Novo Nordisk (NYSE:NVO) shares dropped roughly 3.4% in early trading on Wednesday, adding to the previous session’s declines, after its largest shareholder unveiled plans for a major leadership shake-up at the company’s board.
The Novo Nordisk Foundation announced that current chair Helge Lund and six other independent board members will step down next month following disagreements with the foundation over the pace of organizational change.
The foundation intends to appoint Lars Rebien Sorensen — a former CEO of Novo Nordisk and currently the foundation’s chair — as company chair for a term of up to three years.
In addition to this leadership change, the foundation also proposed six new board members, signaling a significant realignment of the company’s governance structure.
The move marks one of the most consequential interventions by the foundation in recent years, coming at a time when Novo Nordisk’s weight-loss drug Wegovy has cemented the company as one of Europe’s most valuable firms.