Lars Rebien Sørensen, chairman of the Novo Nordisk Foundation, has ignited controversy by removing Lars Fruergaard Jørgensen as CEO of Novo Nordisk, despite the company’s board opposing the decision. This move has drawn sharp criticism from experts, commentators, and social media users, raising questions about Sørensen’s motives and potential impact on the company’s future.

The dismissal occurred against a backdrop of a 50 percent drop in Novo Nordisk’s share price and concerns about the company’s performance in the crucial US market. Specifically, the market reacted negatively to trial results for the weight loss drug Cagrisema. Furthermore, there were reports of stagnant or declining sales of Novo Nordisk’s weight loss medications in the US, coupled with increasing competition from Eli Lilly and copycat products.

Sørensen, who previously served as CEO of Novo Nordisk for 16 years, reportedly grew increasingly restless as these challenges mounted. Sources suggest that he was displeased with the company’s handling of the situation, particularly the emergence of copycat competition in the US, which he perceived as a sign of mismanagement.

Prior to the dismissal, Sørensen contacted Novo Nordisk’s chairman of the board with the backing of the foundation board. However, the board did not share Sørensen’s conviction that Fruergaard Jørgensen should be immediately replaced.

The Novo Nordisk Foundation owns a significant portion of Novo Nordisk shares and controls a substantial number of votes at the general meeting. This level of ownership gives the Foundation influence over the company’s strategic direction.

The decision to remove Fruergaard Jørgensen raises questions about Sørensen’s leadership style and his vision for Novo Nordisk. Some observers question whether Sørensen is attempting to exert undue control over the company, while others argue that he is acting responsibly to safeguard its long-term interests. The full implications of this leadership change remain to be seen.