Boardroom Restructuring at Wegovy Maker as Board Members Depart
The pharmaceutical firm responsible for producing the weight-loss injection Wegovy and blood sugar drug Ozempic is experiencing a major boardroom clear-out, with seven board members, along with the board chair, preparing to leave.
The Danish company revealed on Tuesday that board leader Helge Lund, vice chair Henrik Poulsen, and five board members will decline to seek renewal at an special shareholder gathering scheduled for November.
These exits come after a disagreement between the board and its majority shareholder regarding the firm's strategic direction.
This marks the most recent in a series of transformations at the Danish drug company, which appointed a fresh CEO in August and announced plans to lay off thousands of employees in September.
Last month, the firm alerted investors about earnings due to growing rivalry from US rivals and unveiled a expense-reduction initiative as it cut its profit growth forecast for the third time this year.
The broad usage of Novo Nordisk's Ozempic diabetes treatment, frequently used for unapproved purposes as a slimming aid, and Wegovy had elevated its share price to the extent where, in mid-2024, it was Europe's most-valuable company.
Current competition from rivals like Eli Lilly has eroded that valuation, and the company's stock declined another 1.7% on the news of the boardroom shake-up.
The departures originate from a difference of opinion between directors from the drug maker and its majority shareholder, the non-profit Novo Nordisk Foundation, on the extent of changes required.
The Novo Nordisk Foundation owns 28.1% of the company's shares, but controls a 75% portion of the decision-making power, which suggests that it wields considerable sway over how the corporation is operated and who holds executive positions.
Departing chairman Helge Lund commented that the Novo Nordisk board had proposed introducing several new board members to incorporate additional expertise, but the foundation "wanted a broader restructuring".
The Foundation effectively secured the ouster of ex-CEO Lars Fruergaard Jorgensen in May.
The current chairman of the foundation, Lars Sorensen, who was the company's CEO from 2000 to 2016, is being put forward to replace incumbent Helge Lund, the organization said.
Mr Sorensen observed that the drug manufacturer had been "insufficiently quick in acknowledging core industry shifts" as the use of its drugs became widespread and competitors introduced competing products.
