Novo Nordisk's Largest Investor Seizes Board Control Amid Market Struggles

The Novo Nordisk Foundation, the largest investor in Novo Nordisk, is moving to take control of the drugmaker's board in response to the company's recent challenges in the obesity drug market, particularly with its weight-loss drug Wegovy. The foundation criticized the current board for being too slow to adapt to shifts in the key U.S. market and for cautious management changes, leading to a decline in sales and significant layoffs. As a result, the current chair Helge Lund and six independent members announced their resignations, with former CEO Lars Rebien Sørensen proposed as the new board chair to lead a strategic refocus on direct-to-consumer and mass markets. This shake-up aims to restore investor confidence and stabilize the company amid intense competition, especially from Eli Lilly's rival products. The proposed board changes are expected to be confirmed at an extraordinary shareholder meeting in November, where the foundation's nominees will likely be elected due to its majority voting power. The restructuring also includes support for CEO Mike Doustdar's efforts, who has initiated widespread job cuts and a refocus on key markets.