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.
0520 ET - Bayer scored a big win in the U.S. Supreme Court with a ruling in its favor in a case over its Roundup weedkiller, which means investors' focus can shift elsewhere, Bank of America says. A proposed U.S. class settlement for Roundup litigation, the launch of stroke-prevention drug asundexian and Bayer's efforts to reduce debt should be next on investors' watchlists, according to Bank of America. The Roundup settlement is now less relevant given that the Supreme Court ruling reduces the routes for future litigation, the analysts say. Beyond Roundup, the health of the German group's pharma business is key, they add. Asundexian, as well as recently launched drugs like Kerendia, Lynkuet and Beyonttra support expectations of sales growth at Bayer's pharma unit over the 2027-32 period, according to Bank of America. Shares rise 0.8%. (adria.calatayud@wsj.com)
0502 ET - Investors in Germany's Merck KGaA might be encouraged with its proposed acquisition of Bio-Techne given the company exceeded expectations in past big deals, UBS analysts say in a research note. In previous deals for Millipore, Versum and Sigma-Aldrich, the life-sciences and chemical group beat initial cost-saving targets while generating additional revenue on top, according to UBS. The portfolio of lab-tools supplier Bio-Techne is highly skewed to the U.S., and Merck could leverage its international footprint to generate more revenue, the analysts say. "While the CFO encouraged investors to not over-estimate additional savings at this early stage, we expect that the market will assume more based on the prior Merck playbook," UBS says. Shares fall 2.2%. (adria.calatayud@wsj.com)
0451 ET - Merck KGaA's proposed acquisition of life-science tools supplier Bio-Techne seems like a strong strategic fit, analysts at UBS say in a research note. The deal adds complementary growth assets that don't dilute the profitability of Merck's life-science business and brings Bio-Techne's protein-science expertise to its portfolio, the analysts say. The acquisition should immediately benefit sales and adjusted Ebitda margin for the German pharmaceutical-and-chemical group, according to UBS. Merck doesn't see any material overlap that could raise antitrust concerns, the analysts add. Shares fall 2%. (adria.calatayud@wsj.com)
0427 ET - It is too early to say what will happen to Bayer's dividends after the U.S. Supreme Court ruled in the company's favor in a case over its Roundup weedkiller, according to Jefferies analysts. Given the German company's debt levels and, perhaps, the need for dealmaking to boost its pharma business, investors shouldn't rush any assumptions on the dividend, the analysts say in a research note. Jefferies lifts its target price on Bayer stock to 46 euros from 40 euros, citing the favorable Supreme Court ruling. Shares rise 0.1% to 47.06 euros. (adria.calatayud@wsj.com)
0417 ET - A Bayer breakup looks possible, but it shouldn't be taken for granted even if the U.S. Supreme Court ruled in the company's favor in a case over its Roundup weedkiller, Jefferies analysts say in a research note. While many think the Supreme Court ruling could make a breakup more likely, the challenges the group's pharma business would face as a standalone company remain a potential hurdle, the analysts say. The German group's pharma business is expected to grow at a slower pace than peers over the next five years, and a couple of drugs that should help drive that growth will face risk from rival products, they add. Moreover, its drug pipeline is at an early stage, and its debt load leaves little room for acquisitions, according to Jefferies. Shares fall 0.6%. (adria.calatayud@wsj.com)
0403 ET - 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)
0210 ET - 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)
1902 ET - 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)
1830 ET - 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)
1222 ET - 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)
(END) Dow Jones Newswires
June 26, 2026 12:20 ET (16:20 GMT)
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