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.
0803 GMT - Bayer should benefit from reduced legal uncertainty about its Roundup weedkiller after the U.S. Supreme Court ruled in its favor, Jefferies analysts say in a research note. The Supreme Court sided with Bayer in a case over claims the company had failed to warn about alleged risk, which should materially reduce the potential flow of future cases and associated liability, according to Jefferies. "While this ruling overturns adverse lower-court decisions and resolves a long-running legal split, we see it as having limited impact on the existing settlement envelope, which is already largely defined," the analysts say. Shares in Bayer are little moved, after closing 19% higher on Thursday. (adria.calatayud@wsj.com)
0610 GMT - Germany's Merck KGaA is heralding a new growth phase in the lab-tools market through its acquisition of Bio-Techne, West Monroe's Alex Torgerson says. "Merck's acquisition of Bio-Techne signals that strategic buyers are looking past the recent slowdown in biotech funding and positioning for the next growth cycle," Torgerson says. "The deal also suggests strategic buyers are willing to pay for high-quality platforms ahead of an expected recovery in [research-and-development] spending." Scale and differentiated capabilities in segments like life-science tools, cell and gene therapy, and precision medicine are becoming increasingly important, he adds. (adria.calatayud@wsj.com)
2302 GMT - All eyes are now on the U.S. Food and Drug Administration as it weighs clearance of Echo IQ's EchoSolv heart-failure product, says Petra Capital. Clearance will trigger another A$10 million payment as part of Echo IQ's heads of agreement with Pro Medicus, which establishes a U.S. commercial partnership. Analyst Tanushree Jain says FDA clearance is highly likely and key to unlocking the U.S. commercial opportunity. She says that, timing wise, it has parallels to Pro Medicus's investment in ASX-listed 4DMedical. This investment was made just before FDA clearance of 4DMedical's CTVQ product and led to 4DMedical's share price rising strongly, which continued after FDA clearance. Petra Capital lifts its price target on Echo IQ by 19%, to A$1.30/share, and retains a "hold" call. Echo IQ ended Thursday at A$1.615. (david.winning@wsj.com; @dwinningWSJ)
2230 GMT - Ord Minnett is delighted with Echo IQ's heads of agreement with Pro Medicus to establish the framework for a strategic investment and U.S. commercial partnership. Pro Medicus will invest an initial A$10 million. This will be followed by another A$10 million if Echo IQ's EchoSolv product gets approval by the Food and Drug Administration. "We view the key benefits of the deal as three-fold," says analyst Tom Godfrey. It is a material endorsement and a validation datapoint from a global imaging tech leader in Pro Medicus. It also gives a timely boost to Echo IQ's cash position and leads to a step-change in its immediate U.S. commercialization opportunity. Ord Minnett raises its price target on Echo IQ by 20%, to A$1.80/share. Echo IQ ended Thursday at A$1.615. (david.winning@wsj.com; @dwinningWSJ)
1622 GMT - Merck KGaA's deal to buy Bio-Techne makes sense from a strategic rationale perspective, with the German company upgrading its life-science portfolio, Bernstein says in a research note. Bernstein says the valuation on the U.S. life-sciences tools supplier looks expensive but notes that the market appears to like the deal, with Merck's shares gaining after the news. The price tag also raises the question of whether the sector sees life sciences tools as a winner in the AI space, according to Bernstein. "We expect this deal to go through with no hitches," Bernstein says. Merck shares closed 4.9% higher at 147 euros. (sarah.sloat@wsj.com)
1437 GMT - GSK is poised to deliver growth in core earnings per share every year over the coming decade, as the loss of a key HIV patent should have less of an impact than many fear, Bernstein analysts say in a research note. The U.K. drugmaker is developing three new HIV products that should improve its sales prospects in the first half of the 2030s, according to Bernstein. The new products and the difficulty of manufacturing cabotegravir, the active ingredient in HIV drugs that is due to lose U.S. patents in 2029 and 2030, means the sales erosion from the patent should be less pronounced than expected, the analysts ay. Bernstein says it raises its core EPS forecast for GSK over the 2026-35 period by up to 25% and now projects growth every year. Shares rise 1.7%. (adria.calatayud@wsj.com)
1217 GMT - Fresenius Medical Care investors might be disappointed by a smaller-than-expected increase in 2027 payment rates proposed by the U.S. Centers for Medicare & Medicaid Services, UBS analysts say in a research note. The CMS on Wednesday said it proposed to increase payments to facilities where Medicare beneficiaries with end-stage renal disease get dialysis services by 1.1% next year. The proposed raise for the base rate is roughly half of what investors likely anticipated and well below prior years, according to UBS. Shares in Fresenius Medical Care fall 2.8%. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
June 26, 2026 04:20 ET (08:20 GMT)
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