Novo Nordisk Ousts CEO as U.S. Rivals Gain Ground, Drug Pipeline Disappoints
Denmark’s pharmaceutical giant navigates leadership shake-up after Wegovy sales falter and investor confidence wanes.
Lars Fruergaard Jorgensen, outgoing CEO of Novo Nordisk.
COPENHAGEN, May 16, 2025 — Novo Nordisk removed CEO Lars Fruergaard Jorgensen on Friday, citing eroding market confidence and rising pressure from U.S. competitors in the fast-growing obesity drug segment.
The decision follows a sharp decline in Novo’s share price over the past year and growing scrutiny over its drug pipeline. Despite the company’s meteoric rise on the back of weight-loss drugs Wegovy and Ozempic, its dominance has been challenged by Eli Lilly, whose Zepbound injection has overtaken Wegovy in U.S. prescriptions since March.
"The changes are 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 Novo Nordisk Foundation, which controls the company through its investment arm, called for Mr. Jorgensen’s exit during an April board meeting. A company spokesperson confirmed the timing.
Lars, who has led Novo Nordisk since 2017, said he was not anticipating the board’s decision. “I did not see this coming,” he told Reuters, adding that he was only recently informed.
The announcement comes days after the company cut its annual sales and profit outlook — the first such downgrade since Wegovy’s launch in 2021. Lars had projected a rebound in the latter half of the year, particularly in the U.S. market, but investor skepticism persisted. Shares fell 1.8% following the news.
“He was leading the company for eight years and was in my opinion extremely successful,” said Lukas Leu, portfolio manager at Bellevue Asset Management.
Chairman Helge Lund attempted to calm concerns during a conference call, saying the company's strategy remained unchanged. Analysts, however, remained unconvinced.
“The way we know Novo Nordisk is that normally you have patience when you're on the right track,” said Danske Bank’s Carsten Lonborg Madsen. “It just feels like there's something that has gone pretty wrong here.”
Lars will continue in his role until a successor is named. Former CEO Lars Rebien Sørensen, now chair of the Novo Nordisk Foundation, will return to the board as an observer ahead of an expected appointment at the next shareholder meeting.
Lilly’s shares rose 2.6% on the day. Analysts say Zepbound’s stronger weight-loss outcomes and recent U.S. trial approvals have positioned Lilly as a more aggressive contender in the obesity drug market — one projected to be worth $150 billion by the early 2030s.
Novo has also been hindered by the temporary availability of compound versions of Wegovy, though the company expects regulatory pushback to support a return to higher sales volumes later this year.
Lars, 58, led Novo Nordisk through a strategic pivot to focus on obesity treatments, tripling sales and delivering a 300% return to shareholders, including dividends, during his tenure, according to LSEG data.
Yet the timing of his departure coincides with broader uncertainty. U.S. President Donald Trump has threatened new tariffs on pharmaceutical imports and is pressing for lower prescription prices, prompting concern from Denmark’s business minister over potential repercussions for Danish drugmakers.
Mikael Bak, CEO of the Danish Shareholders’ Association, noted investor surprise but acknowledged the move may reflect a need for a different leadership style in today’s volatile environment.
“However, it is not entirely unexpected that a company of Novo Nordisk's calibre may need a different type of leader when facing intense global competition and stormy weather,” he said.
At its peak in June 2024, Novo Nordisk was valued at $615 billion, making it Europe’s most valuable listed company. Today, that valuation has dropped by half, down to about $310 billion.
Investor confidence has been further shaken by underwhelming trial results for the company’s next-generation obesity treatment, CagriSema, and concerns over its longer-term prospects as patents on its flagship drugs expire in 2032.
Camilla Sylvest, a key executive and close aide to Lars, resigned last month without offering a reason.
Novo Nordisk has not announced a timeline for naming a new CEO. Until then, the company remains under scrutiny as it attempts to steady its footing amid intensifying competition and market uncertainty.
It just feels like there's something that has gone pretty wrong here.
