In a significant governance shift, several members of Novo Nordisk’s board of directors will step down following disagreements with the company’s controlling shareholder, the Novo Nordisk Foundation, over the future composition of the board.

The Danish pharmaceutical giant, renowned globally for its revolutionary diabetes and weight-loss medications, announced on Tuesday that discussions between the board and the Foundation had failed to produce a consensus on how the board should be structured moving forward.

Helge Lund, Chair of Novo Nordisk’s board of directors, stated, “The Board proposed a renewal focusing on the addition of select, new competencies while also maintaining continuity, whereas the Board of the Foundation wanted a more extensive reconfiguration.”

As a result of the disagreement, Lund, along with Vice Chair Henrik Poulsen and independent members Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Christina Law, and Martin Mackay, will not stand for re-election at the company’s upcoming Extraordinary General Meeting (EGM).

Shares of Novo Nordisk, listed on the Copenhagen Stock Exchange, fell by 1.2% as of 1:41 p.m. London time (8:41 a.m. ET) following the announcement, reflecting investor concern over the governance uncertainty.

The leadership transition comes at a critical time for Novo Nordisk, whose weight-loss and diabetes treatments — particularly Ozempic and Wegovy — have propelled it to become one of Europe’s most valuable companies. The upcoming EGM will be closely watched by investors and analysts, as the firm seeks to balance continuity with strategic renewal amid growing global competition in the pharmaceutical industry.