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.
0909 GMT - ConvaTec investors are likely to be reassured by the company's reiterated guidance and its increased medium-term growth expectations, RBC Capital Markets analysts say in a note. The medical device company upgraded its medium-term organic revenue growth target to 6% to 8%, from 5% to 7%, and expects adjusted EBIT margins in the mid-20s by 2027. "The consensus currently sits at the bottom end of the revenue guidance range and 24.0% EBIT margin in 2027 estimates, implying potential mid single-digit upside to consensus by 2028," the analysts say. Shares are up 8.4% at 246 pence, and are up 1.15% in the year-to-date.(anthony.orunagoriainoff@dowjones.com)
0825 GMT - The size of CSPC Pharmaceutical's deal struck with AstraZeneca last month beat CGS International's expectations and implies the Chinese company's drug pipeline is undervalued, analyst Vicky Zhu says. She notes that the pharmaceutical company has around 90 innovative drugs in its pipeline at various clinical stages. CSPC's revenue is expected to recover from 2026, as the drag from volume-based procurement price cuts is likely to have been digested in 2025, Zhu adds in a note. CGSI raises its target price to HK$11.63 from HK$11.12 and retains an add rating on CSPC Pharma, which ends 5.2% lower at HK$10.06. (megan.cheah@wsj.com)
0758 GMT - Fresenius Medical Care's guidance for 2026 is likely to disappoint as it implies the company is facing additional headwinds that will offset extra cost savings, analysts at Jefferies say. The German dialysis specialist forecast broadly flat revenue in 2026, and adjusted operating profit ranging from a mid-single-percentage digit rise to a fall of the same proportion. In light of expected savings of 250 million euros from an efficiency program, this points to intensifying headwinds elsewhere, Jefferies says in a research note. Moreover, Fresenius Medical Care reiterated its 2030 profitability guidance despite raising its 2027 savings target, the analysts say. (adria.calatayud@wsj.com)
0728 GMT - Novo Nordisk's miss of a key goal in a late-stage comparison clinical trial of obesity drug CagriSema with Eli Lilly's Zepbound is a blow to the Danish drugmaker's long-term outlook, Citi analysts say. CagriSema is Novo Nordisk's next-generation product intended to fill the gap left by the patent expiration of semaglutide, the key ingredient behind blockbuster obesity and diabetes drugs Wegovy and Ozempic, according to Citi. The drug failed to show noninferior weight loss compared to market leader Zepbound and this, together with higher manufacturing complexity, makes it less likely to compete effectively, the analysts say. Citi cuts its target price on Novo Nordisk to 309 Danish kroner from 340 kroner. Shares closed 16% lower at 251.40 kroner on Monday. (adria.calatayud@wsj.com)
0318 GMT - Raffles Medical Group is likely entering a stronger growth phase in 2026-2027, RHB Research's Shekhar Jaiswal says in a report. The recovery in its Singapore-based hospitals may extend on specialist-led volumes and supportive insurer-panel flow, while the losses at its China-based clinics could continue to narrow, the analyst says. The Singapore-listed healthcare provider's margins should also remain resilient on measured price increases and tech-driven productivity gains, offsetting wage inflation. RHB Research raises the stock's target price to S$1.30 from S$1.15 to reflect a valuation rollover, with its buy rating unchanged. Shares are 0.9% higher at S$1.08. (ronnie.harui@wsj.com)
1837 GMT - Novo Nordisk's readout that its CagriSema obesity treatment failed to outperform Eli Lilly's Zepbound aligns with one of Morgan Stanley's bull cases for the latter company. CagriSema achieved 23% weight loss compared with 25.5% for Zepbound. The result "lowers the competitive relevance of CagriSema as a next‑gen injectable in both obesity and diabetes and strengthens LLY's future position in the market," the analysts write. Lilly, which also got FDA approval for a multi-dose pen version of Zepbound, is up 4%. (elias.schisgall@wsj.com)
1503 GMT - Gilead Sciences, which is paying $115 a share for the roughly 88.5% of Arcellx it doesn't already own, says it approached its target less than two weeks ago with a 17% lower bid. Gilead says it submitted a non-binding proposal on Feb. 13 to buy the rest of Arcellx for $98 a share. The companies then spent just over a week negotiating a deal, culminating in the $115 initial buyout price, plus a $5-a-share contingent value right. Arcellx up 78% to $113.90. (colin.kellaher@wsj.com)
1436 GMT - The strong potential of Arcellx's anito-cel drug candidate for multiple myeloma should allow the biotech's investors to collect the full value of Gilead's takeover. Gilead is paying an initial $115 a share for Arcellx, plus contingent value rights worth another $5 a share if anito-cel global net sales reach at least $6 billion by the end of 2029. William Blair analyst Sami Corwin says the contingent value right will likely pay out, as she expects anito-cel to achieve $7.8 billion in cumulative global sales the end of 2029. Arcellx surges 78% to $113.89. (colin.kellaher@wsj.com)
1157 GMT - Eli Lilly shares jump 3.3% premarket after Danish rival Novo Nordisk said its experimental obesity treatment failed to outperform an Eli Lilly peer. Novo Nordisk is pushing to compete with Eli Lilly in the lucrative weight loss market, but a trial of its next-generation medication showed its efficacy fell short of the Indianapolis-based group's tirzepatide drug, which is marketed as Mounjaro and Zepbound. Novo Nordisk said its drug missed the trial's primary goal of showing a noninferior weight loss compared to tirzepatide. Novo Nordisk shares tumble 15%. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
February 24, 2026 04:20 ET (09:20 GMT)
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