The news: In a surprising development, Novo Nordisk is parting ways with CEO Lars Fruergaard Jørgensen. Jørgensen held the position for eight years and will stay on board while Novo searches for a successor.
Unpacking the news: Novo cited recent market challenges, particularly that the company’s share price has plummeted about 50% in the past year.
3 key drivers of Novo’s falling stock:
- Competition from the compounded weight loss drug market has cut into Novo’s revenues. Sales of Wegovy and Ozempic fell short of expectations in Q1, which Novo attributed to the widespread availability of compounded GLP-1s in the US.
- US prescription volume for Novo’s weight loss drugs has dropped in favor of rival Eli Lilly’s GLP-1s. Multiple recent studies have found that Zepbound is more effective than Wegovy for losing weight, which could be a factor that sways doctors when deciding which GLP-1 to prescribe to patients.
- Ozempic, Wegovy, and Rybelsus are up for round two of Medicare drug price negotiations. Negotiated prices wouldn’t take effect until 2027 but would have a negative effect on sales for Novo’s three semaglutide GLP-1 products after that point.
Yes, but: Novo acknowledged in a statement that its sales, profits, and share price have nearly tripled under Jørgensen over the last eight years.
Despite the recent downturn, Novo is still one of two dominant players in the GLP-1 drug market. Weight loss drugs have driven Novo to be one of the most powerful pharma companies in the world, even if it’s behind Lilly.
- Novo’s three semaglutide products combined to account for 82% of Novo Nordisk’s US revenue last year, or just over $20 billion, per an April 2025 I-MAK analysis.
- Wegovy and Ozempic rank third and fourth, respectively, on the list of projected fastest-growing drugs in 2025 (measured by the difference in new global sales from 2024 to 2025), per a January 2025 Evaluate Pharma report that’s based on the company’s consensus forecasts. Zepbound and Mounjaro rank first and second on that same list, however.