Denmark's pharmaceutical company Novo Nordisk, known for developing 'dream obesity treatment' Wegovy, will change its head after 8 years.
On the 16th (local time), Novo Nordisk noted that Lars Fruer Jørgensen, Chief Executive Officer (CEO), will resign. He joined Novo Nordisk in 1991 and has led the company since 2017.
Novo Nordisk stated that "during his tenure as CEO, Novo Nordisk's sales and profits increased," but noted that the change occurred considering the recent market changes faced by Novo Nordisk and the trend of the company's stock price since mid-last year.
The next head has yet to be determined. The company explained that Jørgensen will temporarily remain in his position until a successor CEO is decided, to facilitate a smooth transition.
The leadership change at Novo Nordisk is interpreted as a strategy in response to the intensifying competition in obesity treatments.
Novo Nordisk introduced Wegovy in 2021. Wegovy is primarily composed of semaglutide, which mimics the glucagon-like peptide-1 (GLP-1) hormone. Originally developed as a diabetes treatment, it was presented as an obesity treatment after its weight loss effects were proven. Wegovy, administered once a week, can suppress appetite and create a feeling of fullness, typically resulting in a 15% weight loss.
While Novo Nordisk maintained its market leader position with the launch of Wegovy, it faces competition from U.S. pharmaceutical company Eli Lilly, which has launched the obesity treatment Zepbound (active ingredient tirzepatide), following the same principle as Wegovy, and is developing an oral obesity medication. There are speculations that Eli Lilly's lead in clinical trials for the oral obesity medication could lead to a shift in the top two positions in the obesity treatment market.