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This week, Novo Nordisk NVO announced the surprise resignation of its chief executive officer (CEO), Lars Fruergaard Jørgensen. Sanofi SNY announced the proposed acquisition of Vigil Neuroscience, a clinical-stage biotech focused on developing treatments for neurodegenerative diseases. Pfizer PFE announced a licensing deal with Chinese biotech 3SBio. The FDA granted approval to Roche’s RHHBY eye drug, Susvimo, for its third indication in the United States. Merck MRK and its Japanese partner Daiichi Sankyo began a pivotal study on ifinatamab deruxtecan in esophageal cancer.
Here's a recap of the week’s most important stories.
NVO CEO Resigns Amid Ongoing Challenges
Novo Nordisk announced that its CEO, Lars Fruergaard Jørgensen, will step down from his position. The decision can be attributed to increasing competitive pressure and recent market challenges that have led to a decline in the company’s stock price since mid-2024. Also, the Novo Nordisk Foundation board asked for a CEO succession and an increased presence on the NVO board. Novo Nordisk Foundation controls the majority of votes at the Novo Nordisk annual general meeting. Accordingly, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join NVO’s board as an observer for some time.
Jørgensen’s decision comes after a mutual agreement with the board, although he will remain in his role temporarily to ensure a smooth transition. Jørgensen has been CEO since 2017 and played a pivotal role in the company’s expansion, particularly in the obesity treatment market, which has been a significant growth driver for Novo Nordisk in recent years. Novo Nordisk said a search for Lars Fruergaard Jørgensen’s successor has begun.
SNY to Buy Vigil Neurosciences to Strengthen Neurology Pipeline
Sanofi announced an agreement to acquire Vigil Neuroscience, which is making innovative TREM2-based therapeutics for neurodegenerative diseases, for a total equity value of around $470 million ($8 per share in cash). The acquisition will add Vigil’s investigational oral small-molecule TREM2 agonist, VG-3927, which will be developed in a phase II study for treating Alzheimer’s disease. However, Sanofi is not acquiring VGL101, Vigil’s second molecule program, which is being developed for another neurodegenerative disease.
Pfizer’s New Deal for PD-1/VEGF inhibitor With China’s 3SBio
Pfizer announced an exclusive deal to acquire global (ex-China) rights to SSGJ-707, a bispecific PD-1/VEGF antibody developed by Chinese biotech 3SBio, for an upfront payment of $1.25 billion. The deal includes up to $4.8 billion in milestone payments, tiered double-digit royalties, and a $100 million equity investment in 3SBio. SSGJ-707 is being developed for cancers such as non-small cell lung cancer and metastatic colorectal cancer, with a phase III trial expected this year. Unlike existing PD-1 therapies, SSGJ-707 targets both PD-1 and VEGF, potentially offering a stronger anti-tumor response. The deal is set to be closed in the third quarter.