Shares of Novo Nordisk NVO gained 5% on June 10, following a report that activist hedge fund Parvus Asset Management is building a stake in the company.

Per the Financial Times, this London-based hedge fund, Parvus Asset Management, is raising its stake in NVO to influence the appointment of the company’s new chief executive officer (CEO).

Last month, shares of the company dipped after it announced that CEO Lars Fruergaard Jørgensen would step down from his position following a mutual agreement with the company's board.

Parvus Asset Management did not reveal its exact stake in NVO and is not required to do so if it owns less than 5% of the company, as per Danish securities rules.

While Jørgensen’s tenure was quite successful with NVO becoming one of the top players in the obesity market, recent market challenges and a decline in the company’s share price since mid-2024 prompted the Novo Nordisk Foundation Board to initiate discussions around a change in leadership. Consequently, Novo Nordisk’s board and Jørgensen mutually agreed that a leadership transition would be in the best interest of the company and its shareholders.

Year to date, Novo Nordisk’s shares have lost 6.7% against the industry’s growth of 3.1%.

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NVO to Post New Semaglutide and CagriSema Results

Novo Nordisk’s semaglutide, a GLP-1 agonist, medicines gained significant traction, capturing a dominant share of the market. Among the most notable products are Ozempic injection and Rybelsus oral pill for type 2 diabetes (T2D), and Wegovy, an injection for weight management. Ozempic is also indicated for treating chronic kidney disease and Wegovy received FDA approval last year to reduce the risk of heart disease.

NVO announced that it will present data from the STEP UP trial on a higher dose of Wegovy (semaglutide 7.2 mg) for those in need of greater weight loss. The data will be presented at the upcoming American Diabetes Association (ADA) 85th Scientific Sessions in Chicago, set to be held during June 20-23, 2025.

Management stated that the data will reinforce semaglutide’s efficacy in both a clinical and real-world setting, including cardiometabolic and kidney health benefits for those with obesity and diabetes.

Novo Nordisk will also present full results from the phase III REDEFINE 1 and 2 studies on CagriSema.

CagriSema, a fixed-dose combination of a long-acting amylin analogue and Wegovy, is the most advanced candidate in Novo Nordisk’s obesity pipeline. Management stated that the REDEFINE 1 and 2 studies will provide insights into the transformational potential of CagriSema.