Novo Nordisk Shake-Up: CEO Ousted Amid Weight Loss Market Setback

Lars Fruergaard JørgensencEO

I did not see this coming.

Jorgensen, 58, expressed shock at the decision to fire him, adding

We believe this reflects decisive action from the Novo Nordisk Foundation.

But analysts at JP Morgan said yesterday

Dave Ricks knows how to meet this moment. He understands when to push and when to pull back,

said BMO analyst Evan Seigerman, referring to the CEO's familiarity with U.S. politics

The changes are 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,

Novo said in its statement

He was leading the company for eight years and was, in my opinion, extremely successful,

Lukas Leu, a portfolio manager at Bellevue Asset Management, told Reuters

It just feels like there’s something that has gone pretty wrong here,

he said on the call

The way we know Novo Nordisk is that normally you have patience when you’re on the right track, and then you let things move in the right direction once you have the strategy right,

he 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.”

The company said

During his eight-year tenure as CEO, Novo Nordisk's sales, profits and share price have almost tripled,

Novo Nordisk said

Lars Fruergaard JørgensencEO

We are actively focused on preventing unlawful and unsafe compounding and on efforts to expand patient access to our GLP-1 treatments,

Jorgensen said in a statement in early May

Helge Lundchairman

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 said in a statement