Novo Nordisk Ousts Boss as Ozempic Maker Battles Battles Blump
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Novo Nordisk expels CEO Lars Fruergaard Jørgensen, a competitive struggle for Ozempic, a maker of pioneering obesity drugs, with profit growth falling, market share falling and stock prices falling.
The drugmaker's stock has fallen more than 50% over the past 12 months, causing it to lose its royal family as Europe's largest publicly traded company, which hit a peak of $65 billion last year.
Investors are worried that its obesity and diabetes drugs have lost their foundation for our rival Eli Lilly and are disappointed with the results of trials for the next generation of drugs.
“In light of recent market challenges, the decline in stock prices of Novo Nordisk Foundation, Novo Nordisk Board and Lars Fruergaard Jørgensen and the desire to jointly conclude that launching CEO succession is the best interest of the company and its shareholders,” Novo said.
Last week, the company cut sales and profit forecasts for the year, attributed to the rapid expansion of replicas in the United States. When drugs are short, these cheap alternatives (sold by so-called compound pharmacies) are temporarily allowed.
Novo said sales growth is now expected to be 13% to 21% this year, while the ongoing exchange rate is 16% to 24%. It forecasts operating profit to grow by 16% to 24%, compared with the previous 19% to 27%.
Jørgensen led the drugmaker for eight years, during which the stock price was thrilled with the excitement of Wegovy and Ozempic products.
Novo pointed out in a statement on Friday that the stock price on the company “has been since mid-2024”. In late December, the company announced that its subsequent obesity drug, Cagrisema, missed its target in late-stage clinical trials, with stock falling 21% in a day in late December.
Novo said it will announce it is looking for a new CEO “in due time.” It added that Jorgensen will continue to serve for a while to ensure a smooth transition.
The Novo Nordisk Foundation, the majority owner of the company through Novo Holdings, is adding its representation on the board. Foundation Chairman Lars Rebien Sørensen will immediately begin attending the board meeting.
Jorgensen said the results he produced in the company with his colleagues are “proud of it” and “are working hard every day to push change to defeat severe chronic diseases.”
Novo stock fell, down 4.4%.
Novo's chairman Helge Lund is also the chairman of BP Professional BP, who faces pressure from huge activists from the U.S. hedge fund Elliott Management.