The logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic and Wegovy is seen outside theri building as the company presents the annual report at Novo Nordisk in Bagsvaerd, Denmark, on February 5, 2025.
Mads Claus Rasmussen | Afp | Getty Images
Several Novo Nordisk board members will step down from their positions after clashing with the controlling shareholder on the make-up of the firm.
The Danish pharma giant, known for its weight loss and diabetes drugs, said Tuesday that board directors and the Novo Nordisk Foundation — the firm’s controlling shareholder — had failed to reach an agreement on the future composition of the board.
“The Board proposed a renewal focusing on addition of select, new competencies while also maintaining continuity, whereas the Board of the Foundation wanted a more extensive reconfiguration,” said Helge Lund, chair of the board of directors.
The foundation is proposing that its current chair, Lars Rebien Sørensen, will also become chair of the board of directors.
There was no overall disagreement on the company strategy, however, the Novo Nordisk Foundation wanted faster decision-making from the board, Sørensen said, according to comments reported by Reuters.
He added that the board was too slow to recognize market changes in the U.S. and there was a disagreement on managing the change of CEO. The foundation wanted to quickly appoint someone, while the board wanted a more comprehensive process looking at both external and internal candidates.
Sørensen, a former CEO of Novo, initially joined the board of directors as an observer in May this year to help oversee the company’s pick of a new chief executive. The 71-year-old is now putting himself forward as chair of the board of directors.
The foundation said Sørensen would take the helm of the board with two main goals: Supporting the company’s transformation plans and regaining growth momentum, as well as a plan for the appointment of a new chair who can “successfully lead the company into the 2030s.”
Copenhagen-listed shares of Novo traded 2.3% lower as of 3:07 p.m. London time (10:07 a.m. ET).
Chair Helge Lund, Vice Chair Henrik Poulsen and the independent board members Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law and Martin Mackay will not stand for election at the Extraordinary General Meeting, the company said.
Kasim Kutay and employee elected board members Elisabeth Dahl Christensen, Liselotte Hyveled, Mette Bøjer Jensen and Thomas Rantzau will remain on the Board.
Meanwhile, the foundation is proposing that Cees de Jong become vice chair and Britt Meelby Jensen, Mikael Dolsten and Stephan Engels, become members.
Novo Nordisk said the Extraordinary General Meeting will take place on Nov. 14.
Novo has had a tulmutous year as it faces increasing competition in the obesity space. Lars Fruergaard Jørgensen was ousted as CEO in May and replaced by Mike Doustdar.
Doustdar has vowed to reset the company after a period of weaker growth. As part of that reset Novo is cutting around 11.5% of its global workforce as it looks to simplify its business and reallocate resources to its diabetes and obesity businesses.
