Novo Nordisk Foundation Ousts Board in Sweeping Power Move

The powerful Novo Nordisk Foundation, the largest shareholder in pharmaceutical giant Novo Nordisk, has executed a dramatic boardroom takeover after a sharp disagreement about the company’s strategic direction. The move, which saw chairman Helge Lund and six independent directors ousted, signals the Foundation’s determination to steer Novo through turbulent times and restore its former dominance in the weight loss and diabetes drug market.

Novo Nordisk, famed for its groundbreaking anti-obesity drugs Ozempic and Wegovy, once soared to become Europe’s most valuable business. Yet competition, particularly from Eli Lilly’s rival Mounjaro and Zepbound, has battered its share price and challenged its crown. Recent internal trials on a successor to Wegovy disappointed investors, compounding pressure from shifting regulations, including US government demands to reduce drug prices.

The Foundation, holding 77 per cent of Novo Nordisk’s shares and armed with assets valued at an astonishing £123bn, acted swiftly following a dispute over revitalisation plans. While the outgoing board favoured selective renewal and some continuity, Foundation leaders pushed for a sweeping reconfiguration to tackle shrinking growth head-on. Their intervention marks a rare but forceful assertion of shareholder power in the European healthcare sector.

Five new directors will be installed at an emergency meeting next month, with a sixth to follow next year. Leading this transformation is Lars Rebien Sørensen, former Novo chief executive, who will take over as chairman. Sørensen emphasised the need for immediate action rather than waiting until the next scheduled general meeting, reflecting the fast-changing environment facing the pharmaceutical industry.

The Foundation expressed full support for new chief executive Mike Doustdar as well as the company’s controversial plan to cut 9000 jobs. Despite the bold shake-up, markets reacted with caution and the company’s shares dropped by 2.4 per cent after the announcement.

This episode signals a pivotal moment for Novo Nordisk’s future in an increasingly competitive and politically charged landscape. Observers will be keenly watching whether the Foundation’s high-stakes gambit can reverse the company’s fortunes and reassert its leadership as global demand for weight loss treatments accelerates.