Novo’s main shareholder pushes out more than half of company’s board

Core Insights - Novo Nordisk is facing significant challenges, including underperforming sales, a workforce reduction of 9,000 employees, and a recent CEO change, with Maziar Mike Doustdar taking over in August [4][6] - The company's dominant position in the obesity treatment market has been threatened by competition from Eli Lilly's Zepbound and cheaper knockoff versions from drug compounders [4] - The Novo Foundation, which holds a substantial stake in Novo Nordisk, is pushing for a major board overhaul, seeking to replace more than half of the current board members due to perceived slow responses to market changes [6] Company Governance Changes - An extraordinary general meeting is scheduled for November to elect new board members, as the current board is criticized for its slow recognition of changes in the obesity drug market [6] - The current board chair, Helge Lund, and several independent members will not stand for re-election, while four employee-elected members will remain [6] - Lars Rebien Sørensen, former CEO of Novo Nordisk, is proposed as the new corporate board chair for a term of no more than three years [6] Market Context - The layoffs and board changes come in the wake of lagging growth for the weight loss drug Wegovy, which has been attributed to the company's slow adaptation to market dynamics [6] - The board's proposed renewal aims to add new competencies while maintaining continuity, contrasting with the foundation's desire for a more extensive reconfiguration [5]