Ozempic maker suffers boardroom exodus after row with shareholder

The initial success of Ozempic initially made Novo Nordisk Europe’s most valuable company - David J. Phillip/AP

The wealthy foundation behind Ozempic maker Novo Nordisk has seized control of the company in a boardroom coup after a row over the struggling group’s turnaround.

On Monday, the pharmaceutical giant said chairman Helge Lund and six independent directors would resign and be replaced by a group hand-picked by its biggest shareholder, the Novo Nordisk Foundation.

The drugmaker, which makes the anti-obesity jab Wegovy and Ozempic, said the decision came after a disagreement between the board and the foundation over a plan to rejuvenate the Danish company’s flagging fortunes.

The Novo Nordisk Foundation is the wealthiest charity in the world with £123bn in assets and the company’s largest shareholder, controlling 77pc of Novo.

The foundation has nominated five new directors to be appointed at an emergency meeting next month and a sixth to be appointed next year.

Lars Rebien Sørensen, the former chief executive of Novo, has been nominated to replace Mr Lund as chairman. Mr Lund recently left his position chairing BP after a disastrous attempt to focus the company on green energy.

Novo’s exodus amounts to the entire board, besides the foundation’s own investment boss and the four members elected by employees.

The rift between the company’s top shareholders and its board came to the fore after a slump in Novo’s performance.

The company makes the diabetes drugs Ozempic and Wegovy, which are used for weight loss. Both contain the ingredient semaglutide, which stimulates weight loss by making people feel full.

The initial success of the drugs led Novo to become Europe’s most valuable company, but shares have fallen by two thirds as it has faced competition from Eli Lilly, which makes rival drugs Mounjaro and Zepbound.

Novo’s own successor to Wegovy disappointed in weight loss trials, while the Trump administration has put pressure on the company to cut prices.

“Following dialogue with the Novo Nordisk Foundation regarding the future composition of the board of directors, it has not been possible to reach a common understanding,” Novo said.

“The board proposed a renewal focusing on [the] addition of select, new competencies while also maintaining continuity, whereas the board of the foundation wanted a more extensive reconfiguration.”

It said the new board’s first priority would be “implementing its transformation plans and regaining the company’s growth momentum”.

Mr Sørensen said: “Given the fast-moving environment in which Novo Nordisk operates, we believe that it is in the best interest of the company and its shareholders to implement a board renewal as soon as possible, rather than wait until the ordinary annual general meeting in March next year.”

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He said the foundation fully supported the company’s new chief executive, Mike Doustdar, who replaced ousted boss Lars Fruergaard Jørgensen earlier this year, as well as recent plans to cut 9,000 jobs.

Novo’s shares fell by 2.4pc after the announcement.

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