Latest news with #NovoNordiskFoundation
Forbes
27-05-2025
- Business
- Forbes
3 Governance Lessons From Novo Nordisk's Stunning CEO Dismissal
Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic and Wegovy, ... More outside their building in Bagsvaerd, Denmark (Photo by Mads Claus Rasmussen / Ritzau Scanpix / AFP) / Denmark OUT (Photo by MADS CLAUS RASMUSSEN/Ritzau Scanpix/AFP via Getty Images) The abrupt firing of Lars Fruergaard Jørgensen exposed a fatal flaw in Scandinavia's most stable ownership model: too much separation between social and business considerations. But the governance reforms sparked by this crisis may be exactly the fix Novo Nordisk needed. When Novo Nordisk announced on May 16 that CEO Lars Fruergaard Jørgensen was "stepping down," the pharmaceutical world was stunned. The real shock wasn't the departure itself—it was how it happened. The board leaked the decision before informing the CEO, who told Danish broadcaster TV2 that he never saw it coming. This mess exposed vulnerabilities in one of the world's most respected ownership models—foundation-owned firms—used by corporate giants from Patagonia to Ikea to the Tata Group. The Novo Nordisk crisis may offer a chance to fix these cracks, and Carlsberg's foundation structure shows how. Jørgensen's firing followed a spectacular market meltdown. Novo Nordisk shares plunged almost 50% since mid-2024 as U.S. rival Eli Lilly stole market share. The company lost approximately $300 billion in market value from its peak of $615 billion in March 2024. WASHINGTON, DC - SEPTEMBER 24: Novo Nordisk President and CEO Lars Fruergaard Jorgensen (Photo by ... More) This collapse happened despite Novo Nordisk operating in what analysts call the most lucrative pharmaceutical market in decades. The company stumbled badly. Compound copycats—temporarily allowed to ease supply shortages—hurt demand. Disappointing trial results for its next-generation obesity drug shook investor confidence. Meanwhile, Eli Lilly got its drugs off shortage lists faster and ramped up manufacturing more effectively. Even though Novo Nordisk's Foundation had good reason to worry about Jørgensen's performance, the company is organized to ensure that the Foundation stays out of Novo Nordisk's operations. Yet, this was clearly not the case in Jørgensen's firing. Novo Nordisk Board Chair Helge Lund said explicitly that the decision came from "an expression from our main owners to accelerate the CEO succession process." This level of interference broke the rules that Novo Nordisk seemed to have established. Here's how the Novo Nordisk Foundation is structured. Novo Nordisk Foundation has full ownership of Novo Holdings A/S, which is their profit arm. The 'A/S' is equivalent to 'Inc' in the US or 'PLC' in the UK, signaling a joint-stock, limited liability company. The Foundation appoints two members to Novo Holdings A/S, which owns 28.1% of the share capital of Novo Nordisk A/S. The Novo Nordisk Foundation, then, is quite removed from the Novo Nordisk board, but retains some influence through the Novo Holdings. This helps to separate the Foundation's philanthropic activities from the pharma business, which generates the philanthropic funds from their business activities. This setup was designed to prevent the Foundation from meddling in the operations of the business – the type of meddling seen with Jørgensen's firing. Chair of the Novo Nordisk Foundation Board, Lars Rebien Sorensen. Photo taken February 17, 2014. ... More (Photo by JEAN-FRANCOIS MONIER) But the recent crisis shows that too much separation creates its own problems. When foundations feel cut off from their companies, they may act rashly. In the case of the Novo Nordisk Foundation, these feelings may have been especially acute, because the Foundation Board Chair, Lars Rebien Sørensen, ran Novo Nordisk from 2000 to 2016. In 2015, the Harvard Business Review placed him at the top of their 'Best-Performing CEOs' list. Sørensen likely had strong opinions about Jørgensen's performance. Yet, Novo Nordisk Foundation did not waste this crisis. It is taking steps to fix the original problem. Sørensen will now sit in on Novo Nordisk board meetings as an observer and will also be nominated for a full board position at the 2026 Annual General Meeting. This marks a major shift toward dual-board representation. The question is whether this change undermines the foundation model or improves it. Industrial foundations are nonprofits that combine business ownership with philanthropy while prioritizing social goals. Foundation ownership challenges traditional shareholder capitalism's profit-first mentality and is gaining recognition as a viable way to control large public companies. Foundation-owned firms are common in Denmark, controlling about 25 of the country's 100 largest companies and 60% of its stock market value. Examples include Bertelsmann, Heineken, Ikea, Robert Bosch, Rolex, and the Tata Group. Although the evidence is not recent, a foundation-owned structure performs at least as well as dispersed ownership and family ownership, yet systematically performs better on its social impact. The key to their success is the clear separation of the foundation from the enterprises it owns: foundations advance social interests, businesses pursue profits. The foundation ensures the company doesn't violate core values but otherwise remains independent. Blur the boundaries between foundations and their companies, and the companies could lose focus while foundations develop conflicts of interest. But some communication is needed—if done right. Carlsberg shows how. Two of the Carlsberg Foundation's five board members sit on the brewery's board, including the Foundation Chair who serves as the company's Vice-Chair. This creates 'governance bridges'—formal channels that let foundations oversee without emergency interventions that can destabilize management and spook investors. Regular communication prevents the kind of crisis that hit Novo Nordisk. Some distance between foundations and companies helps both pursue their missions. But too much distance can trigger crises. Even well-designed governance separation becomes dangerous when communication breaks down during crises. Separation without communication channels can be as harmful as excessive meddling. I gained a genuine interest in this corporate form after interviewing the former CEO of Novo Nordisk, Mads Øvlisen, and 'father of CSR'. I became so intrigued that I investigated this form of ownership and also wrote about Yves Chouinard's decision to divest control of Patagonia to a trust. The Novo Nordisk crisis teaches three key lessons: Novo Nordisk's governance experiment faces close scrutiny in coming months. Whether the company can restore investor confidence while preserving foundation ownership's long-term stability will determine if this crisis becomes a cautionary tale or a successful reform model for foundation-controlled enterprises worldwide.
