In a significant leadership change for the pharmaceutical giant, Novo Nordisk has announced that CEO Lars Fruergaard Jørgensen will step down following a mutual agreement with the company's board of directors. Jørgensen, who has led the Danish drugmaker since January 2017, is expected to remain in his position while the search for his successor is underway.
The announcement comes at a pivotal moment for Novo Nordisk, which has experienced tremendous growth under Jørgensen's leadership but now faces mounting market pressures and intensifying competition in the lucrative GLP-1 space.
Market Challenges and Strategic Realignment
The leadership transition follows a period of declining share price and competitive setbacks. Novo Nordisk's stock has dropped significantly from approximately $133 a year ago to around $66 currently. This decline coincides with recent results from the head-to-head Phase IIIb SURMOUNT-5 trial, which demonstrated that Eli Lilly's tirzepatide (Zepbound) outperformed Novo's semaglutide (Wegovy) in sustained weight reduction over 72 weeks in adults with obesity or overweight with comorbidities.
The Novo Nordisk Foundation, which holds majority voting control through Novo Holdings with 28% of share capital and 77% of voting rights, has reportedly advocated for an accelerated CEO succession and greater board involvement in response to these challenges.
"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," said Helge Lund, Chair of Novo Nordisk's board, in the company's official statement.
Jørgensen's Legacy of Growth and Innovation
During his eight-year tenure as CEO, Jørgensen oversaw Novo Nordisk's transformation from a diabetes-focused company to a broader healthcare leader. Under his leadership, the company fortified its position in diabetes care, established itself as a pioneer in obesity treatment, and expanded into other areas of serious chronic diseases.
"Serving as Novo Nordisk's CEO for the past eight years has been a privilege and an experience that I will always cherish," said Jørgensen. "I am proud of the results I have helped create together with my leadership team, the Board, and the thousands of employees who work every day to drive change to defeat serious chronic diseases."
The company has grown to employ approximately 77,400 people across 80 countries, with products marketed in around 170 countries worldwide.
Foundation's Increased Involvement in Governance
As part of the transition, Lars Rebien Sørensen, who served as Novo Nordisk's CEO from 2000 to 2016 and currently chairs both the Novo Nordisk Foundation and Novo Holdings A/S, will begin attending Novo Nordisk's board meetings as an observer effective immediately. The company plans to nominate Sørensen for election as a full board member at the 2026 Annual General Meeting.
"The Board appreciates the perspectives and guidance provided by the Novo Nordisk Foundation through the Board members representing the Foundation and looks forward to working with Lars Rebien Sørensen on the Board," said Lund, signaling a potentially closer alignment between the company and its controlling foundation.
Recent Performance and Future Outlook
Despite the leadership change, Novo Nordisk recently reported strong Q1 2025 financial results, with sales rising 19% (18% at constant exchange rates) to approximately $11.6 billion and operating profit increasing 22% to approximately $5.8 billion.
The company's diabetes and obesity care segment grew 21% to $10.9 billion, driven by a 67% surge in obesity care sales and continued momentum in GLP-1 diabetes therapies. However, Novo Nordisk has revised its 2025 outlook downward due to slower-than-expected branded GLP-1 uptake in the United States, attributed to compounded GLP-1 products and rising competition.
R&D Pipeline Advances
On the research and development front, Novo Nordisk continues to advance its pipeline. The company recently completed the pivotal REDEFINE 2 trial for CagriSema, which demonstrated 15.7% weight loss in adults with obesity and type 2 diabetes. Regulatory filing for this treatment is expected in Q1 2026.
Additionally, the company has submitted oral semaglutide 25 mg for obesity to the FDA and semaglutide 2.4 mg for metabolic dysfunction-associated steatohepatitis (MASH) to both the FDA and European regulators, highlighting its continued focus on expanding its treatment portfolio for metabolic conditions.
The company now expects sales growth of 13%-21% and operating profit growth of 16%-24% at constant exchange rates for 2025, reaching an estimated $11.3 to $13.1 billion in sales, with operating profit ranging from approximately $5.4 to $6.3 billion.
A conference call for investors is scheduled for May 16, 2025, where further details about the leadership transition and future plans are expected to be discussed.
