From Yahoo Finance: 2025-05-16 09:57:00

Novo Nordisk CEO Lars Fruergaard Jørgensen will step down after the company’s share price fell 50% in the last year. The Novo Nordisk Foundation, which controls the company’s voting majority, pressured the move. Jørgensen, who joined Novo in 1991, will stay on during the transition period.

Novo Nordisk became Europe’s most valuable company thanks to blockbuster drugs Ozempic and Wegovy. Ozempic alone grew into a $13 billion-a-year drug since its 2017 debut, while Wegovy became a $4.5 billion blockbuster in just two years. Demand was so high that Novo had to pause advertising in 2023 due to supply shortages.

Shares of Novo Nordisk fell about 3% after Jørgensen’s resignation announcement. The company’s fortunes have shifted due to mounting competition, underwhelming trial results, and investor skepticism. Novo Nordisk’s Q1 report lowered growth expectations, further spooking markets with a 5% decline in Copenhagen trading.

The Novo Nordisk Foundation aims for more control, with former CEO Lars Rebien Sørensen attending board meetings immediately. Plans for formal election in 2026 are in place. Eli Lilly stock rose 1.3% in response to Novo’s announcement. Novo’s shares fell around 5% in Copenhagen trading.

Read more: Novo Nordisk’s CEO is out after the Ozempic maker’s stock dropped 50% in a year