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Investing.com -- Parvus Asset Management, a London-based activist hedge fund, is acquiring a stake in Danish pharmaceutical company Novo Nordisk (NYSE:NVO), according to The Financial Times. The move comes as Novo Nordisk, the manufacturer of the drug Ozempic, seeks a new chief executive in the wake of a significant drop in share prices.
Parvus Asset Management, known for its previous involvements with Ryanair and Flutter Entertainment, aims to influence the selection of Novo Nordisk’s new CEO, FT reported, citing sources familiar with the matter.
Over the past year, Novo Nordisk’s shares have plummeted by 50%. This fall is attributed to a combination of underwhelming trial results for its new obesity drug and sales figures that did not meet expectations. These factors led investors to believe that Novo Nordisk was losing competitive ground to its American rival, Eli Lilly (NYSE:LLY), in the weight-loss market.
In the previous 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 the stake Parvus has acquired in Novo Nordisk remains undisclosed. According to Danish securities regulations, Parvus is not required to reveal this information if its ownership constitutes less than 5% of the company.
Following the news, Novo stock has risen 1.1%, signaling investor confidence in a potential strategic refocusing.
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