The logo of Danish pharmaceutical company Novo Nordisk, maker of the blockbuster diabetes and weight loss treatments Ozempic and Wigovy, is seen outside the building during the presentation of its annual report at Novo Nordisk in Bagsvaard, Denmark, February 5, 2025.
Mads Klaus Rasmussen | AFP | Getty Images
some novo nordisk A board member is set to resign from his position after clashing with a controlling shareholder over the company’s structure.
The Danish pharmaceutical giant, known for its weight loss and diabetes drugs, announced on Tuesday that its board of directors and the company’s controlling shareholder, the Novo Nordisk Foundation, were unable to reach an agreement on the composition of its future board.
“While the Board proposed a renewal focused on maintaining continuity and adding selected new competencies, the Foundation Board wanted a broader reconfiguration,” said Helge Lund, Chairman of the Board.
The foundation is proposing that the current chairman, Lars Levien Sorensen, also become chairman.
Sorensen said there was no overall disagreement on corporate strategy, but that the Novo Nordisk Foundation wanted faster decision-making by the board, according to comments reported by Reuters.
He added that the board was too slow to recognize changes in the U.S. market and had disagreements about managing the CEO transition. The foundation wanted to appoint someone quickly, but the board wanted a more comprehensive process that considered both external and internal candidates.
Sorensen, Novo’s former CEO, joined the board as an observer in May to oversee the company’s selection of a new chief executive. The 71-year-old is currently running for chairman of the board.
The foundation said Sorensen will lead the board with two main goals. One is to support the company’s transformation plan and regain growth momentum, and the other is a plan to appoint a new chairman who can “successfully lead the company into the 2030s”.
Shares in Copenhagen-listed Novo were trading 2.3% lower as of 3:07 p.m. London time (10:07 a.m. ET).
The company announced that Chairman Helge Lund, Vice Chairman Henrik Poulsen, and independent directors Laurens Devereux, Andreas Fibig, Sylvie Grégoire, Christina Lo and Martin McKay will not stand for election at the EGM.
Kassim Kutai and the employee-elected members of the Board of Directors Elisabeth Dahl Christensen, Liselotte Hibberd, Mette Voyager Jensen and Thomas Rantzau will remain on the Board of Directors.
Meanwhile, the foundation is proposing that Cies de Jong become vice-chairman, and that Britt Melby Jensen, Michael Dorsten and Stefan Engels become members.
Novo Nordisk announced that an extraordinary general meeting will be held on November 14th.
Novo has had a tumultuous year, facing increasing competition in the obesity sector. Lars Fluergaard Jorgensen was fired as CEO in May and was replaced by Mike Doesder.
Dusdahl vowed to turn the company around after a period of slow growth. As part of its reset, Novo will cut approximately 11.5% of its global workforce as it seeks to simplify its operations and reallocate resources to its diabetes and obesity business.
