Novo Nordisk’s chief government, Lars Fruergaard Jørgensen, is stepping down by “mutual settlement” with the corporate’s board.
In an announcement, Novo Nordisk stated that discovering a brand new CEO is in the most effective pursuits of the corporate and its shareholders contemplating “latest market challenges, the share value decline, and the want from the Novo Nordisk Basis,” which has a controlling curiosity within the Danish pharma group.
Shares in Novo Nordisk have misplaced round half their worth within the final 12 months, after a stellar rise – fuelled by burgeoning gross sales of its GLP-1 agonist-based therapies for diabetes and weight problems – which at one level made it the biggest listed firm in Europe.
That standing fell by the wayside after the gross sales momentum for the merchandise was pegged again by shortages, which allowed a thriving market in compounded variations of its medicine to spring up within the US, in addition to competitors from rivals, notably Eli Lilly whose weight problems drug Zepbound (tirzepatide) outperformed Novo Nordisk’s Wegovy (semaglutide) in a head-to-head scientific trial.
Wegovy reached the market a lot earlier, however Zepbound is catching up quick, and the 2 merchandise had first-quarter revenues of $2.64 billion and $2.31 billion, respectively. In its newest monetary replace, Novo Nordisk reduce gross sales and earnings forecasts for the 12 months as a result of lower-than-expected penetration of branded GLP-1 remedies within the US and the affect of compounding.
On the identical time, there have been some disappointment with Novo Nordisk’s new technology of weight-loss medicine, together with late-stage candidate CagriSema (semaglutide and cagrilintide), as Lilly has reported optimistic knowledge with its pipeline, together with oral GLP-1 drug orforglipron.
Jørgensen has agreed to remain on whereas the seek for a successor is carried out, and the chair of the Novo Nordisk Basis and former Novo Nordisk CEO, Lars Rebien Sørensen, is becoming a member of the pharma firm’s board, initially as an observer.
“I’m happy to have the ability to contribute my expertise to the board of Novo Nordisk,” stated Sørensen, who stated his appointment mirrored a want by the Novo Nordisk Basis to get nearer to the drugmaker’s board.
“We additionally suppose that the timing is correct for a brand new profile as CEO of the corporate,” he added. “There have been some market challenges not too long ago, which the board and government management have taken actions to deal with. I stay up for contributing to this and to working with your complete Novo Nordisk board.”
