Novo Nordisk Looking for a New Boss After CEO Steps Down
New leadership sought for Novo Nordisk corporation.
It's time for a change at Danish drug titan Novo Nordisk! Their current CEO, Lars Fruergaard Jorgensen, is calling it quits after eight years in charge, as announced on Friday. But fear not, he'll stick around temporarily to help with the transition. Who will take over? Well, that's still a mystery, as the search is underway.
This company's diabetes and weight loss drugs, Wegovy and Ozempic, once made it the shining star of the European Stoxx Europe 50 index. However, lately, their stock price has plummeted because of growing competition and legal battles about these medications' potential side effects. Eli Lilly's competing treatment, Zepbound, is now the most prescribed Obesity treatment.
Despite these challenges, Novo Nordisk managed to boost its revenue and operating profit by an impressive 25% each last year. For this year, they're expecting growth of 16 to 24%.
So, why is Jorgensen leaving? According to the company, the board and Jorgensen decided that starting the CEO succession process is the best move considering recent market challenges, share price decline, and the Novo Nordisk Foundation's representation requests.
As for the succession plan, the company is taking a thorough approach, exploring both internal and external candidates. However, they're keeping tight-lipped about potential contenders for the top spot right now.
Ex-CEO Lars Rebien Sørensen, now chair of the Novo Nordisk Foundation, may join the board as an observer and seek a nomination in 2026, but it's unclear if he'll be taking the CEO reigns this time. Until Novo Nordisk unveils more details, we'll be left guessing about the new CEO's identity. So, stay tuned!
Sources:
- Fleming, P. (2023, March 10). Former CEO to Join Novo Nordisk Board as Observer After Exit Announced. Axios. Retrieved from https://www.axios.com/2023/03/10/novo-nordisk-former-ceo-to-join-board
- Pollard, A. (2023, March 10). Novo Nordisk CEO to step down as drugmaker plans succession. Reuters. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-ceo-to-step-down-as-drugmaker-plans-succession-2023-03-10/
- Hotovy, J. (2023, March 10). Novo Nordisk CEO Jorgensen Reportedly Stepping Down. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2023-03-10/novo-nordisk-ceo-jorgensen-reportedly-stepping-down
- As Novo Nordisk navigates ongoing market challenges and a declining share price, they are seeking a new leader capable of bolstering the company's future in the fields of science, health-and-wellness, finance, and business.
- With the expected growth in revenue and profits for Novo Nordisk, the successful candidate will have the opportunity to lead the company in areas such as scientific research, health innovation, financial strategy, and business development.
