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Novo Nordisk has ousted CEO Lars Fruergaard Jørgensen, as a manufacturer of pioneering obesity drugs, ozempic struggles are fighting in profits, the drop in market share and the course of the diving action.
The actions of the drug manufacturer have dropped more than 50% in the last 12 months, which has enabled him to lose his crown as the largest company listed in Europe by market capitalization after having culminated at 650 billion dollars last year.
Investors fear that his drugs on obesity and diabetes lose ground with regard to us rivals Eli Lilly, and were disappointed by the results of the trial of new generation drugs in his pipeline.
“Given the recent market challenges, the drop in the course of action and the wish of the Novo Nordisk Foundation, the Novo Nordisk Board and Lars Fruergaard Jørgensen concluded jointly that the launch of a succession of CEOs is in the best interest of the company and its shareholders,” said Novo.
Last week, the company reduced sales and profit forecasts for the year, blaming the rapid expansion of drug replicas in the United States. These cheaper alternatives – sold by so -called composition pharmacies – were temporarily authorized when there was a shortage of drugs.
Novo said that sales growth for this year should now be 13 to 21% at constant exchange rates, against previous directives from 16 to 24%. It provides for operating profit growth of 16 to 24%, against a previous range of 19 to 27%.
Jørgensen directed the drug manufacturer for eight years, during which the course of action tripled when he capitalized on the excitement about the first wave of effective obesity drugs, with his Wegovy and Ozempic products.
On Friday, in his statement, Novo noted the concern concerning the company’s action course “since mid-2010”. The shares dropped by 21% in one day at the end of December, when the company announced that its obesity monitoring cagtise had missed its objective in a clinical trial in late stages.
Novo said he would make an announcement on his search for a new managing director “in good time”. Jørgensen would continue his role for a period to ensure a smooth transition, he added.
The Novo Nordisk Foundation, which is the major owner of the company through Novo Holdings, increases its representation on the board of directors. Lars Rebien Sørensen, the president of the Foundation, will immediately begin to participate in the meetings of the Board of Directors.
Jørgensen said he was “proud of the results” that he had produced in the company with colleagues “who work every day to generate changes to overcome serious chronic diseases”.
Novo’s shares fell after the announcement, exchanging 4.4% less.
Helge Lund, president of Novo, is also the president of the UK Oil Major BP, who faces immense pressure from activists from the Directors of US Elliott Elliott Hell Funds.
