KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Novo Nordisk, the maker of obesity drug Wegovy, announced plans to cut 9,000 jobs globally as part of a major restructuring aimed at boosting efficiency and fending off fierce competition from Eli Lilly and compounded drugmakers.
Key Developments
Restructuring plan: The overhaul is expected to generate annual savings of DKK 8 billion (US$1.25 billion). Novo also flagged DKK 9 billion in one-off restructuring costs.
Headcount reversal: The layoffs will reduce staff to early 2024 levels, following a hiring surge that nearly doubled its workforce over the past five years.
Profit warning: This marks Novo’s third profit downgrade in 2025, with guidance for operating profit growth cut to 4%-10%, from a previous 19%-27%.
Market and Competitive Context
Eroding momentum: Wegovy and diabetes drug Ozempic have seen slowing US sales, while Lilly’s Zepboundovertook Wegovy in prescriptions earlier this year.
Product pipeline: Novo is preparing a pill version of Wegovy and exploring additional uses of its GLP-1 drug portfolio to reignite demand.
Investor reaction: Shares initially fell but later rebounded 3.3%, though they remain 46% lower YTD, valuing Novo at US$181 billion versus a peak of ~US$650 billion in 2024.
Management Commentary
CEO strategy: New CEO Mike Doustdar said the job cuts will “simplify operations, accelerate decision-making and redirect resources toward growth areas.”
Analyst views:
Nordea’s Michael Novod called the move the CEO’s “first major step” to reposition Novo for long-term growth.
Sydbank’s Soren Lontoft Hansen said the scale of layoffs was “surprising” but reflects Novo’s shift to a slower-growth environment.
ATG Healthcare’s Lukas Leu warned investors remain cautious, noting Novo “expanded organisational complexity too quickly” and underestimated the consumer-driven nature of the obesity market.
Outlook
Novo expects to save DKK 1 billion in Q4 2025 from the restructuring and plans to reinvest in R&D, manufacturing capacity and global access initiatives. However, analysts caution the company faces a tougher competitive and consumer landscape, with market share under pressure and profitability expectations reset.
📌 Takeaway: Novo Nordisk’s sweeping job cuts highlight its pivot from years of breakneck expansion to cost discipline. While efficiency gains and pipeline investments may support long-term competitiveness, near-term risks around growth and market share remain significant.
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