Novo Nordisk, the company of Wegovy and Ozempic, suddenly expelled its CEO fears that the company has lost its foundation in the popular weight loss drug market.

The company's market value has dropped by about half over the past year as competitors such as Eli Lilly gains alternatives to its competitors.

Lars Fruergaard Jørgensen has been leading the company since 2017, overseeing its rise of anti-obesity drugs, and it has become the most valuable company in Europe.

He will continue to take on this role until a successor is appointed.

The company said its controlling shareholder, Novo Nordisk Foundation, has been talking about replacing Mr Jørgensen in recent weeks due to “market challenges” and its share price decline.

"In light of recent market challenges, share price declines and the desire of the Novo Nordisk Foundation, Novo Nordisk Board and Lars Fruergaard Jørgensen jointly concluded that the CEO’s succession to the best interests of the company and its shareholders," the company said in a statement.

As part of the change, the company said its former CEO Lars Rebien Sørensen now leads the Novo Nordisk Foundation, and he will also play a bigger role in the company's board of directors.

Mr. Jonson started at the company in 1991. In an interview with Danish broadcaster TV2, he said he did not see the decision coming.

The move also caught many analysts off guard.

On a call with board chairman Helge Lund, they pressed him to see other factors behind the decision and whether it demonstrates a lack of confidence in the company's strategy.

"The stock price decline is not something he can control, so I wonder if you can provide more details about this change," said Carsten Lonborg Madsen, an analyst at Danske Bank. Leaders start from the beginning.

"This is something that has been happening since mid-2024," he said. "I feel like there is something wrong here."

"I'm sorry for the point, but I have to say I'm confused about the discussion," Seamus Fernandez of Guggenheim Securities said later. "If I were the next potential CEO, I would be very nervous to take on this role."

Mr Lund admitted that the decision could be sudden and pointed out that until now, it has been expecting a slower succession schedule.

He said the company will announce "proper time" new leaders, which does not indicate a change in its strategy or plan.

“There is no more behind it,” he said.

The company's stock fell further after the company's announcement.

Novo Nordisk's sales have more than doubled since 2021. But growth has been slowing.

Last year, sales rose 25% to more than 290 billion Denmark Krona (£33 billion), while profits rose by about 20%.

The company forecasts sales growth between 13% and 21% earlier this month and operating profit growth between 16% and 24%.