Novo Nordisk ousts chief executive

(Sharecast News) - The chief executive of Ozempic-maker Novo Nordisk is to leave the company, it was announced on Friday, just days after the Danish biotech slashed its full-year forecasts. The pioneering obesity specialist, which also makes Wegovy, said Lars Fruergaard Jorgensen was stepping down by mutual agreement after eight years in the role.

In addition, Lars Rebein Sorensen, chair of the Novo Nordisk Foundation, will join the board as an observer ahead of seeking full membership at the 2026 annual general meeting.

The changes have been led by the foundation, which owns a majority stake in the business through Novo Holdings.

In a statement, Novo Nordisk said sales, profits and the share price had nearly tripled during Jorgensen's time at the helm.

But it continued: "The [executive] 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.

"Considering the recent market challenges, the share price decline and the wish from the foundation, the board and [Jorgensen] have jointly concluded that initiating a chief executive succession is in the best interests of the company and its shareholders."

Last week, Novo Nordisk cut annual sales and profits forecasts, after being hit by a surge in cheap competition, known as compounds, in the US.

Pharmacies are allowed to temporarily make and sell the replica drugs during shortages.

Longer term, however, and investors are also concerned that Novo Nordisk is losing ground to US rival Eli Lilly, which owns rival obesity jab Mounjaro. Recent trials for next generation drugs have also been disappointing.

Novo Nordisk now expects sales growth to come in between 13% and 21% in the current year, compared to earlier guidance for between 16% and 24%.

Forecasts for operating profit growth were cut to between 16% and 24% from between 19% and 27%.

The share price, meanwhile, has tumbled 54% over the last year alone. As at 1400 BST, the stock was down 2%.

Jorgensen said he was "proud of the results I have helped create together with leadership team, the board and the thousands of employees, who work every day to drive change to defeat serious chronic diseases".

Jorgensen will continue as chief executive for an unspecified period, to help with the leadership transition, Novo Nordisk confirmed.