The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1203 ET - Big European pharmaceutical stocks have rallied in recent weeks, which makes them vulnerable should companies' 2026 guidance disappoint, Bank of America analysts say in a note. The likely outlooks from AstraZeneca and Novartis look safe relative to consensus expectations, Bank of America says. Meanwhile, there could be some risk that the outlooks issued by GSK, Novo Nordisk and Sanofi fall short of forecasts, according to Bank of America. For Roche, Bank of America expects guidance of sales growth in the mid-single-digit percentage range excluding currency movements and earnings per share growth of high single digits, broadly in line with consensus, but sees room for a more cautious view. The Stoxx Europe 600 Health Care index closes 0.6% higher, and is up 7.25% over the past month. (adria.calatayud@wsj.com)
1132 ET - Sanofi might need deals to offset disappointing data for some of the drugs in its pipeline that stoked investors' concerns about its research-and-development productivity, UBS analysts say in a research note. "Meaningful [mergers & acquisitions] may be the only realistic solution, which brings significant uncertainty and risks, and also reduces the possibility of systematic buybacks to boost [earnings-per-share] growth," the analysts say. Disappointing data for multiple sclerosis drug candidate tolebrutinib and a hit from new U.S. pediatric vaccination schedules prompt UBS to cut its midterm estimates for the French drugmaker by about 8%. UBS also lowers its recommendation on the stock to neutral from buy, while trimming its target price to 88 euros from 105 euros. Shares fall 1.3% to 80.55 euros. (adria.calatayud@wsj.com)
0630 ET - Novo Nordisk's Wegovy weight-loss pill has launched, and Berenberg expects around $1 billion in sales this year. The Danish pharmaceutical company must maximize its head-start over competitor Eli Lilly and deliver a strong sales ramp up in 2026, Berenberg analysts Kerry Holford and Luisa Hector write. The bank's base case is Wegovy pill sales of $2 billion in 2027, but a blue-sky scenario could support sales of around $6 billion. Higher-than-anticipated Wegovy pill sales could offset the headwinds associated with U.S. price cuts and patent expiries in 2026, the bank adds. "We see upside to Wegovy pill consensus sales estimates." Berenberg raises its stock price target to 415 Danish kroner from 400 kroner and keeps its recommendation at buy. Shares rise 7% to 390.85 kroner. (dominic.chopping@wsj.com)
1810 ET - Retirement-village operator Ryman Healthcare's resales remain the key concern of Macquarie. Ryman reported 3Q resales of 274, down 4% on year but roughly flat compared to 2Q. Macquarie says that number included relocations so the on-year drop was larger at 10%. As a result, the annualized rate of resales is running 12% below terminations, with the result that Ryman's stock of properties continues to expand. "Ryman is yet to slow stock build, and hence it is unclear whether current pricing/margins are adequate to achieve this," says Macquarie, which sticks with a "neutral" call. Ryman is unchanged at NZ$2.97 today, meaning it is hovering just below what would be a new 11-month high. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 16, 2026 12:20 ET (17:20 GMT)
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