Novo Nordisk Stock Climbs on Report of Activist Investor Parvus Building Stake
Key Takeaways
- Novo Nordisk stock rose on Tuesday after the Financial Times reported that an activist investor is building a stake in the Danish drugmaker.
- Parvus Asset Management is reportedly looking to influence the hiring of Novo Nordisk's next CEO, the FT reported.
- The Ozempic and Wegovy maker has faced slowing sales growth and more effective rival weight loss drugs, and it announced last month that its CEO is leaving.
The U.S.-listed shares of Danish drugmaker Novo Nordisk (NVO) rose Tuesday following a report that an activist investor is building a stake in the Ozempic maker.
Citing sources familiar with the matter, the Financial Times reported on Monday that Parvus Asset Management has bought up shares in Novo Nordisk, and is looking to influence the hiring of the drugmaker's next CEO.
The fund has not disclosed the size of its stake because it is still under 5% of Novo Nordisk's total shares, the legal threshold requiring disclosure under Danish law, the Financial Times reported. The Novo Nordisk Foundation nonprofit owns the majority of voting rights in the weight loss giant, which the FT reported could make any activist pressure campaign difficult.
Novo Nordisk's U.S.-listed shares have lost nearly half their value in the last 12 months as sales growth for its landmark weight loss drugs Ozempic and Wegovy have started to slow. Studies have also shown that Eli Lilly's (LLY) rival drugs, Mounjaro and Zepbound, are more effective at weight loss along with promising data for its next-generation drugs.
Last month, Novo Nordisk cut its full-year sales and profit forecasts, and just over a week later announced that CEO Lars Fruergaard Jørgensen would step away from the company once it found a successor.
Novo Nordisk and Parvus did not immediately respond to Investopedia's requests for comment.
Novo Nordisk's American depositary shares were up more than 5% in Tuesday morning trading.
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