COPENHAGUE (Reuters) – The Danish pharmaceutical group Novo Nordisk announced on Friday the departure of its director general, Lars Fruergaard Jorgensen, while the pioneer of anti -obeyity drugs is faced with increasingly harsh competition.

“The changes are made in the light of the recent challenges that Novo Nordisk has been confronted on the market and the evolution of the company’s action price since mid-2024,” the company said in a press release.

Lars Fruergaard Jorgensen will remain director general until a successor is found, it is specified.

Under his leadership, Novo Nordisk has become a pointed pharmaceutical giant on the obesity and diabetes medication market, carried by sales of its flagship treatments Wegovy and Ozempic.

But he was caught up in rivals, such as Eli Lilly and his Zepbound treatment. The prescriptions of the American group in the United States, the most important market for obesity, have exceeded those of Wegovy since mid-March.

Since the beginning of the year, the Novo Nordisk action fell 32%. It accuses a decrease of 59% compared to its historic summit last June.

Friday, the Title Novo Nordisk fell by 2.85% at 11:25 am GMT, after the announcement of the resignation of Lars Fruergaard Jorgensen.

“Little encouraging at first glance. First returns indicate that the company recognizes insufficient performance and the need for a change, raising doubts about a possible rebound in prescriptions,” observed analysts from Goldman Sachs.

Best position

Those of JP Morgan judge “unexpected” the announcement of the change of managing director but believe that it is a “decisive action” aimed at placing Novo in a better position in the market for anti-obeyity treatments.

Novo Nordisk is controlled by the Novo Nordisk Foundation through its investment branch which holds 77% of the shares with voting rights.

Lars Rebien Sorensen, former director general of Novo Nordisk for 16 years and current president of the Novo Nordisk Foundation, will join the board of directors as an observer with an immediate effect in order to obtain a seat during the next annual general meeting, said Novo Nordisk.

“Given the recent challenges of the market, the drop in the course of action and the wish of the Novo Nordisk Foundation, the Novo Nordisk and Lars Fruergaard Jorgensen Board of Directors have jointly estimated that the launch of a process of succession to the general management was in the best interest of the company and its shareholders,” added the group.

(Report Stine Jacobsen, Etienne Breban and Elena Smirnova, edited by Sophie Louet and Blandine Hénault)

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