Photo taken during the company’s annual report presentation at Novo Nordisk in Bagsvaard, Denmark, on February 5, 2025. A flag emblazoned with the logo of Novo Nordisk, the Danish pharmaceutical company that makes the blockbuster diabetes and weight loss treatments Ozempic and Wigovy.
Mads Klaus Rasmussen | AFP | Getty Images
A shake-up of the management of what was once Europe’s most valuable company is likely to be solidified on Friday, as Novo Nordisk’s controlling shareholder tightens its grip on the weight-loss drug maker, despite minority shareholders expressing dissatisfaction.
Novo has recently found itself in an increasingly turbulent situation, with its share price plummeting and investor confidence declining, calling its role as a leading player in the high-margin weight loss space into question.
The diabetes and weight loss drug maker announced last month that it would hold an extraordinary general meeting of shareholders on November 14 to replace the members of its independent board, including Chairman Helge Lund, after it became impossible to reach an agreement between the views of the current board and the Novo Nordisk Foundation Board of Directors, the company’s majority shareholder.
One of the minority shareholders, Norges Bank Investment Management (NBIM), expressed dissatisfaction earlier this week by saying it would abstain from voting at Friday’s general meeting. Other shareholders, including the California Teachers Retirement System, have also indicated they will vote against the proposal. Both NBIM and CalSTRS declined further comment.
Mr. Lund will be succeeded by company veteran Lars Levien Sørensen, who is already chairman of the foundation board. The 71-year-old also served as CEO of Novo Nordisk from 2000 to 2016.
The foundation also proposed that Cies de Jong become vice-president and that Michael Dorsten, Britt Melby Jensen and Stefan Engels become members.
Early Friday morning, Mr. Novo announced that Mr. Dolsten, who was Pfizer’s head of research and development, had decided to withdraw his candidacy for the board due to personal circumstances. Novo shares fell 1.8% to $312.90 in morning trading.
“It’s rare for a company of this size to make this much change so quickly,” Andrew Pettigrew, a professor emeritus at Oxford University and an expert on the theory of change, told CNBC.
“It’s usually caused by a bad crisis that pushes them off a cliff, but it’s also a time when they probably didn’t see what was going on beneath them. In other words, they’re surprised by sudden changes. Usually that’s what is needed to overthrow an existing power group within a company, especially if they’ve been in power for a long time,” Pettigrew added.
Sorensen told analysts on a conference call after the announcement that the current board “has been too slow to recognize the significance of the changes in the U.S. market,” adding that two more members will be announced in due course.
Novo is widely seen as lagging behind its U.S. peers Eli Lilly Rival drugs Mounjaro and Zepbound quickly stole market share from Novo as they showed more significant weight loss at the highest doses.
Sorensen said in October that the proposed changes to the board were “a matter of urgency and scope,” but he also said the foundations underpinning Novo’s current strategy under new CEO Mike Doesder are “perfectly aligned.”
tough US market
Another rationale for the board shakedown is that the new structure will bring in more people with first-hand experience from a U.S. consumer perspective, which will help it navigate a difficult market. This comes amid increased competition from both Eli Lilly and so-called compounding pharmacies, which manufacture cheaper copycat versions of its drugs, and a shift toward direct-to-consumer sales.
Like many pharmaceutical companies, the United States is Novo’s largest market. In the first nine months of 2025, the US market accounted for 56% of total sales in Danish kroner terms.
But analysts expressed skepticism that the new board will deliver the desired experience. “Overall, the new board may actually look like it has very little commercial, big pharma expertise,” said Emmanuel Papadakis, an analyst at Deutsche Bank.
Novo shares have fallen 12% since the board shakeup announcement and are down 58% so far this year. Last week, the company announced lower-than-expected third-quarter results and lowered its full-year outlook, citing slower growth expectations for Ozempic and Wegoby.
This is just one of many dramatic events happening recently at the Danish pharmaceutical giant.
“There’s been a lot of activity this year that shows Novo is a contender,” said Morningstar analyst Karen Andersen. “With these new direct-to-patient markets emerging as a key element for future bariatric sales growth, and compounders remaining the true competitors in this market, it’s not hard to imagine that the board and management teams may not have the same vision for how Novo should respond,” she added.
Over the weekend, Novo pulled out of a dramatic bidding war with the US giant pfizer Experimental weight-loss drugs based on clinical-stage biotechnology Mezzalawithdrew from a deal that analysts described as unusual.
The board changes come just months after Novo appointed Mr. Duesdal as chief executive, replacing former CEO Lars Fluergaard Jorgensen and partially blaming him for the current trajectory of the company and its stock. Subsequently, Dusdahl announced an organizational restructuring that included laying off more than 10% of its workforce worldwide.
