COPENHAGEN: Novo Nordisk will replace more than half its board members, including the chair, as the Ozempic and Wegovy maker restructures amid rising competition.
The Danish pharmaceutical giant announced an extraordinary shareholders meeting for November 14 following disagreements between the board and majority shareholder about future governance.
Current board chair Helge Lund said the board concluded an extraordinary general meeting was necessary “to provide clarity on the future governance of Novo Nordisk”.
Seven of the current 12 board members will give up their seats.
The company faces increasing competition for its anti-obesity treatments and recently announced 9,000 layoffs alongside a cost-savings programme.
Novo Nordisk has cut its profit growth forecast three times this year as sales slow and competition grows in its key US market.
Lund said the board had proposed bringing in several new members to add competencies, while the majority shareholder “wanted a more extensive reconfiguration”.
The Novo Nordisk Foundation announced Lars Rebien Sorensen, its current chairman and former company CEO from 2000-2016, will replace Lund as board chair.
Sorensen said the foundation “fully supports new chief executive Mike Doustdar and his transformation plan”.
The non-profit Novo Nordisk Foundation owns about 25% of shares but holds 75% of voting rights.
The foundation also proposed Cees de Jong to replace Henrik Poulsen as vice chair.
Board members Laurence Debroux, Andreas Fibig, Sylvie Gregoire, Christina Law and Martin Mackay are also stepping down.
Novo Nordisk shares were down 1.4% in afternoon trading following the announcement. – AFP
