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Novo Nordisk's top investor moved to take control of the Danish drugmaker's board on Tuesday, pledging a stronger focus on the U.S. market to revive sales of weight-loss drug Wegovy, as the company's chair and six independent directors announced their resignations.The non-profit Novo Nordisk Foundation, which combines business ownership with philanthropy, said it would propose former CEO Lars Rebien Sorensen as the new board chair for two to three years.Current chair Helge Lund and six independent members will step down following a dispute with the foundation over the pace of change at the company.The shake-up comes after Wegovy's blockbuster success propelled Novo Nordisk to become Europe's most valuable company last year, only for shares to plunge over 40% this year as competitor Eli Lilly captured market share.The foundation criticized the outgoing board for being slow to recognize shifts in the key U.S. market and cautious on management changes, emphasizing the need to target growing direct-to-consumer and mass markets.Live EventsSorensen backed new CEO Mike Doustdar, who took over in August and initiated widespread job cuts and a refocus on key markets. "We are fully aligned behind that," Sorensen said.The resignations will take effect at an extraordinary shareholder meeting on Nov. 14, after the board failed to reach a "common understanding" on its composition. The foundation also proposed six new board members with deep experience in pharmaceuticals and related industries, all European."The U.S. is our daily bread," Sorensen said. "Having more representation of people that live in the U.S. would be great."Novo shares closed down 1.5% following the announcement.Analysts said the foundation is seeking greater influence over the company to restore sales and investor confidence. Doustdar's restructuring drive, including 9,000 global job cuts, has helped stabilize the share price, but challenges remain in the competitive U.S. market."The foundation wants more influence and a board aligned with its strategy," said Markus Manns, portfolio manager at Novo shareholder Union Investment.If approved, the board would consist of six shareholder-elected and four employee-elected members, down from eight shareholder-elected members. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onNovo Nordiskboard controlU.S. marketWegovyEli Lilly (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onNovo Nordiskboard controlU.S. marketWegovyEli Lilly(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Explore More Stories123
