If you follow big companies or the booming business of weight-loss drugs, you might’ve heard something wild out of Denmark: Novo Nordisk’s entire board of independent directors just quit. Yup, all of them. The reason? A very public disagreement with the company’s controlling shareholder, the Novo Nordisk Foundation. This all went down just as the company is dealing with a bunch of other challenges—like job cuts, slowing sales, and tough competition. The timing couldn’t be worse. The foundation wants faster changes and more control, so they’re replacing the board with people they trust—including the foundation’s own chair, Lars Rebien Sørensen, who will now chair Novo’s board too. That’s a big shift. If you’re wondering what this means for the company, the stock, and what comes next, grab a coffee. We’re diving into the four biggest things to keep an eye on.
Power Struggles and Boardroom Drama
Let’s start with the big one: control. Novo Nordisk is technically a public company, but one group—the Novo Nordisk Foundation—holds over 70% of the voting power, even though it owns just about a quarter of the shares. That’s a lot of say-so for not owning most of the company.
The board, which is supposed to guide the company and represent all shareholders, wanted to bring in a few new faces while keeping some of the old crew. The foundation wanted a full shake-up. When the two sides couldn’t agree, the board basically said, “We’re out,” and decided not to stand for re-election. The foundation wasted no time. They’ve already lined up a new group, with their chair (who used to run Novo Nordisk) taking over.
What’s weird is that they didn’t even check in with other big shareholders first. That’s raised eyebrows, especially for folks who care about good corporate governance—aka doing things fairly and with transparency. The message? When one group has all the power, big changes can happen fast, even if not everyone is on board.
New CEO, Big Changes & Unfinished Plans
If you’re thinking, “Wait, didn’t they just get a new CEO?”—you’re right. In August, Novo Nordisk named Maziar Doustdar as CEO. He stepped in after the board let go of the previous one. So, there’s already been a leadership switch-up. And now, with a brand-new board incoming, it’s fair to ask: who’s really calling the shots?
The new CEO’s job was already tough. The company’s cutting about 9,000 jobs globally and trying to fix supply issues for its best-selling drugs. Plus, it’s trying to keep up with Eli Lilly and other rivals in the weight-loss drug space. Now, he’ll be doing all that while working with a completely new board—one handpicked by the foundation.
The foundation says they fully support Doustdar. But it’s hard not to wonder if he’ll have the freedom to lead or if he’ll constantly be looking over his shoulder. The company says it wants to move faster and make bolder decisions. But making real change takes teamwork. And right now, that team is brand new, which could slow things down just when they need to move quickly.
Wegovy, Weight-Loss Drugs, and the Growing Competition
You probably know Novo Nordisk for its weight-loss drug Wegovy. It launched before rival drugs like Eli Lilly’s Zepbound and got a lot of hype. But lately, things haven’t gone as planned.
Here’s the scoop: Novo couldn’t make enough Wegovy to meet demand. That opened the door for copycat versions from compounding pharmacies—basically, places that mix their own versions of drugs. Even though the FDA’s grace period for this kind of thing ended in May, these copycats are still everywhere. Novo says about 1 million people are using them in the U.S. And that’s cutting into Wegovy’s growth.
Novo has tried to fight back by launching its own pharmacy (NovoCare) and marketing more directly to customers. But progress has been slow. They’re also spending a ton—over $9 billion this year alone—to boost production. Still, they’ve had to cut their sales forecast, and their stock dropped more than 20% in one day back in July.
Add in some not-so-great clinical trial results for their next-gen drug (CagriSema), and you’ve got a company under pressure. Investors are watching closely. If Wegovy doesn’t bounce back, it’ll be hard for Novo to regain its momentum. And boardroom drama definitely doesn’t help that situation.
Investors Are Nervous—and It’s Showing in the Stock Price
Let’s talk money. Investors don’t love uncertainty, and Novo Nordisk has had plenty of it lately. That’s why the stock is down over 60% since last summer. And it’s not just the price—how investors value the company has changed big-time.
Take this stat: back in late 2024, the company was trading at nearly 31 times its expected earnings. As of now? That number is down to around 14.5 times. Other key metrics, like enterprise value to earnings or sales, have also been cut nearly in half. These aren’t small moves. They show investors are worried—not just about missed sales targets, but about whether the company’s leadership can steady the ship.
On the flip side, some folks might see opportunity here. The stock’s cheaper than it’s been in years. Free cash flow and dividend yields are both looking better. But let’s be real: price alone isn’t enough. Novo needs to prove it can deliver—on growth, strategy, and stability—before confidence comes back. Until then, the stock might stay in Wall Street’s penalty box.
Wrapping It Up: A Big Shake-Up with Big Questions
So, here we are. Novo Nordisk just hit the reset button on its board of directors. The Foundation wants faster action, a new voice at the table, and more support for the company’s transformation. But the way it happened—abrupt, top-down, and without broader investor input—has left a lot of people uneasy.
Still, let’s not forget the good stuff. Novo is a leader in diabetes and obesity treatments. There’s massive global demand for what they make. And financially, the company is still solid, with strong cash flow and a growing dividend. Its current valuation (about 10.4x trailing EBITDA and 13.9x trailing earnings) reflects a lot of the doubt priced in already.
The big question now? Whether this new leadership team can work together to fix what’s broken, without tripping over each other in the process. Investors will be watching closely to see if this boardroom reboot brings clarity—or more chaos.
Disclaimer: We do not hold any positions in the above stock(s). Read our full disclaimer here.
