Novo Nordisk Ex-CEO returns to guide leadership shift

DENMARK – Years after leading Novo Nordisk during its early transformation into a global leader in weight-loss treatments, former CEO Lars Rebien Sorensen is making a notable return.

Now 70, Sorensen has rejoined the Danish pharmaceutical giant as a board observer, just as the company begins its search for a new chief executive following the unexpected departure of Lars Fruergaard Jorgensen.

Jorgensen, who took over from Sorensen in 2017, helped Novo Nordisk rise to global prominence with the success of its obesity drug Wegovy, launched in 2021.

However, despite the drug’s rapid growth, competition in the U.S. market, especially from Eli Lilly’s rival product Zepbound, has put pressure on Novo’s performance, leading to concerns within the company and its powerful owner, the Novo Nordisk Foundation.

The foundation, chaired by Sorensen, holds a controlling stake in the company and reportedly played a decisive role in Jorgensen’s removal.

Insiders believe Sorensen’s influence will strongly shape the choice of the next CEO, with many expecting him to push for an external candidate – a first in Novo’s 103-year history.

Sources close to the matter suggest Sorensen is looking for a leader who can revitalize the company’s U.S. operations and deliver stronger results in the highly competitive obesity drug market.

While the company maintains that its long-term strategy remains unchanged, the leadership shift has raised eyebrows among investors, analysts, and the Danish public – many of whom saw Jorgensen’s removal as both surprising and public.

Novo Nordisk’s market value has declined sharply from its US $615 billion peak in 2023, and with the pharmaceutical industry facing increasing global pressure – including potential pricing reforms in the U.S., the leadership transition comes at a delicate time.

While Sorensen has ruled out returning as CEO himself, some expect him to favor a successor with a leadership style similar to his own – confident, outward-facing, and decisive.

During his 16-year tenure, Sorensen clashed with the Foundation over a failed 2004 merger attempt with Serono, which would have relocated company headquarters to Switzerland.

The Foundation blocked the deal to keep Novo Danish, and although the conflict was significant, Sorensen remained a respected figure, twice earning recognition as Global CEO of the Year by Harvard Business Review.