Novo Nordisk A/S ( NVO ) shares fell on Friday after the company announced that CEO Lars Fruergaard Jørgensen will step down after eight years leading the company.

He will remain in the role temporarily to help ensure a smooth leadership transition while a successor is identified.

The decision follows a decline in Novo Nordisk's ( NVO ) share price since mid-2024 and increased pressure from the Novo Nordisk Foundation, which holds majority voting power through its investment company. The foundation also pushed for stronger board representation.

Also Read: Novo Nordisk's ( NVO ) Ozempic Weight Loss Jabs Could Boost UK Economy By $6 Billion, Study Finds

NVO stock has lost close to 50% of its value in the last year and is down over 23% year-to-date. The company makes blockbuster drugs like Ozempic and Wegovy.

The company said that during his eight years as CEO, Novo Nordisk's ( NVO ) sales, profits and share price have almost tripled.

Helge Lund, chair of the Novo Nordisk Board, says, "Novo Nordisk's ( NVO ) strategy remains unchanged, and the Board is confident in the company's current business plans and its ability to execute on the plans."

Lars Rebien Sørensen, current chair of the foundation and former CEO of Novo Nordisk ( NVO ), will join the company's board as an observer.

He is expected to be nominated as a board member at the 2026 Annual General Meeting, bringing with him extensive industry experience and deep company knowledge. Board Chair Helge Lund said the company's overall strategy remains intact.

The executive transition comes amid mixed business signals. While the company reported lukewarm Q1 earnings, it remains optimistic about upcoming regulatory milestones, including an expected FDA decision on oral Wegovy by the end of 2025.

On Wednesday, Novo Nordisk ( NVO ) entered a global collaboration with Septerna Inc. ( SEPN ) to develop oral small-molecule therapies for obesity, type 2 diabetes, and cardiometabolic diseases.

The deal includes over $200 million in upfront and near-term milestone payments, with Septerna ( SEPN ) eligible for up to $2.2 billion in total. Novo Nordisk ( NVO ) will cover all development costs and lead commercialization.

Price Action: NVO shares are trading lower by 3.87% to $63.64 premarket at the last check on Friday.

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