Boardroom Turmoil at Novo Nordisk: Seven Directors Exit Amid Market Pressures

In a dramatic shift, Novo Nordisk, the pharmaceutical powerhouse behind the popular weight-loss drug Wegovy and the diabetes treatment Ozempic, is set for a major boardroom overhaul. On Tuesday, the company announced that seven key board members, including its chairman Helge Lund and vice chair Henrik Poulsen, will not seek re-election during an extraordinary investor meeting scheduled for November.

This mass departure follows growing tensions between the board and its majority shareholder, the Novo Nordisk Foundation, which owns 28.1% of the shares but wields three-quarters of the voting rights—indicating its substantial influence over corporate governance. The foundation has been advocating for a more extensive reconfiguration of the board, indicating that significant changes are deemed necessary given the current market challenges.

This turmoil comes on the heels of a serious warning from Novo Nordisk regarding profit forecasts due to rising competition in the U.S., particularly from rivals like Eli Lilly. This competitive pressure has had a noticeable effect on the company’s share price, which had soared last summer but has since dropped following their latest profit growth forecast adjustment—marking it the third such cut this year. In light of these pressures, Novo Nordisk also announced a cost-saving initiative that involves laying off about 9,000 staff.

Despite the setbacks, the firm had reached remarkable heights, briefly becoming Europe’s most valuable company, partly fueled by the broad adoption of Ozempic for off-label weight loss use. Incoming chairman Lars Rebien Sorensen, who previously served as CEO from 2000 to 2016, expressed that the company has been too slow to respond to significant market changes as its products have gained popularity and competitors have emerged with rival offerings.

This deepening crisis at Novo Nordisk highlights the evolving landscape in the pharmaceutical industry and the urgent need for companies to adapt quickly to maintain their market position.