Globe and Mail
23-05-2025
- Business
- Globe and Mail
Pharma Stock Roundup: NVO CEO Resigns, SNY to Buy VIGL & More
This week, Novo Nordisk NVO announced the surprise resignation of its chief executive officer (CEO), Lars Fruergaard Jørgensen. Sanofi SNY announced the proposed acquisition of Vigil Neuroscience, a clinical-stage biotech focused on developing treatments for neurodegenerative diseases. Pfizer PFE announced a licensing deal with Chinese biotech 3SBio. The FDA granted approval to Roche 's RHHBY eye drug, Susvimo, for its third indication in the United States. Merck MRK and its Japanese partner Daiichi Sankyo began a pivotal study on ifinatamab deruxtecan in esophageal cancer. Here's a recap of the week's most important stories. NVO CEO Resigns Amid Ongoing Challenges Novo Nordisk announced that its CEO, Lars Fruergaard Jørgensen, will step down from his position. The decision can be attributed to increasing competitive pressure and recent market challenges that have led to a decline in the company's stock price since mid-2024. Also, the Novo Nordisk Foundation board asked for a CEO succession and an increased presence on the NVO board. Novo Nordisk Foundation controls the majority of votes at the Novo Nordisk annual general meeting. Accordingly, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join NVO's board as an observer for some time. Jørgensen's decision comes after a mutual agreement with the board, although he will remain in his role temporarily to ensure a smooth transition. Jørgensen has been CEO since 2017 and played a pivotal role in the company's expansion, particularly in the obesity treatment market, which has been a significant growth driver for Novo Nordisk in recent years. Novo Nordisk said a search for Lars Fruergaard Jørgensen's successor has begun. SNY to Buy Vigil Neurosciences to Strengthen Neurology Pipeline Sanofi announced an agreement to acquire Vigil Neuroscience, which is making innovative TREM2-based therapeutics for neurodegenerative diseases, for a total equity value of around $470 million ($8 per share in cash). The acquisition will add Vigil's investigational oral small-molecule TREM2 agonist, VG-3927, which will be developed in a phase II study for treating Alzheimer's disease. However, Sanofi is not acquiring VGL101, Vigil's second molecule program, which is being developed for another neurodegenerative disease. Pfizer's New Deal for PD-1/VEGF inhibitor With China's 3SBio Pfizer announced an exclusive deal to acquire global (ex-China) rights to SSGJ-707, a bispecific PD-1/VEGF antibody developed by Chinese biotech 3SBio, for an upfront payment of $1.25 billion. The deal includes up to $4.8 billion in milestone payments, tiered double-digit royalties, and a $100 million equity investment in 3SBio. SSGJ-707 is being developed for cancers such as non-small cell lung cancer and metastatic colorectal cancer, with a phase III trial expected this year. Unlike existing PD-1 therapies, SSGJ-707 targets both PD-1 and VEGF, potentially offering a stronger anti-tumor response. The deal is set to be closed in the third quarter. FDA Approves Roche's Susvimo for Diabetic Retinopathy The FDA approved Roche's eye drug, Susvimo, for treating diabetic retinopathy (DR). Susvimo is already approved for treating neovascular or 'wet' age-related macular degeneration and diabetic macular edema. The approval was based on one-year data from the phase III Pavilion study. Susvimo provides continuous delivery of a customized formulation of ranibizumab via the Port Delivery Platform (a refillable eye implant), offering an alternative treatment option to regular VEGF eye injections for patients at risk of vision loss from progression of diabetic retinopathy. MRK & Daiichi Begin Pivotal Study on Ifinatamab Deruxtecan in Esophageal Cancer Merck and partner Daiichi Sankyo announced the dosing of the first patient in the pivotal IDeate-Esophageal01 phase III study evaluating the efficacy and safety of ifinatamab deruxtecan (I-DXd) in certain patients with pretreated advanced or metastatic esophageal squamous cell carcinoma versus the physician's choice of chemotherapy. The study's primary endpoint is overall survival. Ifinatamab deruxtecan is also being evaluated in a phase III study in relapsed small cell lung cancer (SCLC). Ifinatamab deruxtecan is a part of Merck's collaboration with Daiichi Sankyo to co-develop and co-commercialize the latter's three DXd antibody drug conjugates or ADCs worldwide, except Japan. The other two ADCs are patritumab deruxtecan/MK-1022 and raludotatug deruxtecan/MK-5909. In August last year, Merck expanded the collaboration to co-develop and co-commercialize MK-6070, an