The corporate behind weight-loss jab Wegovy and diabetes drug Ozempic can have a boardroom clear-out, with seven board members together with the chairman set to depart.
Novo Nordisk on Tuesday stated chairman Helge Lund, vice chair Henrik Poulsen and 5 administrators won’t stand for re-election at a rare investor assembly in November.
The departures happened after a disagreement between the board and its majority shareholder over its future governance.
It is the most recent in a raft of adjustments on the Danish firm, which welcomed a brand new chief govt in August and introduced it would lay off 9,000 staff in September.
Final month the agency issued a warning on income because of elevated competitors from US rivals, and introduced a cost-savings programme as it cut its profit growth forecast for the third time this year.
Widespread adoption of Novo Nordisk’s Ozempic diabetes therapy, which is usually used off-label as a weight reduction drug, and Wegovy had boosted its share value to the purpose the place in summer time 2024 it was Europe’s most-valuable firm.
Current competitors from rivals like Eli Lilly has eroded that valuation, and shares in Novo Nordisk dipped one other 1.7% on the brand new of a boardroom shake-up.
The departures come after a disagreement between board members from the pharmaceutical firm and its majority shareholder, the non-profit Novo Nordisk Basis, on the extent of adjustments wanted.
The Novo Nordisk Basis owns 28.1% of the corporate’s shares, however holds a three-quarter share of the voting rights, which signifies that it holds plenty of sway with how the corporate is run and who holds senior roles.
Outgoing chair Mr Lund stated that the Novo Nordisk board had proposed bringing in a number of new board members so as to add new expertise, however the Novo Nordisk Basis “wished a extra in depth reconfiguration”.
The Basis efficiently pushed for the elimination of former chief executive Lars Fruergaard Jorgensen in May.
The present chairman of the Novo Nordisk Basis, Lars Rebien Sorensen, who served because the pharma’s chief govt from 2000 to 2016, is being put ahead to interchange present chairman Mr Lund, the inspiration stated.
Mr Sorensen stated the pharmaceutical firm had been “too sluggish in recognising basic market adjustments” as using its medication turned mainstream and rivals launched rival therapies.
