Novo Nordisk (NVO -2.74%) stock tumbled 3.9% through 10:45 a.m. ET this morning after the manufacturer of GLP-1 weight loss drugs announced its CEO, Lars Fruergaard Jørgensen, will step down from his role as CEO in "mutual agreement" with the company's board.
Jørgensen will be allowed to "continue as CEO for a period to support a smooth transition to new leadership."
Which means the company hasn't yet found a new CEO.
Image source: Getty Images.
What's next for Novo Nordisk
Novo Nordisk confirmed it is now seeking a successor for Jørgensen, but these are big shoes that need filling. As Novo notes, "during his eight-year tenure as CEO, Novo Nordisk's sales, profits and share price have almost tripled."
Growth has slowed a bit more recently, with sales up less than 20% in the most recent quarter, and profits climbing even more slowly as competition mounts. Earnings grew barely 14% last quarter -- and over the past year, the stock has lost roughly half its value. The board cited these "recent market challenges Novo Nordisk has been facing, and the development of the company's share price since mid-2024" as the reasons it is seeking new leadership.
Is Novo Nordisk stock a buy?
Investors are understandably nervous about this development, but every cloud has a silver lining, right? And at the risk of mixing metaphors, this change may give new investors in Novo Nordisk stock a second bite at the apple -- a chance to buy Novo Nordisk stock at half off, and ride the stock back up.
A great new CEO could do a lot of good with a stock priced under 19 times earnings, after all, and growing sales at almost 20%. Fingers crossed.
