Novo Nordisk has announced that Lars Fruergaard Jørgensen will step down as CEO, following a mutual agreement with the company’s board of directors. According to the company, Jørgensen is expected to remain in the role while a search for his successor is underway, aiming for a smooth transition.

What Does the CEO Change Mean for Novo Nordisk’s Future?

The move comes amid recent market challenges and a decline in share price since mid-2024, prompting the Novo Nordisk Foundation—which holds majority voting control through Novo Holdings—to advocate for an accelerated CEO succession and greater board involvement.¹

“Novo Nordisk’s strategy remains unchanged, and the board is confident in the company’s current business plans and its ability to execute on the plans,” said Helge Lund, chair, Novo Nordisk board, in a press release. “On behalf of the board, I would like to thank Lars Fruergaard Jørgensen for his outstanding contributions to Novo Nordisk’s success during his tenure as CEO. He is highly respected both inside and outside the company for his leadership, values and vision for the company and the pharmaceutical industry at large.”

Market Pressures and Strategic Realignment Prompt CEO Change

The move comes on the heels of results from the head-to-head Phase IIIb SURMOUNT-5 trial (NCT05822830), which found that Eli Lilly’s tirzepatide (Zepbound) outperformed Novo’s semaglutide (Wegovy) in sustained weight reduction over 72 weeks in adults with obesity or overweight with comorbidities. Novo’s share price was approximately $133 a year ago, but has since dropped to approximately $66.

As part of the transition period, Lars Rebien Sørensen, chair, Novo Nordisk Foundation, will begin attending Novo Nordisk’s board meetings as an observer starting today, with plans to be nominated for election as a full board member at the 2026 Annual General Meeting.¹

“The board appreciates the perspectives and guidance provided by the Novo Nordisk Foundation through the board members representing the foundation and looks forward to working with Lars Rebien Sørensen on the board,” continued Lund, in the press release.

Strong Q1 Performance Highlights GLP-1 Growth Despite Outlook Revision

Earlier this month, Novo Nordisk reported its Q1 financial performance. Overall, results were strong, with sales rising 19% and 18% at constant exchange rates (CER) to approximately $11.6 billion, and operating profit increasing 22% (20% at CER) to approximately $5.8 billion. US sales grew 20% (17% at CER), while international operations rose 18% (19% at CER). The company’s diabetes and obesity care segment grew 21% to $10.9 billion, influenced by a 67% surge in obesity care sales and continued momentum in GLP-1 diabetes therapies. Lastly, rare disease sales rose by 5%.

R&D Advances Bolster Pipeline with Obesity and MASH Submissions

In terms of R&D, the company recently completed the pivotal REDEFINE 2 trial for CagriSema, which showed 15.7% weight loss in adults with obesity and type 2 diabetes, with regulatory filing expected in Q1 2026. Further, the company submitted oral semaglutide 25 mg for obesity to the FDA and semaglutide 2.4 mg for metabolic dysfunction-associated steatohepatitis to both the FDA and regulators in the EU.

However, Novo Nordisk revised its 2025 outlook downward due to slower-than-expected branded GLP-1 uptake in the United States as a result of compounded GLP-1 products and the rise of competition in the GLP-1 space. Moving forward, the company now expects sales growth of 13%–21% and operating profit growth of 16%–24% at CER, reaching an estimated $11.3 to $13.1 billion USD, with operating profit ranging from approximately $5.4 to $6.3 billion.²

“Serving as Novo Nordisk’s CEO for the past eight years has been a privilege and an experience that I will always cherish,” said Jørgensen, in the press release. I am proud of the results I have helped create together with my leadership team, the Board, and the thousands of employees who work every day to drive change to defeat serious chronic diseases.”

References

1. Novo Nordisk A/S: Lars Fruergaard Jørgensen to step down as CEO of Novo Nordisk. Novo Nordisk. May 16, 2025. Accessed May 16, 2025. https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=916008

2. Novo Nordisk's sales increased by 19% in Danish kroner and by 18% at constant exchange rates to DKK 78.1 billion in the first three months of 2025. Novo Nordisk. May 7, 2025. Accessed May 16, 2025. https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915995