STORY: Novo Nordisk employees applauded their ousted CEO Lars Fruergaard Jorgensen on Friday.
The Danish maker of weight loss drug Wegovy is making a change at the top over concerns the company is losing its first-mover advantage in the highly competitive obesity market.
The move caught Jorgensen by surprise, as he told local media that he didn't see it coming.
"I was told this here quite recently, and I won't reveal the whole process around it, but I will say that I am quite clear - I go to work and have been super happy with my period at Novo Nordisk, and it will continue for a while, and I feel that I have done my best every single day, and so everything is good for me."
Novo's chairman told Reuters that discussions to replace Jorgensen had taken place over the past few weeks.
The company said earlier that Jorgensen will remain in his role until a successor is found.
Days earlier, Novo Nordisk cut its sales and profit forecast for the first time since the launch of Wegovy four years ago, though Jorgensen had predicted a return to growth in its biggest market in the second half of this year.
Novo's chairman tried to reassure analysts and investors on a call that the company's strategy was intact and the plan for executing it had not changed.
Though one analyst told him, "It just feels like there's something that has gone pretty wrong here."
Novo's shares have plunged since hitting a record-high in June last year as competition, particularly from U.S. rival Eli Lilly makes inroads into its market share and as its pipeline of new drugs has failed to impress investors.
Lilly has seen U.S. prescriptions for its Zepbound obesity shot surpass Wegovy since mid-March in its biggest market.
Eli Lilly shares were up about 2 and a half percent after the news while Novo fell nearly two percent.
