• The board overhaul follows mass resignations triggered by internal disputes over Novo's direction.
• Major minority holders and ISS have flagged governance and transparency concerns.
• Sorensen and CEO Doustdar recently pursued an aggressive but failed challenge to Pfizer's Metsera deal.

Novo Nordisk shares fell over 1% in premarket trading on Friday as investors braced for a decisive vote that will reinstall former chief executive Lars Rebien Sorensen as chairman.

The outcome is effectively guaranteed because Sorensen also leads the Novo Nordisk Foundation, which controls 77% of the drugmaker's voting rights. His return comes after a dramatic board rupture last month in which disagreements over the pace of change prompted more than half of the supervisory board to resign, according to a Bloomberg report. 

Minority shareholders, including Norway's sovereign wealth fund and CalSTRS, have opposed the overhaul. Proxy advisor ISS urged investors to abstain, citing“limited transparency and accountability to minority shareholders.”

Concerns Over Concentrated Power And Deal-Making Style

The vote will test investor tolerance for Sorensen's sweeping consolidation of control and his decision to tie Novo's turnaround to himself and new CEO Mike Doustdar. The duo recently mounted an aggressive but unsuccessful attempt to disrupt Pfizer's takeover of obesity biotech Metsera, a contest that escalated to the Oval Office when Doustdar challenged Pfizer CEO Albert Bourla to raise his bid.

Portfolio manager Markus Manns of Union Investment, which is backing the board changes, cautioned that Novo needs a“sound and sustainable” strategy to reclaim ground from Eli Lilly and diversify its pipeline.“What I don't want are bold actions or risky deals,” he said.

But others remain uneasy. Ketan Patel of Whitefriars described the shakeup as“unprecedented and unsettling,” noting that it highlights the mounting pressures on the company.

Competitive Pressures In The Obesity Drug Market

Novo is scrambling to regain momentum in the weight-loss market after losing ground to Eli Lilly. Its next-generation candidate CagriSema has underwhelmed, and while rivals advance novel compounds, Novo's upcoming offerings are largely reworked versions of its existing drugs, including an oral Wegovy and a higher-dose injection.

Sorensen's elevation gives him a second chance to reshape the company nearly a decade after concluding a 16-year CEO tenure that saw a 400% sales increase and the launch of Saxenda. Still, Novo struggled near the end of his run due to an insulin-pricing squeeze. His successor, Lars Fruergaard Jorgensen, went on to introduce Ozempic and Wegovy, propelling Novo into the top global pharma ranks.

Stocktwits Shows Bullish Mood

On Stocktwits, retail sentiment for Novo was 'bullish' amid 'high' message volume.

Novo Nordisk's stock has declined 27% so far in 2025.

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