Novo Nordisk CEO Lars Fruergaard Jørgensen to step down after eight years

Novo Nordisk announced on May 16, 2025 that CEO Lars Fruergaard Jørgensen will step down after eight years running the company, which makes the diabetes drug Ozempic and the obesity drug Wegovy ^[1]. Novo described the move as a mutual agreement with its board, and said Jørgensen, 58, will remain CEO for a period to support a smooth transition while a search for his successor continues ^[1][2].

Reuters reported that the Novo Nordisk Foundation, the nonprofit that controls the company through its investment arm, instigated the early exit at a meeting in April, according to a spokesperson ^[2]. Jørgensen told Reuters he did not see the decision coming and was only informed very recently ^[2]. Novo's own announcement says the board and the CEO jointly concluded that starting a succession was in the best interest of the company and its shareholders, in light of "the recent market challenges" and the share price since mid-2024 ^[1].

The numbers behind the change

Novo's shares are down 59% from their peak in June 2024 and 32% so far this year, and the company's market value has fallen by about half, to roughly $310 billion from about $615 billion ^[2]. The shares closed 1.8% lower on the day of the announcement ^[2].

During Jørgensen's eight years as CEO, Novo's sales, profits and share price almost tripled, the company said ^[1]. Reuters, citing LSEG data, reported that shareholder returns including dividends rose more than 300% since he became CEO in January 2017 ^[2]. He joined Novo Nordisk in 1991 and was appointed CEO in January 2017 ^[1].

Competition is at the center of the story. US prescriptions for Eli Lilly's Zepbound obesity shot have surpassed Wegovy's since mid-March in the biggest market for both drugs ^[2]. Lilly's shares rose 2.6% on the news ^[2]. US approvals for the two drugs were based on separate trials, and Lilly's drug helped patients lose more weight ^[2].

Days before the CEO announcement, Novo cut its sales and profit forecast for the first time since Wegovy launched four years ago ^[2]. Investors were also disappointed by December trial data for the company's next-generation obesity drug CagriSema ^[2]. Patent protection for the active ingredient in Wegovy and Ozempic expires by 2032 in the United States ^[2]. Novo also expects a ban on US pharmacies producing compounded copies to help revive sales this year ^[2].

Analysts and investors were split. "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 ^[2]. Danske Bank analyst Carsten Lonborg Madsen said on the company's investor call, "It just feels like there's something that has gone pretty wrong here" ^[2]. Novo chair Helge Lund said the strategy remains unchanged and the board is confident in the business plans ^[1].

A foundation takes a bigger role

Lars Rebien Sørensen, who chairs the Novo Nordisk Foundation and was Novo Nordisk's CEO from 2000 to 2016, joined the board as an observer on May 16, with the intention of being nominated for election as a board member at the 2026 annual general meeting ^[1]. Through Novo Holdings A/S, the foundation owns 28% of the share capital and 77% of the votes in Novo Nordisk ^[1].

Separately, Camilla Sylvest, Novo's head of commercial strategy and corporate affairs, stepped down last month without citing a reason ^[2].

Why it matters for patients

Ozempic and Wegovy are widely prescribed in the US, and a change at the top of the company making them raises questions about supply, pricing and future products. No source reports any change to the availability, price or insurance coverage of Ozempic or Wegovy as part of the leadership change, and Novo has not disclosed any such plans. The company says its strategy and business plans are unchanged ^[1].

The competitive picture is more concrete. Zepbound's US prescriptions have moved ahead of Wegovy's ^[2], and more competition between two large makers of weight-loss drugs could affect list prices, rebates and which products insurers prefer. Specific pricing or coverage changes tied to this announcement have not been reported.

Patients using compounded semaglutide also have a stake: Novo expects the end of a temporary allowance for US pharmacies to make compounded copies to help revive sales this year ^[2]. What that means for people currently using compounded versions has not been detailed in these reports.

Longer term, the December CagriSema results and the 2032 US patent expiry for the ingredient in Ozempic and Wegovy shape what treatments may be available later ^[2]. The reports do not say how a leadership change would affect either.

What happens next

Novo held an investor conference call on May 16, 2025 at 14:00 CEST, 8:00 EDT ^[1]. Jørgensen stays as CEO until a successor is found, and the company has not disclosed a date for naming one, saying only that an announcement will be made in due course ^[1][2]. Board chair Helge Lund said the talks about replacing him lasted several weeks ^[2]. Sørensen is expected to be nominated as a board member at the 2026 annual general meeting ^[1].