The logos of Danish pharmaceutical company Novo Nordisk, maker of the successful diabetes and weight loss treatments Ozempic and Wegovy, are seen outside the building as the company presents the annual report at Novo Nordisk in Bagsvaerd, Denmark, February 5, 2025.
Mads Claus Rasmussen | AFP | fake images
Several Nordisk The members of the board of directors will resign from their positions after clashing with the majority shareholder over the composition of the company.
The Danish pharmaceutical giant, known for its weight loss and diabetes drugs, said on Tuesday that board directors and the Novo Nordisk Foundation, the company's majority shareholder, had failed to reach an agreement on the future composition of the board.
“The board proposed a renewal focused on the addition of select new competencies while maintaining continuity, while the foundation board wanted a broader reconfiguration,” said Helge Lund, chairman of the board of directors.
The foundation proposes that its current president, Lars Rebien Sørensen, also chair its board of directors.
There was no general disagreement over the company's strategy, however, the Novo Nordisk Foundation wanted faster decision-making by the board of directors, Sørensen said, according to comments reported by Reuters.
He added that the board took too long to recognize market changes in the United States and there was a disagreement over the management of the CEO change. The foundation wanted to appoint someone quickly, while the board wanted a more thorough process that vetted both external and internal candidates.
Sørensen, former CEO of Novo, initially joined the board as an observer in May this year to help oversee the company's election of a new CEO. The 71-year-old is now running as chairman of the board of directors.
The foundation said Sørensen would take the helm of the board with two main objectives: supporting the company's transformation plans and regaining growth momentum, as well as a plan for the appointment of a new chairman who can “successfully lead the company into the 2030s.”
Copenhagen-listed Novo shares preliminarily closed down 1.3% as Tuesday's trading session ended.
Chairman Helge Lund, Vice Chairman Henrik Poulsen and independent members of the board of directors Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law and Martin Mackay will not stand for election at the Extraordinary General Assembly, the company reported.
Kasim Kutay and the employee-elected members of the board of directors Elisabeth Dahl Christensen, Liselotte Hyveled, Mette Bøjer Jensen and Thomas Rantzau will remain on the board of directors.
Meanwhile, the foundation proposes that Cees de Jong be vice president and Britt Meelby Jensen, Mikael Dolsten and Stephan Engels be members.
Novo Nordisk said that the Extraordinary General Assembly will be held on November 14.
Novo has had a tumultuous year facing increasing competition in the obesity space. Lars Fruergaard Jørgensen was removed as CEO in May and replaced by Mike Doustdar.
Doustdar has vowed to revive the company after a period of weaker growth. As part of that reset, Novo is cutting about 11.5% of its global workforce as it looks to simplify its business and reallocate resources to its diabetes and obesity businesses.
