Novo Nordisk chairman and directors resign following board disagreements
The logos of Danish drugmaker Novo Nordisk, maker of blockbuster diabetes and weight loss treatments Ozempic and Wegovy, are seen outside its building as the company presents its annual report at Novo Nordisk on February 5, 2025 in Bagsvaerd, Denmark.
Mads Claus Rasmussen | Afp | Getty Images
Several Novo Nordisk Board members will resign from their positions after conflicts arose with the majority shareholder over the composition of the company.
The Danish pharmaceutical giant, known for its weight-loss and anti-diabetes drugs, said on Tuesday that board members and the Novo Nordisk Foundation – the company’s majority shareholder – had failed to reach an agreement on the future composition of the board.
“The Board proposed a renewal focused on adding selected new competencies while maintaining continuity, while the Foundation Board wanted a more comprehensive reconfiguration,” said Helge Lund, Chairman of the Board.
The foundation proposes that its current chairman, Lars Rebien Sørensen, also become chairman of the board.
There is no general disagreement over the company’s strategy, but the Novo Nordisk Foundation would like to see faster decision-making from the board, Sørensen said, according to comments seen by Reuters.
He added that the board was too slow to recognize market changes in the U.S. and that there were disagreements over how to manage the CEO change. The foundation wanted to appoint someone quickly, while the board wanted a more comprehensive process that considered both external and internal candidates.
Sørensen, a former CEO of Novo, initially joined the board in May this year as an observer to oversee the company’s selection of its new CEO. The 71-year-old is now applying to become CEO.
The foundation said Sørensen will lead the board with two main objectives: to support the company’s transformation plans and regain growth momentum, and to develop a plan for the appointment of a new chairman who can “successfully lead the company into the 2030s.”
Novo’s Copenhagen-listed shares provisionally closed down 1.3% at the close on Tuesday.
Chairman Helge Lund, deputy chairman Henrik Poulsen and independent board members Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law and Martin Mackay will not stand for election at the extraordinary general meeting, the company said.
Kasim Kutay and the employee-elected board members Elisabeth Dahl Christensen, Liselotte Hyveled, Mette Bøjer Jensen and Thomas Rantzau will remain on the board.
Meanwhile, the foundation is proposing that Cees de Jong become deputy chairman and Britt Meelby Jensen, Mikael Dolsten and Stephan Engels become members.
Novo Nordisk said the extraordinary general meeting would take place on November 14.
Novo has had a tumultuous year as the company faces increasing competition in the obesity space. Lars Fruergaard Jørgensen was ousted as CEO in May and replaced by Mike Doustdar.
Doustdar has vowed to restart the company after a period of weaker growth. As part of this realignment, Novo is cutting approximately 11.5% of its global workforce to simplify its business and reallocate resources to its diabetes and obesity businesses.
