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U.S.-listed shares of Novo Nordisk (NVO) declined in the opening minutes of trading Friday on the surprise news that CEO Lars Fruergaard Jørgensen is stepping down from the Danish drugmaker.

The maker of blockbuster weight-loss drugs Ozempic and Wegovy said Friday that Jørgensen's departure is a "mutual agreement," and that he will stay on as CEO while a successor is found. The company said a search is "ongoing, and an announcement will be made in due course."

Novo Nordisk cited "recent market challenges Novo Nordisk has been facing, and the development of the company's share price since mid-2024" as reasons that the board is looking to move on from Jørgensen, who has been CEO since January 2017.

"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," board chair Helge Lund said.

The drugmaker's stock surged to record highs in the first half of last year as sales of its popular weight-loss drugs sent revenue soaring. However, shares entered Friday down just over 50% in the last 12 months as sales growth started to slow and studies showed that the active ingredient in rival Eli Lilly's (LLY) Mounjaro and Zepbound caused greater weight loss than that of Ozempic and Wegovy.

Shares were down 3% shortly after markets opened on Friday.

UPDATE—This article has been updated with the latest share price information.

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