Novo-Nordisk A/S said on Friday its CEO Lars Fruergaard Jorgensen will step down.

U.S.-listed shares of the company fell 3% in premarket trading.

"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.

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.