Leadership Transition at Novo Nordisk: CEO Lars Fruergaard Jørgensen to Step Down Amid Market Headwinds and Strategic Realignment
In a significant leadership transition, Novo Nordisk A/S announced that Lars Fruergaard Jørgensen, the company’s longstanding Chief Executive Officer, will step down from his position following a mutual agreement with the Novo Nordisk Board of Directors. This leadership change comes after nearly a decade of transformative growth under Jørgensen’s stewardship and signals the beginning of a new chapter for the Danish pharmaceutical giant.
The company confirmed that Lars Fruergaard Jørgensen will remain in his role for a transitional period to ensure a seamless handover of responsibilities to his successor. The search for his replacement is currently underway, and Novo Nordisk stated that it will announce the name of the incoming CEO in due course. This planned succession is aimed at preserving continuity and maintaining the company’s strategic momentum during a time of both opportunity and challenge.
As part of the leadership restructuring, Novo Nordisk also revealed that Lars Rebien Sørensen, the current Chair of the Novo Nordisk Foundation and a former CEO of Novo Nordisk, will join the company’s Board of Directors in an observer capacity. Sørensen’s formal nomination for board membership is anticipated at the company’s Annual General Meeting in 2026. His return to a position of influence at the operational level signals a strategic effort by the Foundation to reinforce its presence and oversight at Novo Nordisk.
A Transformative Tenure
Lars Fruergaard Jørgensen’s tenure as CEO, which began in January 2017, has been marked by an extraordinary period of growth, innovation, and global expansion. Since assuming the top executive role, Jørgensen has guided Novo Nordisk through one of its most prosperous eras, with company revenues, operating profits, and market capitalization all nearly tripling during his eight-year leadership. Under his watch, Novo Nordisk further solidified its dominance in the global diabetes care market, launched a highly successful obesity franchise, and began strategic moves to expand its presence in broader chronic disease categories, including cardiovascular and rare diseases.
Beyond financial success, Jørgensen is credited with ushering in a renewed sense of purpose and corporate responsibility, as Novo Nordisk positioned itself not just as a pharmaceutical innovator, but also as a company committed to defeating serious chronic diseases through sustainable and inclusive health solutions.
In his statement following the announcement, Jørgensen reflected on his time at the helm with pride and gratitude:
“Serving as Novo Nordisk’s CEO for the past eight years has been a privilege and an experience that I will always cherish. I am proud of the results I have helped create together with my leadership team, the Board, and the thousands of employees who work every day to drive change to defeat serious chronic diseases.”
Jørgensen’s leadership style, characterized by a mix of strategic foresight, humility, and operational discipline, earned him widespread respect both within the organization and across the broader pharmaceutical industry.
Challenges and Market Dynamics Behind the Transition
Despite the company’s recent success, Novo Nordisk has encountered emerging headwinds that likely influenced the decision to expedite a CEO succession. Since mid-2024, Novo Nordisk’s share price has come under pressure, reflecting growing investor concerns amid shifting market dynamics, increasing competition in the obesity treatment space, supply chain constraints, and the broader volatility impacting the pharmaceutical sector.
The Novo Nordisk Foundation, which maintains control of the company through its investment arm Novo Holdings A/S, initiated discussions with the Board about the timing and potential benefits of leadership renewal. These discussions were driven not only by recent market performance but also by a desire to increase the Foundation’s influence and representation on the company’s Board.
“The 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 company said in a statement. “Lars has agreed to continue in his current role for a period to support a smooth leadership transition.”
Helge Lund, Chair of the Novo Nordisk Board, emphasized that while the leadership change is significant, the company’s strategic direction will remain consistent. “Novo Nordisk’s strategy remains unchanged, and the Board is confident in the company’s current business plans and its ability to execute on the plans,” Lund said.
Lund also expressed deep appreciation for Jørgensen’s contributions, stating, “On behalf of the Board, I would like to thank Lars Fruergaard Jørgensen for his outstanding contributions to Novo Nordisk’s success during his tenure as CEO. He is highly respected both inside and outside the company for his leadership, values, and vision for the company and the pharmaceutical industry at large.”
The Return of a Familiar Leader: Lars Rebien Sørensen
As part of the broader leadership transition, Novo Nordisk also confirmed that Lars Rebien Sørensen will begin participating in Board meetings as an observer. Sørensen, who led the company as CEO from 2000 to 2016 and has since chaired both the Novo Nordisk Foundation and Novo Holdings A/S, brings a wealth of institutional knowledge and strategic insight to the table.
His involvement is seen as a stabilizing factor during the CEO transition and a potential signal of greater strategic alignment between the operational leadership at Novo Nordisk and its controlling foundation.
Commenting on Sørensen’s return, Helge Lund noted: “The Board appreciates the perspectives and guidance provided by the Novo Nordisk Foundation through the Board members representing the Foundation and looks forward to working with Lars Rebien Sørensen on the Board.”
Sørensen’s deep experience in pharmaceutical management, governance, and innovation ecosystems could provide invaluable counsel as Novo Nordisk navigates its next phase of growth—particularly as it scales its obesity treatments globally and prepares for increased competition from emerging therapies in metabolic diseases.
Stability Amid Change
While the departure of a long-serving and highly successful CEO marks a notable inflection point for any corporation, Novo Nordisk’s leadership and stakeholders have emphasized that the company remains on solid footing. Its strategic roadmap—including the expansion of blockbuster obesity medications like Wegovy and Rybelsus, continued innovation in diabetes management, and exploratory ventures into new therapeutic frontiers—remains intact.
The company’s seasoned executive team, robust R&D pipeline, and strong commercial execution capacity suggest that it is well-positioned to maintain its trajectory of growth and innovation, even as a new CEO takes the helm.
Moreover, the deliberate and collaborative nature of this transition, involving both the Board and the controlling Foundation, signals a shared commitment to long-term stability and responsible governance.
As the search for a new CEO continues, industry observers will be watching closely to see who will be entrusted with leading Novo Nordisk into its next era. The successor will inherit not only one of the world’s most successful pharmaceutical enterprises but also a legacy of transformative leadership—and a mandate to continue driving forward the company’s vision of defeating chronic diseases and improving global health outcomes.
