Novo Nordisk has replaced its CEO, Lars Fruergaard Jorgensen, as concerns grow over the companyâs declining sales and profit forecasts for Wegovy, its key obesity drug. Despite Jorgensen's previous optimism about returning to growth, Novo's stock has fallen significantly amid rising competition from Eli Lilly and underwhelming drug pipeline progress. Analysts expressed surprise at the decision to replace such a successful leader, raising questions about the company's strategy and future direction. Chairman Helge Lund reassured stakeholders that the companyâs strategy remains the same, even as they navigate this challenging market.
Days earlier, Novo Nordisk cut its sales and profit forecast for the first time since the launch of Wegovy four years ago. Wegovy-maker Novo Nordisk has pushed out CEO Lars Fruergaard Jorgensen over concerns the company is losing its first-mover advantage in the highly competitive obesity drug market.
Novo's chairman, Helge Lund, tried to reassure analysts and investors on a call that the company's strategy was intact and the plan for executing it had not changed.
He was leading the company for eight years and was, in my opinion, extremely successful, Lukas Leu, a portfolio manager at Bellevue Asset Management, told Reuters.
It just feels like there's something that has gone pretty wrong here, he said on the call.
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