Novo Nordisk said Friday its CEO Lars Fruergaard Jorgensen will step down following a plunge in the company's share price amid intensifying competition in the obesity drug market.

"The changes are made in light of the recent market challenges Novo Nordisk has been facing, and the development of the company's share price since mid-2024," Novo said in a statement.

Under his leadership, Novo Nordisk became a first-mover in the obesity and diabetes drug market, with sky-rocketing sales of its Wegovy and Ozempic treatments.

Investors have, however, been concerned that Novo's first-to-market obesity drug is losing its lead to Eli Lilly, whose U.S. prescriptions for its Zepbound obesity shot have surpassed Wegovy since mid-March.

Novo Nordisk's share price fell 2.2% by 7:16 a.m. Friday. It is down 32% year-to-date.

Jorgensen, who joined Novo Nordisk in 1991 and has been CEO since 2017, will continue as CEO for a transition period and a search for his successor is ongoing, it added.