Lundeck A/S and Novo Nordisk both announced changes in their executive management team.

Lundbeck A/S reports that President and CEO Ulf Wiinberg has resigned, effectively immediately due to a failure by Wiinberg to request and obtain prior approval from Lundbeck’s board of directors to receive shares in the biotech company, Stratified Medical Ltd., from the company’s founder in 2013. Lundeck said that action represented a breach of Lundbeck’s Code of Conduct, which sets the rules for the conduct of management and employees. “It is an aggravating circumstance,” Lundbeck said in a statement because the shares in question were in a company in which Lundbeck later invested around DKK 19 million ($3.2 million).

“The board acknowledges Ulf Wiinberg’s considerable contributions since his appointment in 2008. Ulf Wiinberg has not only acknowledged but also apologized for his erroneous actions, but this does not change the fact that Lundbeck has a clear and unmistakable Code of Conduct for all employees. We cannot operate with degrees of compliance with our Code of Conduct and the board of directors therefore concurs with Ulf Wiinberg’s decision to resign,” said HÃ¥kan Björklund, Lundeck’s chairman, in the company statement.

“I am sincerely sorry for the course of events, which on my part was unintentional, and of which I myself informed HÃ¥kan Björklund. I am extremely happy about my time at Lundbeck and I am proud of having taken part in the development and strengthening of the company. However, based on these events, I have found it in both parties’ best interests that I resign from my position today,” said  Mr. Wiinberg, in a company statement.

A search for Mr. Wiinberg’s replacement has been initiated. Until this process has been completed, Mr. Björklun will continue to be chairman with extended operational responsibilities and in this role, act as day-to-day leader of the company. He has more than 30 years of experience from the pharmaceutical industry, most notably from his time as president and CEO of Nycomed from 1999 to 2011. He has been on Lundbeck’s board of directors since 2011.

In other news, Novo Nordisk also has announced a change in its executive management team.Following a change in the distribution of responsibilities among the members of its executive management, Novo Nordisk has reduced the number of executives from seven to six. As a result, Executive Vice President and Chief of Staffs Lise Kingo has decided to leave Novo Nordisk.

Her areas of responsibility will be taken over by other members of executive management. As a result, Corporate People & Organization and Business Assurance report to Lars Fruergaard Jørgensen, executive vice president; Corporate Stakeholder Engagement reports to Jakob Riis, executive vice president; and Corporate Communications reports to Lars Rebien Sørensen, chief executive officer (CEO).

Following these changes, Novo Nordisk’s executive management is now composed as follows: Lars Rebien Sørensen, CEO; KÃ¥re Schultz, president and chief operating officer, responsible for sales and product supply; Jesper Brandgaard, executive vice president and chief financial officer, responsible for finance, legal, and investor relations. Lars Fruergaard Jørgensen, executive vice president, responsible for corporate IT, corporate quality, corporate development, corporate people & organization and business assurance; Jakob Riis, executive vice president, responsible for marketing, medical affairs, and corporate stakeholder engagement; Mads Krogsgaard Thomsen, executive vice president and chief science officer, responsible for research, development and regulatory affairs.

Source: Novo Nordisk and Lundbeck