It was a ‘mutual agreement,’ Novo says in a statement. A search for Fruergaard Jørgensen’s successor is ongoing.

Pharmaceutical company Novo Nordisk, maker of blockbuster weight loss drug Wegovy, says its CEO is stepping down.

Novo Nordisk CEO Lars Fruergaard Jørgensen is stepping down as the Danish drug giant faces increased competition for its weight-loss drugs and declining share price. Why it matters: Novo has faced challenges developing next-generation obesity drugs and will see its popular but pricey GLP-1s Ozempic and Wegovy subject to the next round of Medicare drug price negotiations in the U.