Novo Nordisk A/S chairman Helge Lund is stepping down after a boardroom dispute over governance and will be replaced by Lars Rebien Sorensen, a previous leader of the company who now heads its biggest shareholder.
The move is part of a wider shakeup at the maker of Wegovy and Ozempic drugs, with more than half of the board members set to depart. It also comes not long after the company replaced its chief executive officer following a slump in the shares, as Novo has fallen behind US rival Eli Lilly & Co.
The overhaul followed a disagreement between the board and the Novo Nordisk Foundation, the biggest shareholder in Novo Nordisk, over the extent of a planned governance shakeup, Lund said in a statement.
“It has not been possible to reach a common understanding,” Lund said. “The board proposed a renewal focusing on addition of select, new competencies while also maintaining continuity, whereas the board of the foundation wanted a more extensive reconfiguration.”
After pioneering the new class of weight-loss drugs, Novo Nordisk has fallen behind Lilly in the booming market. New CEO Maziar Mike Doustdar, who took over in August, has announced plans to slash its workforce by 11 percent and to instill a “performance culture” to try to regain lost ground.
Novo shares traded 1.2 percent lower on Tuesday in Copenhagen. They’re down 56 percent over the past 12 months.
When previous CEO Lars Fruergaard Jorgensen was replaced with Doustdar, Sorensen joined the supervisory board, initially as an observer, with a full director’s role expected from next year. The foundation then issued a statement saying Sorensen had valuable experience and insights to share with Novo.
One of the wealthiest charitable organisations in the world, the Novo foundation controls the drugmaker via a two-tier share structure.
The latest moves will extend the turmoil at Novo, which was known for its stable corporate culture until the weight-loss boom prompted a surge in its shares that briefly made the company the most valuable in Europe. That was followed by a slump when rivals led by Lilly muscled into the market.
Novo has also been under pressure from US President Donald Trump’s push to lower drug prices. Trump recently touted plans to cut the cost of Ozempic, the blockbuster diabetes treatment, to just $150 a month.
In addition to Lund, Vice Chairman Henrik Poulsen and five independent board members will not stand for re-election, Novo said. Only five directors will remain, prior to an extraordinary general meeting on Nov. 14. Among them is Kasim Kutay, CEO of Novo Holding A/S, which oversees the foundation’s investments.
Novo also proposed several new members for election to the board, including former Pfizer Inc. Chief Scientific Officer Mikael Dolsten and ex-Danske Bank A/S Chief Financial Officer Stephan Engels. Helena Saxon, a former Investor A/B chief financial officer, was proposed for addition to the board next year.
Lund also recently departed his other board chair position — from energy giant BP Plc — after the gap between BP and its peers widened. The company reset its strategic direction earlier this year to return to focusing on oil and gas after a 2020 pivot into low-carbon ventures failed. Weeks later, after the new strategy received a lukewarm reception from investors, Lund said he would step down.
Sorensen previously served as CEO of Novo Nordisk from 2000 through 2016.
By Deirdre Hipwell
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