Novo Nordisk Shares Surge 3% Amid Activist Investor Stake-Building

Novo Nordisk shares rose 3% after activist investor Parvus Asset Management emerged with a stake in the company. Parvus is seeking influence over the appointment of Novo's next CEO, amid investor unease over the company's position in the competitive weight-loss drug market. The London-based hedge fund has not disclosed the size of its stake, but Novo expects US sales of its Wegovy drug to recover once a ban on compound copycat versions is enforced.

Novo Nordisk (NYSE:NVO) shares surged 3% following reports that activist investor Parvus Asset Management has acquired a stake in the company. The London-based hedge fund, known for its previous engagements with Ryanair and Flutter Entertainment, aims to influence the selection of Novo Nordisk's next CEO, according to The Financial Times [1].

The move comes as Novo Nordisk seeks to appoint a new leader after a significant drop in share prices. Over the past year, Novo Nordisk's shares have plummeted by 50%, largely due to underwhelming trial results for its new obesity drug and sales figures that failed to meet expectations. These factors have led investors to believe that Novo Nordisk is losing competitive ground to its American rival, Eli Lilly (NYSE:LLY) [2].

Last month, Novo Nordisk announced that its current CEO, Lars Fruergaard Jørgensen, would be stepping down ahead of schedule. However, Jørgensen will continue in his role until a replacement is appointed. The exact size of Parvus's stake in Novo Nordisk remains undisclosed, but it is not required to reveal this information if its ownership constitutes less than 5% of the company under Danish securities regulations [1].

Following the news, Novo stock has risen 1.1%, signaling investor confidence in a potential strategic refocusing. Parvus did not disclose the size of its stake in Novo Nordisk, and it is not required to do so if it owns less than 5% of the company [2].

The Novo Nordisk Foundation, the drugmaker's largest shareholder, holds the majority of voting rights in the company, making it harder for an activist to influence its plans. The foundation's chair, Lars Rebien Sørensen, who previously ran the drugmaker, has joined the board as an observer as part of the process of finding a successor [2].

Novo Nordisk expects US sales of its Wegovy drug to recover once a ban on compound copycat versions is enforced. The stock climbed as much as 2.5% in early Copenhagen trading following the report from The Financial Times [3].

References:

[1] https://www.investing.com/news/stock-market-news/parvus-asset-management-acquires-stake-in-novo-nordisk-amid-leadership-changes--ft-93CH-4087454
[2] https://www.irishtimes.com/business/2025/06/09/activist-hedge-fund-builds-stake-in-ozempic-maker-novo-nordisk/
[3] https://www.bloomberg.com/news/articles/2025-06-10/novo-climbs-after-ft-reports-activist-parvus-amassed-stake