Pazis Family Secures Control of Israeli Pharma Distributor Novolog After Boardroom Battle
Novolog, an Israeli pharmaceutical distribution and healthcare services company founded in 1966 by Eliezer Pazis, recently underwent a significant control struggle that ended with the Pazis family reinforcing its dominance. The conflict unfolded in early 2026 when Oudi Pazis, who held 27% of Novolog shares, expressed interest in selling control, causing a sharp decline in the company's stock. After the sale attempt failed, control passed to his son, Oded Pazis, who was appointed to the board in May 2026.
Tensions between Oded Pazis and the existing board, led by former Tnuva CEO Eric Shore, escalated quickly, culminating in a short but intense power struggle. Oded accused the board of severe mismanagement, while board members claimed he was aggressive and that information was withheld from him. Amid this turmoil, board member Anat Gabriel resigned. Investor Eli Dahan, a longtime associate of Novolog, proposed a 100 million shekel investment for a 21% stake, potentially diluting the Pazis family's holdings. In response, the Pazis family purchased shares from Phoenix and Arkin groups for 91 million shekels, increasing their stake to 44% and securing control.
Following this, the existing board resigned en masse, and Oded Pazis appointed a new board including executives from Gadot Group, Apple product distributor iCon, and Strauss Water. Novolog, which went public in 2017 with a market value of 550 million shekels, now trades at under 400 million shekels, reflecting a loss of more than half its IPO value. The company has faced operational challenges, including a failed ERP system upgrade that led to losing major clients like Pfizer and a 90% drop in net profits compared to 2024.
Novolog's core logistics division, accounting for 86% of revenue, has low profitability and saw a 14% revenue decline last year. Other segments like healthcare services and digital health have grown but remain small. The company is focused on restructuring to improve efficiency and regain client trust. The Pazis family remains optimistic about turning the company around, emphasizing plans to strengthen logistics and operational excellence.
Oudi Pazis has a history of reviving family businesses, including the tampon manufacturer Rozetem, which he sold in 2010 for $65 million after a major turnaround. Novolog's recent struggles reflect the challenges of expanding through acquisitions and diversifying beyond its logistics base. The company and the Pazis family have declined to comment extensively but confirmed their commitment to enhancing Novolog's performance and shareholder value.
