Boardroom Battle at Novo Nordisk: Leadership Shake-up Amid Market Challenges

Novo Nordisk faces leadership turmoil as its chairman and six board members resign amid disputes with the controlling shareholder. The company's struggles follow its success with the Wegovy drug. The selection of a new CEO and chairman aims to reignite growth amid competitive pressures from rivals like Eli Lilly.

Novo Nordisk witnessed a significant upheaval in its leadership ranks on Tuesday as its chairman and six board members tendered their resignations. The departures follow a contentious disagreement with the company's controlling shareholder over board structure and strategic direction, marking a challenging chapter for the pharmaceutical giant.

Renowned for its previously successful weight-loss drug Wegovy, Novo Nordisk has faced intense competition recently, especially from rival pharmaceutical company Eli Lilly. The foundation, which holds sway over the Danish drugmaker, criticized the outgoing board members for their failure to adapt swiftly to market shifts, particularly in the pivotal U.S. market.

The non-profit Novo Nordisk Foundation has appointed former Novo CEO Lars Rebien Sorensen as a temporary chairman, aiming to restore investor confidence. While the company's stock has seen recent declines, new CEO Mike Doustdar's strategic reshuffle, including significant job cuts, is underway to reclaim its market standing.

(With inputs from agencies.)