Novo Nordisk CEO Lars Jørgensen Steps Down Amid Challenges, Retail Chatter Spikes

Drug maker Novo Nordisk (NVO) said on Friday that Lars Fruergaard Jørgensen will step down as CEO, sending shares down 4% in pre-market trading.

Jørgensen, appointed CEO in January 2017, will continue as the chief executive for a period to support a smooth transition of leadership while a search for his successor remains ongoing.

The company said it would announce the next CEO in “due course,” but did not provide a more definite timeline.

Jørgensen decided to step down as per a mutual agreement with the Novo Nordisk board. The board said the change is being made in light of Novo Nordisk's recent market challenges, the company’s falling share price since mid-2024, and discussions with the Novo Nordisk Foundation.

The Foundation’s Board initiated a discussion with the Novo Nordisk Board on the merits of an accelerated CEO succession and expressed a wish to increase its representation on the company’s Board.

Novo Nordisk Foundation controls a majority of votes at the Novo Nordisk Annual General Meeting through its investment company, Novo Holdings A/S.

Meanwhile, the Novo Nordisk Board has also agreed to let Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, to participate as an observer in Novo Nordisk’s Board meetings as of Friday.

The company said that Sørensen will be nominated for election as a board member at the 2026 Annual General Meeting. Sørensen was CEO of Novo Nordisk company from 2000 to 2016.

On Stocktwits, retail sentiment around NVO rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours while message volume jumped from ‘normal’ to ‘high’ levels.

A Stocktwits user expressed skepticism at the CEO's exit.

Another expects the stock to hit a year low.

NVO stock is down by over 24% this year and about 50% over the past 12 months.

Also See: CVS, Walgreens To Buy Pharmacy Assets From Rite Aid Corp: Retail Sentiment Brightens

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