Novo Nordisk CEO steps down in surprise move as 'market challenges' weigh on obesity drugmaker

Novo Nordisk (NVO) CEO Lars Jørgensen is stepping down from his station aft 8 years successful the role, during which helium pb the institution to an all-time precocious successful the markets.

Despite being the first-to-market successful the latest procreation of GLP-1 drugs, notably with its well-known diabetes cause Ozempic and value nonaccomplishment cause Wegovy, Novo has precocious faced respective headwinds, causing the banal to suffer.

That includes missing income estimates successful archetypal 4th earnings this year.

Those headwinds contributed to the determination Friday, the institution said successful a statement.

"Considering the caller marketplace challenges, the stock terms decline, and the privation from the Novo Nordisk Foundation, the Novo Nordisk Board and Lars Fruergaard Jørgensen person jointly concluded that initiating a CEO succession is successful the champion involvement of the institution and its shareholders," the connection said.

Jørgensen, who has been with the institution since 1991, volition enactment connected done the modulation arsenic the institution searches for a caller leader.

Novo's banal was trading down much than 5% successful premarket trading Friday.

In June 2024, the institution was trading ata precocious of much than $140 per share, and the banal is up astir 107% successful the past 5 years.

Novo had to upgrade its guidance 3 times that year. It was wherefore Yahoo Finance named it the 2023 Company of the Year.

In June 2024, the institution was trading astatine a precocious of much than $140 per share, and the banal is up astir 107% successful the past 5 years.

After years of being known for its insulin and diabetes products, Novo produced what immoderate person deemed an accidental blockbuster successful the signifier of Ozempic, a diabetes attraction that showed greater value nonaccomplishment than immoderate anterior treatment. It subsequently released Wegovy to people obesity.

The determination has been credited with changing the communicative and stigma astir obesity.

But occupation for the institution began brewing erstwhile its popularity outstripped its supply, and the institution began to look stiff contention with Eli Lilly (LLY).

Despite caller efforts, similar partnering with telehealth steadfast Hims & Hers (HIMS), and sealing an exclusive deal for CVS's (CVS) cause formulary — Wall Street appears unimpressed.

Lilly followed Novo with akin drugs, for some the diabetes and obesity categories, wrong a year. With greater value nonaccomplishment potential, Lilly's drugs besides soon became popular, and the contention began.

Both companies suffered shortages of their drugs, spurring a robust— and profitable — copycat marketplace for compounding pharmacies. The FDA has since taken some companies' drugs disconnected the shortage list, but the compounders look to beryllium determined to proceed selling copycats wherever they can.