Novo Nordisk (NVO) CEO Lars Fruergaard Jørgensen will step down from the global healthcare company after eight years as it seeks a new leader. Jørgensen’s departure comes after a rough period for the Denmark-based company. Shares have fallen nearly 50% over the last year as market challenges have continued to weigh on its business. News of the CEO’s departure saw NVO stock fall another 2.43% on Friday morning.
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While Jørgensen will leave Novo Nordisk, he’s agreed to remain on its payroll long enough for the company to find a replacement CEO. This will allow for a smooth leadership transition. While Novo Nordisk’s sales, profits, and share price have almost tripled under Jørgensen’s leadership, the company wants a new leader due to “recent market challenges, the share price decline, and the wish from the Novo Nordisk Foundation.”
Novo Nordisk Announces More Leadership Changes
In connection with the ousting of its CEO, Novo Nordisk has announced that Lars Rebien Sørensen, Chairman of the Novo Nordisk Foundation, will join the company’s Board as an observer. The group intends to nominate him as a Board member during the company’s 2026 Annual General Meeting.
Sørensen has a long history with Novo Nordisk. He served as the CEO of the company for 16 years before Jørgensen took over in 2017. Since then, he’s acted as the Chairman of the Novo Nordisk Foundation and Novo Holdings A/S Boards.
Is NVO Stock a Buy, Hold, or Sell?
Turning to Wall Street, the analysts consensus rating for Novo Nordisk is Hold, based on three Buy, five Hold, and one Sell ratings over the past three months. With that comes an average NVO stock price target of $92.11, representing a potential 44.03% upside for the shares.
