A leadership shakeup at what was once Europe’s most valuable company is likely to be cemented Friday as Novo Nordisk’s controlling shareholder tightens it’s grip on the weight-loss drugmaker, even as minority shareholders express discontent.
Novo has found itself in an increasingly chaotic situation as of late, with shares plunging and investor confidence waning, as its role as the leading player in the highly lucrative weight-loss space is being called into question.
The maker of diabetes and weight-loss drugs last month announced an Extraordinary General Meeting for Nov. 14 to replace its independent board members, including Chair Helge Lund, after it became impossible to reach an agreement between the views of the current board and the Novo Nordisk foundation board — the company’s majority shareholder.
Norges Bank Investment Management (NBIM), one of the larger minority shareholders, said earlier this week it would abstain from voting at Friday’s EGM, indicating discontent. Other shareholders, such as California State Teachers’ Retirement System, have also said they’ll vote against the proposal. NBIM and CalSTRS both declined to comment further.
Lund will be replaced by company veteran Lars Rebien Sørensen, already chair of the Foundation board. The 71-year-old also served as Novo Nordisk CEO between 2000 and 2016.
