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While bring in this role, Jørgensen had helped steer the company to the forefront of the biggest drugmakers in the world. Credit: MADS CLAUS RASMUSSEN / AFP / Getty Images

Novo Nordisk is parting ways with its CEO Lars Fruergaard Jørgensen after the two parties mutually agreed that a change of leadership was required amid fierce glucagon-like peptide 1 receptor agonists (GLP-1RA) market pressure from Eli Lilly.  

It is a significant moment for the Danish company, which has been a major catalyst for the growth in the weight loss and type 2 diabetes (T2D) drug markets with its popular products Wegovy (semaglutide) and Ozempic (semaglutide), respectively.  

Shares in the Copenhagen-listed company dropped 4.3% at market close in the aftermath of the announcement on 16 May. Stock was still down by Monday morning (19 May).  

Novo Nordisk did not provide a timeline for revealing its new CEO, saying only that the search for a successor is ongoing. Jørgensen will continue at the helm of the drugmaker to support a smooth transition to new leadership.  

Despite early success, however, Novo Nordisk has fallen behind in the GLP-1RA race, overtaken by Eli Lilly and its GLP-1RA asset tirzepatide, respectively sold under the brand names Zepbound and Mounjaro for weight loss and T2D.

In a renewed push to overhaul pharmaceutical pricing in the US, President Donald Trump announced he will sign an executive order to link US drug prices to those paid in other countries. 

The executive action, posted late Sunday 12 May on Trump’s Truth Social platform, outlines a “most favoured nation” pricing model under which the US government would not pay more for drugs than the lowest price charged globally. Trump claimed the measure would lead to immediate reductions in prescription drug costs, ranging from 30% to 80%, although no implementation details or timelines were provided. 

Drug prices are typically highest in the US. According to a Reuters article, pharma companies launched new US drugs at prices 35% higher in 2023 compared to those launched in 2022.

The Trump Administration in the US has introduced legislation outlining plans for deep cuts and limitations to Medicaid, which observers warn could impact millions of Americas most vulnerable citizens over the next decade.

The budget reconciliation bill, released late on 11 May by the US Committee on Energy and Commerce, estimates that proposed cuts to the health insurance programme will save the federal government around $900bn over the next decade. 

Set for a debate in a committee hearing on 13 May, the proposed amendments to Medicaid include new work requirements for claimants. Observers warn these changes could inadvertently kick qualified claimants off the programme due to increased administrative hurdles, stricter eligibility checks, and a ban on using Medicaid funding for gender-affirming care for minors.

The US Food and Drug Administration (FDA) has set an “aggressive” timeline to implement generative artificial intelligence (genAI) across the agency by 30 June 2025.

According to the agency, the technology has amply demonstrated its value in enabling FDA personnel to spend less time on “tedious, repetitive tasks that often slow down the review process”. 

FDA commissioner Dr Martin Makary said he was “blown away” by the agency’s first genAI-assisted scientific pilot review.

He commented: “We need to value our scientists’ time and reduce the amount of non-productive busywork that has historically consumed much of the review process.

“The agency-wide deployment of these capabilities holds tremendous promise in accelerating the review time for new therapies.”

At Swiss Biotech Day, which took place on 5–6 May in Basel, Switzerland, a panel of biotech executives and investors discussed ways for European biotechs to better source US funding.

Investment in biotech has been low since the peak seen in 2021, so finding good partners who will support long-term development is very important. As a result, European biotechs must make sure they are on the same wavelength as their US investment partners.

Melanie Rolli, group CEO of the Swiss division of pharma company Helsinn, said that the “hustle” spirit from Americans is something that European companies must better understand.

“In Germany, it is all about seniority and tenure and waiting until it is your turn to contribute,” Rolli said. “Meanwhile, in the US, you are in a high-performing team environment and it is clear you had a seat at the table, which means you needed to contribute.