Novo Nordisk A/S ousted Chief Government Officer Lars Fruergaard Jorgensen because the drugmaker struggles with rising competitors for its weight problems remedy Wegovy that’s weighing on the share value.
The Danish firm stated Jorgensen is leaving by mutual settlement with the board, although he’ll proceed as chief “for a interval to assist a easy transition to new management.” A seek for a brand new chief has begun, the corporate stated in an announcement Friday.
The transfer follows a 53% decline within the firm’s share value over the previous 12 months because it has confronted setbacks in trials of recent weight-loss medication and rising competitors from Eli Lilly & Co. The shares fell about 2% in noon buying and selling Friday.
“Contemplating the current market challenges, the share value decline, and the want from the Novo Nordisk Basis, the Novo Nordisk Board and Lars Fruergaard Jorgensen have collectively concluded that initiating a CEO succession is in one of the best curiosity of the corporate and its shareholders,” the corporate stated.
The inspiration, a charitable group that controls the drugmaker, began a dialog with Novo’s board “on the deserves of an accelerated CEO succession,” Novo stated.
Novo was first to market with Wegovy and its sister drug Ozempic for diabetes, however the Danish firm has ceded market share to Lilly. Its rival drug Zepbound now has the lead in weight problems prescriptions, and Lilly’s diabetes model of the drug, Mounjaro, is on observe to meet up with Ozempic as properly by subsequent August, in response to BMO Capital Markets.
Jorgensen has been with Novo since 1991 and was appointed CEO in January 2017. The corporate’s market capitalization has greater than tripled throughout his tenure.
This story was initially featured on Fortune.com