investigational T-cell engager targeting delta-like ligand 3 (DLL3), which it obtained from its acquisition of Harpoon Therapeutics. Pfizer has a Zacks Rank #2 (Buy), while Novo Nordisk, Pfizer, Sanofi and Merck carry a Zacks Rank of 3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The NYSE ARCA Pharmaceutical Index has declined 3.8% in the past five trading sessions. Here's how the eight major stocks performed in the previous five trading sessions. In the last five trading sessions, Merck rose the most (4.1%) while Lilly declined the most (2.3%). In the past six months, Novartis rose the most (11.2%), while Novo Nordisk declined the most (34.0%). (See the last pharma stock roundup here: BAYRY Q1 Earnings, NVO & GSK's New Deals) What's Next in the Pharma World? Watch this space for regular pipeline and regulatory updates next week. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
23-05-2025
- Business
- Yahoo
Pharma Stock Roundup: NVO CEO Resigns, SNY to Buy VIGL & More
This week, Novo Nordisk NVO announced the surprise resignation of its chief executive officer (CEO), Lars Fruergaard Jørgensen. Sanofi SNY announced the proposed acquisition of Vigil Neuroscience, a clinical-stage biotech focused on developing treatments for neurodegenerative diseases. Pfizer PFE announced a licensing deal with Chinese biotech 3SBio. The FDA granted approval to Roche's RHHBY eye drug, Susvimo, for its third indication in the United States. Merck MRK and its Japanese partner Daiichi Sankyo began a pivotal study on ifinatamab deruxtecan in esophageal cancer. Here's a recap of the week's most important stories. Novo Nordisk announced that its CEO, Lars Fruergaard Jørgensen, will step down from his position. The decision can be attributed to increasing competitive pressure and recent market challenges that have led to a decline in the company's stock price since mid-2024. Also, the Novo Nordisk Foundation board asked for a CEO succession and an increased presence on the NVO board. Novo Nordisk Foundation controls the majority of votes at the Novo Nordisk annual general meeting. Accordingly, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join NVO's board as an observer for some time. Jørgensen's decision comes after a mutual agreement with the board, although he will remain in his role temporarily to ensure a smooth transition. Jørgensen has been CEO since 2017 and played a pivotal role in the company's expansion, particularly in the obesity treatment market, which has been a significant growth driver for Novo Nordisk in recent years. Novo Nordisk said a search for Lars Fruergaard Jørgensen's successor has begun. Sanofi announced an agreement to acquire Vigil Neuroscience, which is making innovative TREM2-based therapeutics for neurodegenerative diseases, for a total equity value of around $470 million ($8 per share in cash). The acquisition will add Vigil's investigational oral small-molecule TREM2 agonist, VG-3927, which will be developed in a phase II study for treating Alzheimer's disease. However, Sanofi is not acquiring VGL101, Vigil's second molecule program, which is being developed for another neurodegenerative disease. Pfizer announced an exclusive deal to acquire global (ex-China) rights to SSGJ-707, a bispecific PD-1/VEGF antibody developed by Chinese biotech 3SBio, for an upfront payment of $1.25 billion. The deal includes up to $4.8 billion in milestone payments, tiered double-digit royalties, and a $100 million equity investment in 3SBio. SSGJ-707 is being developed for cancers such as non-small cell lung cancer and metastatic colorectal cancer, with a phase III trial expected this year. Unlike existing PD-1 therapies, SSGJ-707 targets both PD-1 and VEGF, potentially offering a stronger anti-tumor response. The deal is set to be closed in the third quarter. The FDA approved Roche's eye drug, Susvimo, for treating diabetic retinopathy (DR). Susvimo is already approved for treating neovascular or 'wet' age-related macular degeneration and diabetic macular edema. The approval was based on one-year data from the phase III Pavilion study. Susvimo provides continuous delivery of a customized formulation of ranibizumab via the Port Delivery Platform (a refillable eye implant), offering an alternative treatment option to regular VEGF eye injections for patients at risk of vision loss from progression of diabetic retinopathy. Merck and partner Daiichi Sankyo announced the dosing of the first patient in the pivotal IDeate-Esophageal01 phase III study evaluating the efficacy and safety of ifinatamab deruxtecan (I-DXd) in certain patients with pretreated advanced or metastatic esophageal squamous cell carcinoma versus the