Novolog Control Battle Intensifies as Owner Seeks Board Dissolution Amid Movement's Buyout Offer

Novolog's stock surged amid a control struggle between its current majority owner, Ehud Pozis, and Movement Group, led by Eli Dahan, which aims to become the largest shareholder. Movement submitted a binding offer to Novolog's board to invest 100 million shekels in exchange for shares representing 21.34% ownership. The offer is unconditional, with a deadline for acceptance or rejection set for August 5, 2026. The decision lies with Novolog's board, chaired by Erik Shore.

Pozis, who currently holds 26.7% and whose family founded Novolog, opposes the offer as it would dilute his stake to 21%, below Movement's proposed share, causing him to lose control. Shortly after Movement's proposal, Pozis requested the board convene a shareholders meeting to replace all current directors except two external members and himself with three new directors he would nominate. This move would delay or block the board from considering Movement's offer on time, effectively thwarting it.

Novolog has faced significant challenges over the past two years, with its market value dropping 37% from its 2017 IPO valuation of 571 million shekels to 361 million shekels currently. Since peaking at 1.8 billion shekels in July 2022, it has lost nearly 1.5 billion shekels in value. The company has recorded multiple impairments and suffered tens of millions in losses last year due to a distribution management system failure and negative impacts from the conflict with Iran. Pfizer, a major client, ceased cooperation.

Novolog operates three divisions: logistics (its largest, handling pharmaceutical storage, distribution, clinical trial logistics, and sterilization), health services (providing home care, personalized medicine, and lab services), and a smaller digital health division. Besides Pozis, major shareholders include institutional investors Migdal (14%), Phoenix (12%), Harel (11%), Clal (6%), and businessman Mori Arkin with 9%.