Novo Nordisk stock falls as CEO steps down

Published 16/05/2025, 12:16
© Reuters

Investing.com -- Shares of Novo Nordisk (NYSE:NVO) fell 3% today following the announcement that CEO Lars Fruergaard Jørgensen will step down from his role. The company stated that Jørgensen’s departure was a mutual decision with the board, and he will remain CEO for a period to ensure a smooth transition to new leadership. The search for a successor is currently underway.

The leadership change comes as Novo Nordisk confronts recent market challenges and a decline in its share price since mid-2024. Despite the company’s significant growth and transformation under Jørgensen’s eight-year tenure, where sales, profits, and share price nearly tripled, the Novo Nordisk Foundation has initiated a dialogue for an accelerated CEO succession plan.

Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join the Novo Nordisk Board as an observer with the intention to be nominated for election as a board member in 2026. This move aligns with the Foundation’s wish to increase its representation on the Board, given its majority control of votes at the company’s Annual General Meeting through Novo Holdings A/S.

Helge Lund, chair of the Novo Nordisk Board, expressed confidence in the company’s strategy and its ability to execute current business plans. He also commended Jørgensen for his outstanding contributions and leadership, which have been instrumental in Novo Nordisk’s success.

Lars Fruergaard Jørgensen, who joined Novo Nordisk in 1991 and became CEO in January 2017, reflected on his tenure with pride, acknowledging the collective efforts in driving the company’s growth and its mission to combat serious chronic diseases.

The company’s strategy remains unchanged amidst these developments, and the Board continues to show confidence in the current business trajectory and the potential for future success.

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