(NewsNation) — The CEO of Novo Nordisk, the company behind GLP-1 drugs Ozempic and Wegovy, is stepping down.
Lars Fruergaard Jørgensen is leaving because of “recent market challenges, the share price decline, and the wish from the Novo Nordisk Foundation,” according to a statement from the company.
U.S. shares of NVO tumbled by 4% to 65.53 on Friday after the news of Jørgensen’s departure, which Novo Nordisk called a “mutual agreement.”
The company’s board chair Helge Lund told Reuters succession discussions have been ongoing for weeks, though Jørgensen told Danish channel TV2 that he had found out about plan “very recently.”
“I did not see this coming,” Jørgensen said on the broadcast.
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In recent months, the Danish manufacturer has seen share prices decline as competition spikes in the weight-loss drug market, Axios reported.
The rivalry is strongest between Novo Nordisk and Eli Lilly, which produces Mounjaro and Zepbound, two drugs that have been found to cause greater weight loss than Ozempic or Wegovy.
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In April, the Centers for Medicare and Medicaid announced it would not finalize a Biden-era proposal allowing Medicare and Medicaid beneficiaries to access weight-loss drugs like Novo Nordisk’s.
Jørgensen is expected to remain with Novo Nordisk for a while longer to ensure a “smooth transition” in leadership, but no timeline has been announced. It is not immediately clear who will replace him.
