Novo Nordisk Foundation Plans Board Overhaul Amid $70 Billion Market Cap Loss

Novo Nordisk has faced significant challenges in 2025, with its shares down roughly 45-50%, largely due to intensified competition from Eli Lilly's GLP-1 drugs and increased pricing pressures in the U.S. market. The company's largest shareholder, the Novo Nordisk Foundation, has pushed for a major board overhaul, resulting in the resignation of the current chair and six directors, and the appointment of former CEO Lars Rebien Sørensen as the new chair to drive strategic focus on the U.S. market and consumer engagement. Novo Nordisk announced major acquisitions to diversify beyond diabetes and obesity treatments, including the purchase of Akero Therapeutics and a licensing deal with Omeros Pharmaceuticals, signaling its intent to expand its portfolio. Despite these moves, investor sentiment remains cautious amid regulatory scrutiny and political pressure, notably from President Trump aiming to reduce drug costs. Financially, Novo Nordisk maintains robust profitability and growth prospects, with a strong revenue growth rate and financial stability metrics, though its share price reflects market pessimism about near-term challenges. Analysts note the board changes and competitive environment pose short-term risks, but long-term opportunities persist for the company to regain market share and accelerate growth.