Control Battle Erupts at Israeli Healthcare Firm Novolog Over Major Investment Offer

A fierce control dispute has erupted at Israeli healthcare services company Novolog following a report of a 100 million shekel investment proposal by the Movment Group, which would acquire 21.34% of Novolog's shares and become its largest shareholder. This move would dilute the controlling Pozis family’s stake from 26.7%, prompting the family to accuse the company’s board of directors of conspiring to maintain their power and undermine shareholder rights. The Pozis family sent a warning letter to Novolog and its board, calling the investment offer a "poison pill" tactic designed to block their attempt to replace most board members.

Novolog announced Movment’s unconditional offer on the evening of July 26, setting a short deadline of August 5 for acceptance. Shortly after, the Pozis family demanded a shareholders’ meeting to vote on replacing the board, excluding two external directors and family member Oded Pozis. The family claims the company’s reporting reversed the timeline to mislead the public and obscure the defensive nature of their board replacement demand. Market insiders suggest Movment’s offer was influenced by the Pozis family’s actions.

The Pozis family argues the board’s acceptance of Movment’s offer without due diligence is suspicious and primarily aimed at preserving the current directors’ control rather than addressing Novolog’s capital needs. They describe the company’s recent management as deeply flawed, citing a series of operational and financial setbacks, including a drop in market value from a peak of 1.83 billion shekels in 2022 to 404 million shekels recently. Novolog has faced challenges such as losing a major client (Pfizer), distribution system failures, and regulatory fines.

Novolog, founded by the Pozis family in the 1960s and managed by CEO Aviad Busi since 2020, specializes in medical logistics, clinical trial services, sterilization, and digital health. The company expanded aggressively under former CEO Eiran Taus but has struggled in recent years. Institutional investors view Movment’s entry as a potential catalyst for recovery.

The Pozis family also accuses the board of obstructing shareholder oversight by blocking information requests from Oded Pozis. Oded Pozis told reporters they will legally challenge the board and may increase their stake to regain control and restore Novolog’s success. Novolog’s board responded that it acts professionally and will review the warning letter according to legal procedures. Movment’s controlling shareholder Eli Dahan expressed confidence that the board will recognize the investment’s value and its potential to stabilize and grow the company. The Novolog board is expected to meet early next week. Meanwhile, independent director Anat Gabriel resigned on July 28 following the dispute.