physician's choice of chemotherapy. The study's primary endpoint is overall survival. Ifinatamab deruxtecan is also being evaluated in a phase III study in relapsed small cell lung cancer (SCLC). Ifinatamab deruxtecan is a part of Merck's collaboration with Daiichi Sankyo to co-develop and co-commercialize the latter's three DXd antibody drug conjugates or ADCs worldwide, except Japan. The other two ADCs are patritumab deruxtecan/MK-1022 and raludotatug deruxtecan/MK-5909. In August last year, Merck expanded the collaboration to co-develop and co-commercialize MK-6070, an investigational T-cell engager targeting delta-like ligand 3 (DLL3), which it obtained from its acquisition of Harpoon Therapeutics. Pfizer has a Zacks Rank #2 (Buy), while Novo Nordisk, Pfizer, Sanofi and Merck carry a Zacks Rank of 3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The NYSE ARCA Pharmaceutical Index has declined 3.8% in the past five trading sessions. Large Cap Pharmaceuticals Industry 5YR % Return Here's how the eight major stocks performed in the previous five trading sessions. Image Source: Zacks Investment Research In the last five trading sessions, Merck rose the most (4.1%) while Lilly declined the most (2.3%). In the past six months, Novartis rose the most (11.2%), while Novo Nordisk declined the most (34.0%). (See the last pharma stock roundup here: BAYRY Q1 Earnings, NVO & GSK's New Deals) Watch this space for regular pipeline and regulatory updates next week. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Health
- Yahoo
Novo Nordisk Foundation pledges $57 million to WHO amid US funding gap
(Reuters) -The Novo Nordisk Foundation has pledged up to DKK 380 million ($57.76 million) to the World Health Organization (WHO) to expand its tie-up with the United Nations agency for another four years, the philanthropic body said on Wednesday. WHO said on Tuesday it had secured over $170 million in new commitments from multiple countries and organizations, but did not disclose the amount contributed by the foundation, which owns a controlling stake in drugmaker Novo Nordisk. WHY IT'S IMPORTANT The pledge comes at a time when the WHO faces a major funding shortfall with the planned withdrawal of the United States, its largest donor. The Novo Nordisk Foundation said it is expanding its collaboration to focus on non-communicable diseases, antimicrobial resistance and health system resilience. Novo Holdings, the foundation's investment arm, is one of the world's biggest philanthropic donors. CONTEXT The U.S. is set to exit the agency in 2026 following President Donald Trump's decision, announced on his first day in office. In response, WHO has cut its 2026–2027 budget by 20% to $4.2 billion and will raise mandatory member contributions by 20%, with China becoming the top state donor. KEY QUOTES "WHO plays a unique role in the global health ecosystem, providing normative guidance, monitoring diseases, building country capacity for resilient health systems and supporting learning and evidence," said Mads Krogsgaard Thomsen, CEO of the foundation. ($1 = 6.5761 Danish crowns)
Reuters
21-05-2025
- Health
- Reuters
Novo Nordisk Foundation pledges $57 million to WHO amid US funding gap
May 21 (Reuters) - The Novo Nordisk Foundation has pledged up to DKK 380 million ($57.76 million) to the World Health Organization (WHO) to expand its tie-up with the United Nations agency for another four years, the philanthropic body said on Wednesday. WHO said on Tuesday it had secured over $170 million in new commitments from multiple countries and organizations, but did not disclose the amount contributed by the foundation, which owns a controlling stake in drugmaker Novo Nordisk ( opens new tab. The pledge comes at a time when the WHO faces a major funding shortfall with the planned withdrawal of the United States, its largest donor. The Novo Nordisk Foundation said it is expanding its collaboration to focus on non-communicable diseases, antimicrobial resistance and health system resilience. Novo Holdings, the foundation's investment arm, is one of the world's biggest philanthropic donors. The U.S. is set to exit the agency in 2026 following President Donald Trump's decision, announced on his first day in office. In response, WHO has cut its 2026–2027 budget by 20% to $4.2 billion and will raise mandatory member contributions by 20%, with China becoming the top state donor. "WHO plays a unique role in the global health ecosystem, providing normative guidance, monitoring diseases, building country capacity for resilient health systems and supporting learning and evidence," said Mads Krogsgaard Thomsen, CEO of the foundation. ($1 = 6.5761 Danish crowns)
