Customized Care medical internist Dr. Frank Contacessa joins ‘Varney & Co.’ to weigh in on the White Home’s newest proposal for Medicaid and Medicare to cowl weight problems medication.
Novo Nordisk CEO Lars Fruergaard Jorgensen is stepping down as competitors within the weight-loss drug house pressured the corporate’s inventory.
“Considering the recent market challenges, the share price decline, and the wish from the Novo Nordisk Foundation, the Novo Nordisk Board and Lars Fruergaard Jørgensen have jointly concluded that initiating a CEO succession is in the best interest of the company and its shareholders,” the corporate introduced on Friday.
The corporate recommended Jorgensen for his management, crediting him for Novo Nordisk’s gross sales, earnings and share value nearly tripling throughout his eight-year tenure as CEO. Nevertheless, the corporate’s inventory has taken an enormous hit since 2024.
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Shares declined greater than 50% over the previous 12 months, wiping greater than $300 billion off its market worth. The pharmaceutical large has been racing in opposition to rivals corresponding to Eli Lilly to dominate the extremely profitable weight-loss house.
Lars Fruergaard Jorgensen, chief govt officer of Novo Nordisk, speaks throughout a TV interview in New York, on Aug. 10, 2022. (Christopher Goodney/Bloomberg by way of Getty Photos / Getty Photos)
Morgan Stanley Analysis is projecting that the worldwide marketplace for weight problems medication will attain between $105 billion and $144 billion in 2030. That is up from an earlier projection of $77 billion. In 2023, gross sales of branded weight problems medication notched $6 billion alone.
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Novo Nordisk’s Wegovy, permitted by the FDA for power weight administration in 2021, was the primary time a single treatment was obtainable that helped sufferers shed greater than 10% of whole physique weight, in keeping with BMO Capital Markets.
Whereas it marked a milestone, Lilly has been quickly catching up with its model, Zepbound, which was permitted in 2023 and reveals better outcomes for weight reduction.
A view of the headquarters of Danish pharmaceutical firm Novo Nordisk in Copenhagen, Denmark, on Sept. 26, 2023. (REUTERS/Tom Little/File photograph / Reuters Pictures)
Novo Nordisk additionally manufactures Ozempic, which is FDA-approved for the remedy of sort 2 diabetes and in competitors with Lilly’s Mounjaro, which was permitted in 2022 for the remedy of sort 2 diabetes.
Ticker Safety Final Change Change % NVO NOVO NORDISK A/S 63.58 -2.58
-3.90%
LLY ELI LILLY & CO. 733.29 +17.73
+2.48%
Jorgensen will stay in his place because the seek for his successor continues. The corporate stated he’ll stay as CEO to “support a smooth transition to new leadership” when his successor is chosen. The seek for his alternative is ongoing.
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Throughout his tenure, the corporate has grown tremendously, fortified its management in diabetes care, established itself as a pioneer within the remedy of weight problems and diversified into different areas of great power illnesses.
Lars Rebien Sorensen, chair of the Novo Nordisk Basis, may also be a part of the Novo Nordisk board.
