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Novo Nordisk CEO Lars Jorgensen testifies prior to a Senate Health, Education, Labor, and Pensions Committee listening to on U.S. costs for the load loss medicine Ozempic and Wegovy, on Capitol Hill in Washington, U.S., September 24, 2024.
Piroschka Van De Wouw | Reuters
Novo Nordisk stated Friday that CEO Lars Fruergaard Jørgensen is stepping down because the Wegovy maker seeks to restore its unwell fortunes amid expanding festival.
The Danish pharmaceutical large stated Jørgensen, who used to be on the helm for 8 years, would stay in his publish “for a period to support a smooth transition to new leadership.” It added that the seek for a successor used to be ongoing and a press release could be made in the end.
Novo Nordisk stocks closed 1.8% decrease Friday. Meanwhile, stocks of rival weight problems drug maker Eli Lilly had been 1.7% upper following the announcement.
The resolution comes as Novo Nordisk’s inventory worth has taken a battering over the last 12 months amid higher festival within the ballooning weight problems drug marketplace and disappointing trial effects for its next-generation therapies.
The corporate’s percentage worth is lately down by means of greater than 50% for the reason that center of 2024.
Board Chairman Helge Lund stated discussions to interchange Jørgensen were ongoing for the previous a number of weeks between Novo Nordisk and the Novo Nordisk Foundation, which controls the company, in line with Reuters.
Reuters one by one reported Jørgensen as telling Danish broadcaster TV2 that he used to be best knowledgeable very lately and that he didn’t see the verdict coming.
“Novo Nordisk’s strategy remains unchanged, and the Board is confident in the company’s current business plans and its ability to execute on the plans,” Lund stated in a remark saying the verdict.
“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 corporate stated in a remark.
In reference to the exchange, the corporate stated that Lars Rebien Sørensen, former Novo CEO and present chair of the Novo Nordisk Foundation, will sign up for Novo Nordisk’s board, first of all as an observer.
Novo remaining week reported lower-than-expected first-quarter gross sales of its flagship Wegovy weight problems drug and trimmed its full-year gross sales expansion forecast amid higher festival from compounded drug markets within the U.S.
“Compounders took a part of our business away,” Jørgensen advised CNBC’s Charlotte Reed.
The corporate however stated that it anticipated gross sales to strengthen in the second one part of the 12 months as the provision of copycat compounded medicine is phased out after the Food and Drug Administration ended its drug scarcity ruling.
Novo has in the meantime struggled to shake unfavorable sentiment following a sequence of disappointing trial effects for its next-generation weight problems drug candidate CagriSema. Jørgensen prior to now stated he used to be “very optimistic” concerning the potentialities for the remedy.
“From the data we have, CagriSema is the best product that has been tested out or is on the market, and we believe we can get those data even better.”
