Novo CEO Exits Amid Supply Concerns in the Obesity Drug Race
Lars Fruergaard Jørgensen will step down as Chief Executive of Novo Nordisk, the Danish pharmaceutical group has confirmed.
After eight years in charge and 34 with the company, Lars exits amid falling share prices, missed forecasts and pressure from the Novo Nordisk Foundation to refresh leadership.
He will remain in post until a successor is named. His departure comes just days after the company lowered its profit and sales forecasts for the first time since Wegovy launched four years ago.
Wegovy, once a market leader in the obesity drug space, has now been overtaken in US prescriptions by Zepbound, a rival product from Eli Lilly. The competition has contributed to Novo’s market value being cut in half, from a US$615bn peak in June 2024 to around US$310bn now.
In a statement, the company said: “Considering the recent market challenges, the share price decline and the wish from the Novo Nordisk Foundation, the Novo Nordisk Board and Lars Fruergaard Jørgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders.”
Supply chain struggles weigh on performance
One of the key issues facing Novo Nordisk is its supply chain. Soaring demand for both Ozempic and Wegovy has led to repeated shortages, especially for low-dose versions of Ozempic used off-label for weight loss.
Last year, the company notified the Therapeutic Goods Administration (TGA) and the Ozempic Medicine Shortage Action Group (MSAG) in Australia that it expected shortages to continue. Supply simply hasn't kept up with demand, much of it fuelled by media attention and off-label use.
The National Pharmacy Association (NPA) warned that these shortages could push people towards unregulated online sources, raising the risk of unlicensed or counterfeit medication.
Michael Shah, a Senior Analyst at Bloomberg Intelligence, said: “Jorgensen’s surprise departure from Novo Nordisk corroborates the perception that the company has lost ground to Eli Lilly in the obesity space. This includes underwhelming results for CagriSema as well as supply chain constraints and market challenges for Wegovy.”
Novo’s board Chair Helge Lund insisted the strategy remains unchanged, according to Reuters, despite the change in leadership. He added that discussions about succession have been ongoing for several weeks.
In another leadership change, Camilla Sylvest, previously EVP of Commercial Strategy and a close ally of Lars, stepped down last month.
Lars says the decision to part ways was unexpected. Speaking to Danish broadcaster TV2, he confirmed he had only been informed “very recently.”
In a post on LinkedIn, he writes: “This is not an easy post to write – not because I’m unsure of what to say, but because there is simply so much I’m grateful for… It’s been the privilege of a lifetime.”
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