Control Battle Erupts at Israeli Healthcare Firm Novolog Amid Share Decline and Investment Offer

A control struggle is unfolding at Israeli healthcare services company Novolog between major shareholder Ehud Pozis, who owns 27%, and Eli Dahan, owner of Movement Group. Dahan, who previously sold two companies to Novolog for 82 million shekels, has now proposed investing 100 million shekels for a 21% stake in Novolog. The company’s shares have plummeted 77% from their 2022 peak.

Novolog, founded in 1966 by Eliezer Pozis and later led by his son Ehud (Oudi), operates in logistics, home care, and digital health. It grew rapidly during the COVID-19 pandemic and went public in 2017 with private equity partner FIMI. At its peak, Novolog was valued at 1.8 billion shekels but has since dropped to about 415 million shekels due to investment write-downs.

Ehud Pozis, 73, had planned to sell his stake and retired as chairman at the end of 2024, handing control to his son Oded, who joined the board in May. This transition caused tensions, with Oded accusing the board of withholding information. The current chairman, Eric Shor, was appointed with Ehud’s involvement. Oded Pozis described the company’s management as severely failing and negligent in a letter to the board.

Dahan’s investment offer, made without due diligence and valid until August 6, comes amid this discord. Pozis senior called a shareholders meeting to replace the board, potentially blocking Dahan’s investment if major institutional investors support him. If the board remains, it can approve the deal without a shareholder vote. Dahan’s Movement Group specializes in fitness and health, bringing sector experience and a strategic plan.

Novolog has cash reserves of 163 million shekels and has paid dividends recently, leading Pozis’s camp to argue the company does not need outside capital. The company suffered a 39 million shekel loss in 2023 due to write-downs and operational disruptions from a failed ERP system replacement, which caused client losses. In 2025, revenues fell 10% to 1.8 billion shekels and profits dropped over 50% to 24 million shekels. The outcome of the control battle will shape Novolog’s future direction amid financial and operational challenges.