Activist hedge fund Parvus Asset Management is building a stake in Novo Nordisk, according to a report from the Financial Times, as the Danish pharmaceutical giant faces increasing investor scrutiny over its positioning in the rapidly evolving weight-loss drug market.

The London-based hedge fund, known for taking activist positions in European corporates such as Ryanair, UniCredit, and Flutter Entertainment, is reportedly aiming to influence the appointment of Novo Nordisk’s next CEO. The firm has not publicly disclosed the size of its stake, though Danish securities law requires mandatory disclosure once a shareholder crosses the 5% threshold.

Novo Nordisk recently announced that current CEO Lars Fruergaard Jørgensen will step down, following a sharp decline in its share price since mid-2024. Once a market leader in weight-loss therapeutics with its blockbuster Wegovy drug, the company has faced mounting pressure from competitors – particularly Eli Lilly – whose pipeline and market execution have impressed investors more in recent quarters.

Parvus’s involvement comes at a pivotal moment for Novo. The company has indicated that US sales of Wegovy may recover following a crackdown on compounded copycat versions of the drug, but its revised 2025 forecasts have left analysts cautious.

Neither Parvus nor Novo Nordisk responded to requests for comment. Novo stated via email to Reuters that it had “nothing to add” regarding the Parvus report.

If confirmed, the move would mark another high-profile campaign by Parvus, which previously approved UniCredit CEO Andrea Orcel’s pay package and exited its stake in Ryanair in April. The hedge fund currently holds a 4.3% position in Flutter Entertainment, according to LSEG data.