Novo Nordisk Shake-Up as Foundation Moves to Regain Control

Novo Nordisk's primary investor has taken steps to gain control of the pharmaceutical company's board, pledging to concentrate more on the crucial U.S. market in order to rejuvenate sales of the highly successful weight-loss medication Wegovy, following the resignation of Novo's chair and six independent board members.

The non-profit Novo Nordisk Foundation, which merges business interests with charitable efforts, announced its intention to nominate its own chair, Lars Reiben Sorensen—a former CEO of Novo—to lead the board of the Danish pharmaceutical company for the next two to three years.

Novo disclosed that current chair Helge Lund and six other independent board members would resign next month after a disagreement with the foundation regarding the speed of transformation within the company.

Also Read: FDA Approves Amgen TEZSPIRE for Chronic Rhinosinusitis

This conflict introduces new turmoil to a firm that ascended to become Europe's most valuable company last year due to the remarkable success of Wegovy, only to see its stock value drop by over 40% this year as competitor Eli Lilly captured market share.

The foundation criticized the departing board for being too slow to adapt to changes in the vital U.S. market and for being overly cautious regarding management alterations. It emphasized the necessity to enhance focus on the expanding direct-to-consumer and mass markets.

Sorensen stated that there was a desire for comprehensive changes on Novo's board, but expressed support for the new CEO Mike Doustdar, who assumed his role in August and has initiated significant job reductions along with a strategy to realign the company with its primary markets.