FRANKFURT, Germany (AP) — Pharmaceutical company Novo Nordisk A/S, maker of blockbuster weight loss drug Wegovy, said Friday its CEO was stepping down by “mutual agreement” with the company’s board of directors, citing “recent market challenges” and a steep decline in the company’s share price.
Lars Fruergaard Jorgensen’s departure comes a week after the company downgraded its sales and profits forecast, and follows a more than 50% decline in the company’s shares since mid-2024.
The company said May 7 that Wegovy sales in the U.S. had been undercut by cheaper replica drugs produced by so-called compounding pharmacies using active ingredients of patented drugs in case of shortage. The Food and Drug Administration, the U.S. drug regulator, has said however that the shortages have eased and the replicas will have to cease in the coming months.
On Sunday a study was published in the New England Journal of Medicine showing people lost more weight using competitor drug Zepbound, made by Eli Lilly of Indianapolis. The study, the first head-to-head comparison of the two, was funded by Lilly. Novo Nordisk’s share price is down 54% from its peak in June 2024. Its U.S.-listed shares fell another 3% in premarket trading Friday.
The company, headquartered in Bagsvaerd, Denmark, praised a “significant growth journey and transformation” led by Jorgensen during his eight years as CEO.
“The 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,” the company said in a statement. The board and Jorgensen “have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders.”
Jorgensen will continue as CEO “for a period” to support a smooth transition.
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
