Days earlier, Novo Nordisk minimize its gross sales and revenue forecast for first time because the launch of Wegovy 4 years in the past.
Wegovy-maker Novo Nordisk has pushed out CEO Lars Fruergaard Jorgensen over issues the corporate is dropping its first-mover benefit within the extremely aggressive weight problems drug market.
Novo Nordisk introduced the choice on Friday.
Days earlier, Novo Nordisk minimize its gross sales and revenue forecast for the primary time because the launch of Wegovy 4 years in the past, although Jorgensen had predicted a return to development in its largest market within the second half of this yr.
Novo’s chairman, Helge Lund, tried to reassure analysts and traders on a name that the corporate’s technique was intact and the plan for executing it had not modified.
He instructed the Reuters information company that discussions to exchange Jorgensen had occurred over the previous few weeks. Novo mentioned earlier that Jorgensen will stay in his position till a successor is discovered.
Below Jorgensen’s management, Novo Nordisk turned a world chief within the weight-loss drug market, with skyrocketing gross sales of its Wegovy and Ozempic remedies.
Analysts and traders have been unconvinced of the necessity to change him.
“He was main the corporate for eight years and was, in my view, extraordinarily profitable,” Lukas Leu, a portfolio supervisor at Bellevue Asset Administration, instructed Reuters.
Danske Financial institution analyst Carsten Lonborg Madsen was equally caught off guard.
“The best way we all know Novo Nordisk is that usually you have got endurance whenever you’re heading in the right direction, and you then let issues transfer in the fitting path after getting the technique proper,” he mentioned.
“It simply looks like there’s one thing that has gone fairly unsuitable right here,” he mentioned on the decision.
Novo’s shares have plunged since hitting a report excessive in June final yr as competitors, significantly from US rival Eli Lilly, makes inroads into its market share and as its pipeline of latest medicine has did not impress traders.
“The modifications are made in gentle of the current market challenges Novo Nordisk has been dealing with, and the event of the corporate’s share value since mid-2024,” Novo mentioned in its assertion.
Shares down
Jorgensen, at 58, has been CEO since 2017. He mentioned in an interview with Danish broadcaster TV2 that he didn’t see the choice coming, and was solely knowledgeable very not too long ago.
Booming gross sales of Wegovy helped make Novo probably the most precious listed firm in Europe, value $615bn at its peak in June final yr, however its market worth has halved to about $310bn.
Novo Nordisk’s share value fell on the information, buying and selling 0.8 % decrease by 14:01 GMT after being 4 % larger earlier within the day.
The shares are down 32 % year-to-date and 59 % from their all-time excessive.
Eli Lilly has seen US prescriptions for its Zepbound weight problems shot surpass Wegovy since mid-March in its largest market. Eli Lilly shares have been up 2.6 % after the information.
Camilla Sylvest, Novo’s head of economic technique and company affairs and a constant presence alongside CEO Jorgensen, stepped down final month with out citing a motive.
Former CEO of Novo Nordisk for 16 years and present chair of the Novo Nordisk Basis, Lars Rebien Sorensen, will be a part of the board as an observer with fast impact with the intention of taking a seat on the subsequent annual normal assembly, Novo mentioned.
The corporate is managed by the Novo Nordisk Basis via its funding arm, which owns 77 % of the voting shares.
