of scarcity. The Meals and Drug Administration, the U.S. drug regulator, has stated nonetheless that the shortages have eased and the replicas must stop within the coming months.
Novo additionally benefited just lately from a CVS Well being resolution to make Wegovy the popular choice on its customary formulary, or record of lined medicine. CVS Well being runs prescription drug protection for employers and different massive shoppers as one of many largest pharmacy profit managers within the U.S.
On Sunday a examine was revealed within the New England Journal of Medication exhibiting folks misplaced extra weight utilizing competitor drug Zepbound, made by Eli Lilly of Indianapolis. The examine, the primary head-to-head comparability of the 2, was funded by Lilly. Novo Nordisk’s share worth is down 54% from its peak in June 2024. Its U.S.-listed shares fell one other 3% in morning buying and selling Friday.
The corporate, headquartered in Bagsvaerd, Denmark, praised a “significant growth journey and transformation” led by Jorgensen throughout his eight years as CEO.
“The changes are, however, made in light of the recent market challenges Novo Nordisk has been facing, and the development of the company’s share price since mid-2024,” the corporate stated in an announcement. The board and Jorgensen “have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders.”
Jorgensen will proceed as CEO “for a period” to help a easy transition.
Initially Revealed: Might 16, 2025 at 9:57 AM EDT
