Novo Nordisk, the company known for the weight-loss medication Wegovy and the diabetes treatment Ozempic, is set to undergo significant changes in its leadership. On Tuesday, the firm announced that Chairman Helge Lund, Vice Chair Henrik Poulsen, and five other board members will not seek reelection at an extraordinary investor meeting scheduled for November.
This decision follows a series of recent shifts at the Danish pharmaceutical company, including the appointment of a new chief executive in August. Additionally, Novo Nordisk revealed plans to lay off 9,000 employees in September. Compounding these changes, the company recently issued a profit warning, citing increased competition from U.S. rivals and subsequently announced a cost-savings program after lowering its profit growth forecast for the third time this year.
The popularity of Ozempic and Wegovy had previously driven Novo Nordisk’s share price to new heights, making it the most valuable company in Europe by summer 2024. However, recent competition, including from companies such as Eli Lilly, has negatively impacted its valuation. Following the announcement of the board reshuffle, Novo Nordisk shares fell another 1.7%.
The upcoming departures are reportedly linked to disagreements between the board and the Novo Nordisk Foundation, which holds a majority of voting rights despite owning only 28.1% of shares. This foundation has significant influence over the company’s governance and recently succeeded in ousting former CEO Lars Fruergaard Jorgensen in May. Lars Rebien Sorensen, who was the company’s CEO from 2000 to 2016, has been proposed as a replacement for Chairman Lund.
Source: https://www.bbc.com/news/articles/czxknd9l474o?at_medium=RSS&at_campaign=rss