Danish pharmaceutical giant Novo Nordisk has boldly moved to reclaim its dominance in the global obesity treatment market. The company announced a leadership change and a substantial investment simultaneously, aiming to counter fierce competition from Eli Lilly and the rapid growth of its rival drug, Mounjaro (tirzepatide).
Industry reports from Tuesday reveal that Novo Nordisk announced the resignation of Chief Executive Officer (CEO) Lars Fruergaard Jørgensen on May 16. Jørgensen, who has led the company since 2017, was instrumental in driving growth in the obesity and diabetes markets with semaglutide-based drugs Ozempic and Wegovy.
Novo Nordisk cited changes in the market landscape and recent stock price fluctuations as reasons for seeking new leadership. The company stated that Jørgensen will temporarily remain in his position to facilitate a smooth transition. The search for a new CEO is underway, with candidates being considered from within and outside the company. An official announcement is expected in due course.
Wegovy loses ground to Mounjaro: U.S. market share shifts for the first time
This decision by Novo Nordisk is more than just a personnel change. It’s part of a broader, long-term strategy to solidify its position in the obesity treatment market. Eli Lilly has disrupted the status quo since launching Mounjaro last year, releasing clinical data showing GLP-1/GIP dual-action tirzepatide outperforms semaglutide in weight loss efficacy.
Recent results from Eli Lilly’s SURMOUNT-5 phase 3b study, released on May 12, showed that patients treated with Mounjaro achieved an average weight loss of 20.2% over 72 weeks. In contrast, Wegovy users saw only a 13.7% reduction. This translates to Mounjaro demonstrating about 47% greater weight loss effectiveness than Wegovy.
These clinical outcomes have reshaped the market landscape, particularly in the U.S., the largest market for obesity treatments. In the first quarter of this year, Eli Lilly captured 53.3% of the U.S. GLP-1 obesity treatment market share, surpassing Novo Nordisk (46.1%) for the first time. Consequently, Novo Nordisk’s stock price has halved since the latter part of last year.
Novo’s $2.2 billion bet on Septerna: Aiming to lead in next-gen oral obesity drugs
In a strategic move to regain its edge in the next-generation oral obesity drug market, Novo Nordisk has made a significant platform investment. On May 14, the company announced an exclusive collaboration and licensing agreement with U.S. biotech firm Septerna, valued at up to 2.2 billion USD.
Septerna specializes in developing oral small-molecule therapies targeting GPCR (G protein-coupled receptors). Novo Nordisk plans to leverage this technology to co-develop innovative obesity treatments targeting GLP-1, GIP, and glucagon receptors as targets.
The agreement stipulates that Septerna will spearhead initial research, while Novo Nordisk will take exclusive responsibility for clinical trials and global commercialization after the investigational new drug (IND) application stage. Four programs will be prioritized, with Novo Nordisk covering all research and development costs.
This partnership signals a strategic pivot for Novo Nordisk. As its oral Wegovy awaits U.S. Food and Drug Administration (FDA) approval, the company aims to proactively develop drugs with different mechanisms of action, positioning itself to lead in the next-generation oral obesity drug market.