Pharma giant Novo Nordisk's CEO to step down amid market challenges

Danish drug-maker Novo Nordisk announced Friday that its CEO Lars Fruergaard Jorgensen will step down from his position as the firm's shares saw a fall during the increasing competition in the drug market.

"The changes are, however, 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," the company said in a statement.

The company emphasized that it has been through a significant growth journey and transformation under the leadership of Jorgensen.

"During his eight-year tenure as CEO, Novo Nordisk's sales, profits and share price have almost tripled. Novo Nordisk has a clear strategy, a strong product portfolio and an experienced leadership team," it noted.

Jorgensen, who joined Novo Nordisk in 1991 and has been the CEO since 2017, will remain in his role for a transitional period while a search is conducted for a replacement.

Novo Nordisk has been losing its market share in obesity and diabetes drugs to the rivals such as the US-based Eli Lilly.

Following the news, the company's shares fell more than 3.3% on Friday as of 1145GMT.

In the last six months, its shares plummeted 40% as a result of the intensifying competition.

In March, the Danish firm lost its title of "Europe's most valuable firm" to the German software giant SAP due to the decline in its shares.