Novo Nordisk's new chairman has 'carte blanche' after board clear-out

STORY: A boardroom shake-up at Novo Nordisk has handed unprecedented power to its top shareholder, the Novo Nordisk Foundation.It's rattling investors despite calls for stronger leadership at the drugmaker behind weight-loss treatment Wegovy.Once Europe's most valuable firm thanks to the blockbuster obesity drug, Novo Nordisk has stumbled in the last year.Slowing sales and intensifying competition from U.S. rival Eli Lilly have eroded its market share.The Novo Nordisk Foundation holds more than three-quarters of the firm's voting shares.This week it pushed out Novo's board chairman and independent members for not acting quickly enough to stem the decline in its key U.S. market.Foundation chair Lars Rebien Sorensen - a former long-time Novo chief executive - will also become the company board chairman.The dual role is unprecedented in the firm's history.One analyst told Reuters that the move showed the Foundation was in full control.The Novo Nordisk Foundation says on its website that it plays an "arm's length" role in the company.It was set up to ensure financial and strategic stability of the Novo Group.While advancing scientific research and humanitarian causes.Novo's shares are down around 5% since the board shake-up.Extending a decline that has seen the stock lose two-thirds of its value since a 2024 peak.Its CEO is now leading a sweeping restructuring, including thousands of job cuts.

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