The pharmaceutical firm responsible for producing the anti-obesity treatment Wegovy and blood sugar drug Ozempic is undergoing a major leadership overhaul, with seven board members, including the board chair, set to depart.
The Danish company announced on Tuesday that chairman Helge Lund, deputy chairman Henrik Poulsen, and five directors will not stand for re-election at an extraordinary investor meeting taking place in November.
These departures follow a disagreement between the directors and its controlling stakeholder regarding the company's future governance.
This represents the most recent in a series of transformations at the Danish drug company, which appointed a new chief executive in August and announced plans to lay off thousands of employees in September.
Last month, the firm issued a warning about earnings due to increased competition from American competitors and unveiled a expense-reduction initiative as it cut its earnings outlook for the third instance this year.
The broad usage of the company's Ozempic diabetes treatment, frequently used for unapproved purposes as a slimming aid, and Wegovy had elevated its stock value to the point where, in mid-2024, it was the continent's highest-valued firm.
Recent competition from competitors such as Eli Lilly has eroded that valuation, and shares in Novo Nordisk declined another 1.7% on the announcement of the leadership reshuffle.
The departures originate from a disagreement between directors from the pharmaceutical company and its majority shareholder, the non-profit Novo Nordisk Foundation, on the extent of changes required.
The Novo Nordisk Foundation holds over a quarter of the company's shares, but commands a three-quarter share of the decision-making power, which suggests that it wields significant influence over how the corporation is managed and who holds executive positions.
Outgoing chair Mr Lund commented that the Novo Nordisk board had suggested introducing several fresh directors to incorporate additional expertise, but the Novo Nordisk Foundation "wanted a more extensive reconfiguration".
The charitable entity effectively secured the ouster of ex-CEO Lars Fruergaard Jorgensen in May.
The present head of the foundation, Lars Rebien Sorensen, who served as the pharma's chief executive from 2000 to 2016, is being put forward to succeed current chairman Mr Lund, the organization announced.
Lars Sorensen observed that the pharmaceutical company had been "too slow in acknowledging core industry shifts" as the use of its medications became widespread and rivals introduced competing products.
