Novo Nordisk, the corporate that makes Wegovy and Ozempic, is abruptly ousting its chief government over issues the agency is dropping floor within the standard weight-loss drug market.
The agency’s market worth has dropped by roughly half during the last 12 months, as alternate options from opponents resembling Eli Lilly acquire traction.
Lars Fruergaard Jørgensen has led the corporate since 2017, overseeing its rise to change into probably the most priceless firm in Europe after the launch of its flagship anti-obesity medicine.
He will keep within the position till a successor is appointed.
The firm stated its controlling shareholder, the Novo Nordisk Foundation, had began talks about changing Mr Jørgensen in latest weeks because of “market challenges” and the slide in its share value.
“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 chief executive succession is in the best interest of the company and its shareholders,” the corporate stated in a press release.
As a part of the modifications, the agency stated that its former chief government, Lars Rebien Sørensen, who now leads the Novo Nordisk Foundation, may even tackle a better position on the agency’s board.
Mr Jørgensen began on the firm in 1991. In an interview with Danish broadcaster TV2, he stated that he had not seen the choice coming, in keeping with Reuters.
The transfer additionally caught many analysts off-guard.
On a convention name with board chair Helge Lund, they pressed him on whether or not there have been different components behind the choice and whether or not it indicated a insecurity within the agency’s technique.
“Share price decline is not exactly something he can control so I was wondering if you can give some more detail on what exactly has driven this change right now,” stated Danske Bank analyst Carsten Lonborg Madsen, noting that the corporate had had solely a handful leaders since its begin.
“This is something that has been going on since mid 2024,” he stated, referring to the slide in share value worth. “It just feels like there’s something that has gone pretty wrong here.”
“I’m sorry to belabour the point but I have to say that I’m confused by the discussion,” Seamus Fernandez of Guggenheim Securities stated later. “If I were the next potential chief executive I would be very nervous to take the role.”
Mr Lund acknowledged that the choice may look abrupt, noting that up till now it had been anticipating a slower succession timeline.
He stated the agency would make an announcement of a brand new chief “in due course” and it didn’t sign a change within the its technique or plans.
“There is nothing more behind this,” he stated.
Shares within the agency fell additional after the announcement.
Since 2021, Novo Nordisk has greater than doubled its gross sales. But progress has been slowing.
Last 12 months, gross sales rose 25% to greater than 290m Danish kroner, whereas income had been up roughly 20%.
The firm earlier this month predicted gross sales progress between 13% and 21%, with progress in working revenue between 16% to 24%.
https://www.bbc.com/news/articles/c80k581dyx4o