Novo Nordisk’s CEO Lars Fruergaard Jørgensen will stand down as the chief of the Danish pharma giant following increased competition in the obesity drug market.

A company statement said the decision was made “per mutual agreement” between Jørgensen and Novo Nordisk’s board.

Under his eight-year tenure as CEO, the Danish company’s sales, profits and share price have almost tripled, as it emerged as the front-runner in the diabetes and obesity drug markets, thanks to the success of Ozempic and Wegovy.

But the firm, until last year Europe’s most valuable, saw its share price tumble over the past year amid increased competition and disappointing trial results for its next-generation treatments.

“The changes are, however, 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 Nordisk said in a statement.

Novo sells the majority of its obesity drugs in the U.S. where President Donald Trump has bemoaned the high price charged there, recently contrasting this against a far lower price in the U.K. Trump signed an executive order this week to bring down drug costs.

In Brussels, Jørgensen serves as the president of the European Federation of Pharmaceutical Industries and Associations (EFPIA), the pharma lobby group in the EU.

Jørgensen, who has worked at the company since 1991, told POLITICO in an interview last year that he had no plans to leave the company.

Novo said Jørgensen would remain in his post “for a period to support a smooth transition to new leadership.” It added that the search for his replacement was ongoing and an announcement would be made in due course.

Last month, the pharma giant’s longtime head of commercial strategy and corporate affairs, Camilla Sylvest, also stood down.