Novo Nordisk Ousts CEO as Ozempic Maker Faces Market Setback

In a surprising leadership shakeup, Danish pharmaceutical giant Novo Nordisk has dismissed CEO Lars Fruergaard Jørgensen as the company grapples with a significant market downturn and intensifying competition in the weight-loss and diabetes drug sectors.

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Jørgensen, who served as chief executive for eight years, had previously overseen a period of explosive growth, with the company’s valuation tripling and Novo Nordisk briefly becoming Europe’s most valuable public company. However, since mid-2024, the company has seen its market value slashed by over 50%, triggering concerns from shareholders and prompting a strategic re-evaluation.

Falling Fortunes Amid Blockbuster Success

Despite the blockbuster success of Ozempic and Wegovy—two of the company's flagship GLP-1 drugs used for diabetes and obesity—Novo Nordisk has faced mounting pressures. Supply constraints, underwhelming clinical trial results for pipeline drugs, and the emergence of lower-cost generics in the U.S. have all weighed heavily on investor confidence.

Additionally, rival pharmaceutical firms, including Eli Lilly, have made rapid strides in launching competing therapies, eating into Novo Nordisk’s once-dominant market share.

Leadership Crisis

Sources close to the company report that the Novo Nordisk Foundation, which controls a majority stake, has recently taken a more active role in corporate governance. Chairman Lars Rebien Sørensen, himself a former CEO, is said to have led the internal push for change amid growing concern over strategic direction and investor relations.

The company also downgraded its full-year sales and profit forecasts earlier this month, citing persistent challenges in maintaining production capacity and global distribution, especially in North America.

Market Reaction and What Comes Next

Following the announcement, Novo Nordisk shares fell by 4.4% in Copenhagen trading. Analysts note that while the company’s fundamentals remain strong—given the continued global demand for obesity treatments—a clear strategic path forward is urgently needed to reassure investors and maintain momentum.

Novo Nordisk has yet to name a successor, stating only that a global executive search is underway. In the interim, Chief Operating Officer Mads Krogsgaard Thomsen will assume leadership responsibilities.

Jørgensen’s departure marks a pivotal moment for Novo Nordisk. As competition tightens and the weight-loss drug market rapidly evolves, the company must now redefine its strategy to stay at the forefront of innovation and patient care.