Pharmaceutical executive removed amid contention over rival weight loss injections
Full-Throttle Battle in the Big-Buck Weight Loss Jab Sector
The bigwig at the helm of Novo Nordisk, the company that manufactures Ozempic, hit the unemployment line yesterday, following a plunge in the firm's share price amid escalating competition in the swanky, multi-billion pound weight loss injection market.
Lars Fruergaard Jorgensen is out of a job after the Danish firm's board felt the heat from the foundation that owns the company. This shakeup took place as Novo's dominance in the weight loss injection market, projected to be worth more than £110 billion within the next decade, faces an imminent threat.
The company, recognized for its Wegovy and Ozempic brands, is now facing stiff competition from American rival Eli Lilly, which produces Zepbound, sold in Britain as Mounjaro. Mounjaro, also known as the "King Kong" of weight loss shots, has been causing anxiety among investors as there are growing fears it could overtake Novo.
Jorgensen, 58, expressed his shock over the decision to let him go, saying, "I didn't see this coming."
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Jorgensen's departure follows eight years of leadership during which Novo's sales, earnings, and share price almost tripled, making it the world's leader in weight loss injections. At its peak last June, the company was worth around £460 billion, but its share price has tanked sharply since, and it's now valued at approximately £166 billion.
Novo claimed Jorgensen was being given the boot due to "recent market challenges [the firm] has been facing and the development of the company's share price since mid-2024."
The board—headed by BP chairman Helge Lund—has been under pressure from the Novo Nordisk Foundation, which controls the majority of the voting rights in the company.
Jorgensen will remain in his position temporarily to ensure a smooth transition to new management.
The move comes after new prescriptions for Eli Lilly's Zepbound drug surpassed those for Novo's Wegovy in the United States, Novo's largest market, for the first time in March. Earlier this month, Novo slashed its 2025 sales and profit projections for the first time since the launch of Wegovy four years ago.
Analyst Carsten Lonborg Madsen at Danske Bank said, "It just feels like something has gone terribly wrong here." However, analysts at JP Morgan argued that the decision was "a reflective move by the Novo Nordisk Foundation."
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- Despite the success of Novo Nordisk's Wegovy and Ozempic brands, the company is now facing stern competition in the weight loss injection market from Eli Lilly's Mounjaro, causing concern among investors.
- The financial sector, including investing in stocks and finance, may see significant changes in the health-and-wellness industry as competition between weight loss injection companies like Novo Nordisk and Eli Lilly intensifies.
- Science and research are crucial in the development of effective weight management solutions, such as the weight loss injections produced by companies like Novo Nordisk and Eli Lilly, which are shaping the business landscape of the health-and-wellness sector.
- The business strategies and leadership of companies involved in the weight loss injection market, such as Novo Nordisk, can have a significant impact on their stock prices and overall market performance, as demonstrated by the resignation of Novo's CEO, Lars Fruergaard Jorgensen.
