Ozempic-Maker CEO Ousted Over Pharma Firm’s Rocky Market Downturn

In an abrupt and stunning twist, the CEO of Ozempic-maker Novo Nordisk has been ousted from his place as the pinnacle of the corporate. The Dutch pharmaceutical large introduced Friday that, amidst a current downturn within the firm’s inventory, Lars Fruergaard Jørgensen would quickly be stepping down as its high govt and the board would search a successor for him.

“As per mutual settlement with the Novo Nordisk Board, Lars Fruergaard Jørgensen will step down from his position as CEO of Novo Nordisk,” the corporate mentioned, in a press launch. “He’ll proceed as CEO for a interval to help a clean transition to new management.”

It certainly appears odd that Novo Nordisk isn’t doing too effectively. In any case, it’s the corporate behind a breakthrough drug, semaglutide, that may make seemingly anybody—from Jim Gaffigan to Oprah—shed kilos immediately. Nonetheless, whereas Ozempic and Wegovy have secured standing as world family names, Novo Nordisk’s inventory worth has seen a significant downturn over the previous yr, as competitor brands have crept into the market. In its assertion on Jorgensen’s ousting, the pharmaceutical firm notes that the swiftly altering panorama for weight reduction merchandise is what has led to the shakeup in firm management. “The adjustments are made in mild of the current market challenges Novo Nordisk has been going through, and the event of the corporate’s share worth since mid-2024,” the press release from the corporate reads.

It additionally notes, nonetheless, that Jorgensen managed to shepherd the corporate into steadily higher financial waters for the higher a part of a decade earlier than market troubles hit in 2024: “Throughout his eight-year tenure as CEO, Novo Nordisk’s gross sales, earnings and share worth have virtually tripled,” the corporate writes. “Contemplating the current market challenges, the share worth decline, and the want from the Novo Nordisk Basis, the Novo Nordisk Board and Lars Fruergaard Jørgensen have collectively concluded that initiating a CEO succession is in the perfect curiosity of the corporate and its shareholders.”

Gizmodo reached out to Novo Nordisk for extra info and can replace this story if it responds.