Flags with the logos of Danish drugmaker Novo Nordisk, shaper of the blockbuster diabetes and weight-loss treatments Ozempic and Wegovy are pictures portion the institution presents the yearly study astatine Novo Nordisk successful Bagsvaerd, Denmark, connected February 5, 2025.
Mads Claus Rasmussen | Afp | Getty Images
A enactment shakeup astatine what was erstwhile Europe's astir invaluable institution is apt to beryllium cemented Friday arsenic Novo Nordisk's controlling shareholder tightens it's grip connected the weight-loss drugmaker, adjacent arsenic number shareholders explicit discontent.
Novo has recovered itself successful an progressively chaotic concern arsenic of late, with shares plunging and capitalist assurance waning, arsenic its relation arsenic the starring subordinate successful the highly lucrative weight-loss abstraction is being called into question.
The shaper of diabetes and weight-loss drugs past period announced an Extraordinary General Meeting for Nov. 14 to replace its autarkic committee members, including Chair Helge Lund, aft it became intolerable to scope an statement betwixt the views of the existent committee and the Novo Nordisk instauration committee — the company's bulk shareholder.
Norges Bank Investment Management (NBIM), 1 of the larger number shareholders, said earlier this week it would abstain from voting astatine Friday's EGM, indicating discontent. Other shareholders, specified arsenic California State Teachers' Retirement System, person besides said they'll ballot against the proposal. NBIM and CalSTRS some declined to remark further.
Lund volition beryllium replaced by institution seasoned Lars Rebien Sørensen, already seat of the Foundation board. The 71-year-old besides served arsenic Novo Nordisk CEO betwixt 2000 and 2016.
The instauration besides projected Cees de Jong to go vice seat and Mikael Dolsten, Britt Meelby Jensen and Stephan Engels to go members.
Early Friday, Novo said Dolsten, formerly caput of R&D astatine Pfizer, had decided to retreat his candidacy to the committee owed to idiosyncratic circumstances. Novo shares were down 1.8% to $312.90 successful greeting trading.
"It is uncommon that a institution of that standard to marque that grade of alteration that quickly," Andrew Pettigrew, Emeritus prof astatine University of Oxford, and an adept of theories of change, told CNBC.
"It's usually precipitated by immoderate atrocious crisis, which is throwing them disconnected a cliff, but astir apt besides a play erstwhile they were unsighted to what was going connected underneath them. In different words, they were amazed by a abrupt change, and it usually takes that to overthrow an existing powerfulness radical successful a company, particularly if they've been successful powerfulness for a agelong time," Pettigrew added.
The existent committee was "too dilatory successful recognizing the value of the marketplace changes successful the United States," Sørensen told analysts astatine a telephone pursuing the announcement, adding that 2 much members would beryllium announced successful owed course.
Novo is broadly viewed arsenic having fallen down U.S. adjacent Eli Lilly which has rapidly taken marketplace stock from Novo, arsenic its rival drugs Mounjaro and Zepbound person shown much pronounced value nonaccomplishment astatine the highest dose.
"It's a substance of urgency and scope," Sørensen said successful October astir the projected changes to the board, nevertheless besides saying the instauration is "fully aligned" down Novo's existent strategy nether caller CEO Mike Doustdar.
A challenging U.S. market
Another rationale for the committee cull is that a caller configuration would bring successful much radical with nonstop acquisition from a U.S. user position to assistance navigate the challenging market. It comes amid expanding contention some from Eli Lilly and alleged compounding pharmacies that marque cheaper copycat mentation of the drugs, and a displacement towards direct-to-consumer sales.
Like for galore pharmaceutical companies, the U.S. is Novo's largest market. In the archetypal 9 months of 2025, the U.S. marketplace accounted for 56% of full sales, measured successful Danish kroner.
Analysts, however, person expressed scepticism that the caller committee volition bring successful the intended experience. "On balance, it mightiness look the caller committee really possesses little alternatively than much commercial, ample pharma expertise," Deutsche Bank expert Emmanuel Papadakis said.
Novo shares person fallen 12% since the committee shakeup was announced and person mislaid 58% since the commencement of this year. Last week, the institution reported third-quarter results that missed estimates, and lowered the precocious range of its full-year guidance citing slower maturation expectations for Ozempic and Wegovy.
It's but 1 of galore melodramatic happenings taking spot astatine the Danish pharma elephantine lately.
"There person been truthful galore moves this twelvemonth that amusement Novo arsenic a conflicted company," noted Morningstar expert Karen Andersen. "With specified a caller direct-to-patient marketplace emerging arsenic a captious portion of aboriginal obesity cause income growth, and compounders remaining a existent rival successful the market, it's not hard to ideate that the boards and absorption mightiness not person the aforesaid imaginativeness for however Novo should respond," she added.
Over the weekend, Novo pulled out from a melodramatic bidding warfare against U.S. elephantine Pfizer implicit an experimental weight-loss cause by clinical-stage biotech Metsera, stepping distant from a woody analysts person described arsenic unusual.
The committee changes travel conscionable months aft Novo appointed Doustdar arsenic main executive, booting erstwhile CEO Lars Fruergaard Jørgensen, successful portion blaming him for the existent trajectory of the institution and its shares. Doustdar has since announced a reorganisation, including laying disconnected implicit 10% of employees globally.
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