Novo Nordisk has announced that it will replace its current Chief Executive Officer, Lars Fruergaard Jorgensen, amid a significant drop in the company’s stock value and intensifying competition in the weight-loss and diabetes drug markets. The surprise move marks a pivotal moment for the pharmaceutical giant, known for blockbuster drugs Ozempic and Wegovy.
The company stated that Jorgensen will remain in his role while the board actively searches for his successor. This change comes as Novo Nordisk’s market dominance faces growing pressure from rival drugmakers, particularly Eli Lilly, which has made strides with its own weight-loss treatments.
During Jorgensen’s tenure, which began in 2017, Novo Nordisk’s performance skyrocketed. Sales, profits, and share prices nearly tripled under his leadership. He also oversaw the successful launch of Ozempic in 2018, which — along with Wegovy — generated over $24 billion in revenue last year alone.
However, investor confidence has sharply declined in recent months. Novo shares, which peaked at $148.15 last June, have now fallen over 56%, closing at $64.38 as of last Friday. This drop has been fueled by fears over Novo’s competitive edge in the face of newer, possibly more effective drugs.
According to Investor’s Business Daily, the downturn is not just about financials. The publication highlighted how Eli Lilly’s newer treatments — Mounjaro and Zepbound — are outperforming Ozempic and Wegovy in prescription volume and weight-loss results. Furthermore, companies like Viking Therapeutics, Amgen, AstraZeneca, and Roche are aggressively developing rival medications, adding further pressure on Novo Nordisk’s market share.
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In response, Novo is doubling down on its innovation pipeline. The company has recently signed deals with Septerna, Lexicon Pharmaceuticals, and The United Laboratories International for the development and licensing of next-generation obesity treatments. Notably, CVS Caremark selected Wegovy as its preferred drug over Zepbound, and Hims & Hers Health has begun offering Wegovy through a membership model at $599 per month.
Despite these efforts, analysts expect Eli Lilly’s Mounjaro to overtake Ozempic in sales next year. Long-term forecasts suggest Mounjaro could generate $34.5 billion by 2030 compared to $23.5 billion for Ozempic. Even Wegovy’s current advantage over Zepbound may erode, as recent studies suggest Zepbound leads to significantly higher average weight loss.
Adding to the concerns is Novo’s own revised outlook. The company now anticipates only 13% to 21% sales growth for 2025, down from earlier projections of 16% to 24%, citing issues like unlawful compounding of its drugs and increased competition.
Financial experts believe the leadership change adds further complexity. CFRA analyst Wan Nurhayati noted that this transition introduces “management risk to existing challenges,” which include both regulatory hurdles and a more aggressive competitive landscape. While Nurhayati still sees Novo as a near-term market leader, she cautions that recent developments have placed the company at a critical crossroads.
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Disclaimer: The information presented in this article is based on publicly available sources and is intended for informational purposes only. It does not constitute financial, investment, or medical advice. Readers are advised to consult with relevant professionals before making any decisions based on this content.
