Novo Nordisk is already making even more dramatic moves in its boardroom. The Danish pharmaceutical giant is best-known for its weight-loss medication Wegovy and diabetes treatment Ozempic. The company is about to return to its leadership’s roots. This includes the chairman and the vice chair, who will all four resign before an extraordinary investor meeting scheduled for mid-November.
Helge Lund, the current chairman of Novo Nordisk, recently announced that he would not seek re-election. This decision is made all the more surprising by the simultaneous announcement that vice chair Henrik Poulsen will leave the board. These departures are only the tip of the iceberg, though, as five other directors have decided not to seek re-election.
This change in leadership comes after a stormy period for the diabetes giant. The company brought in a new chief executive in August, suggesting a possible new course in its long-standing strategy. The challenges have been mounting. In September, diabetes giant Novo Nordisk announced plans to cut 9,000 employees as part of a “restructuring” designed to save costs. This decision is in line with the company’s attempts to cut costs and improve efficiency amid growing US competition from its American counterparts.
The additional pressure came from Novo Nordisk’s third downward revision of profit growth expectations for this year. The company provided a surprise profit warning, blaming the shortfall on increased competition in the sector. Novo Nordisk is clearly anticipating a crowded market in weight-loss and diabetes medications. To maintain their edge, the business is actively evolving their approach.
The new extraordinary investor meeting will provide an opportunity for shareholders to discuss these developments in depth. They’ll determine how their company moves forward together as well. There are big leadership changes looming on the near horizon. Stakeholders will be eager to see how these changes will affect Novo Nordisk’s day-to-day work and bottom line.