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.
1019 ET - Belgian pharmaceutical company UCB's recent deals bolster a drug pipeline that already had potential to unlock additional growth opportunities over the next two years, Berenberg analysts say in a research note. UCB's current share price seems only to reflect its approved medicines, with those in the pipeline coming "for free," the analysts say. "This is unwarranted, in our view, given the historical returns track record and breadth of pipeline," they add. UCB recently acquired Candid Therapeutics, Neurona Therapeutics and Antengene. All three are good strategic fits that boost the company's immunology and neuroscience portfolios with new assets that will enter phase 2 and 3 studies later this year, according to Berenberg. Berenberg lifts its target price on UCB to 305 euros from 209 euros. Shares rise 1.7% to 262.20 euros. (adria.calatayud@wsj.com)
0927 ET - The government says leisure and hospitality employment declined by 61,000 in June, reflecting weaker than usual seasonal hiring. That contrasts sharply with the 70,000 gain in May's report. "It looks like the World Cup hiring spree was a one-month phenomenon in May," according to Brian Bethune of the Boston College Economics department. Thus far in 2026, the BLS says employment in leisure and hospitality has shown little net change. Elsewhere in the report, employment in professional and business services continued to trend up in June with a rise of 36,000. The industry has added 172,000 jobs since a recent low in October 2025. Employment in health care continued its upward trend, with a rise of 22,000, but at a slower pace than the average monthly gain over the prior 12 months. (patrick.sheridan@wsj.com)
0914 ET - EssilorLuxottica has plenty of untapped opportunity ahead in its advance into smartglasses, analysts at UBS write in a note. The Franco-Italian eyewear behemoth has seen questions raised around its partnership with Meta on several models of AI-equipped glasses, which some analysts say could dilute the Ray-Ban maker's margins and eat into core eyecare demand. But in reality, demand remains strong and there is scope to boost awareness of the category, UBS says. That suggests EssilorLuxottica shouldn't worry about new rivals entering the smartglasses market, the bank says. "Our long-standing view has been that greater competition is necessary to help build the category and accelerate adoption in the US and globally," the analysts say. (joshua.kirby@wsj.com; @joshualeokirby)
0322 ET - Roche Holding's positive results in a lung cancer trial give the Swiss drugmaker a small win, but it would be premature to claim overall victory, Jefferies analysts say in a research note. Roche's divarasib met the goals in a late-stage clinical trial for a type of lung cancer in patients already treated, but might struggle in the bigger population of previously untreated patients, the analysts say. The study results mean Roche can target a revenue opportunity of between 1 billion and 2 billion Swiss francs, according to Jefferies. "The bigger opportunity would be in the [first-line setting], but that is a whole different ballgame," the analysts add. Success for divarasib in the first-line setting for this type of lung cancer would open up a revenue opportunity of 3 billion to 5 billion francs, Jefferies says. Shares rise 1%. (adria.calatayud@wsj.com)
0245 ET - Bayer's progress toward resolving U.S. litigation over its Roundup glyphosate-based weedkiller means investors' focus should start to shift to the fundamental aspects of the business, Deutsche Bank's Virginie Boucher-Ferte says in a research note. "Last week's Supreme Court ruling is pivotal to Bayer's multipronged approach to draw a line under its glyphosate liability," the analyst says. "All in all, we believe it should effectively cap the glyphosate exposure within existing provisions." The German group has a compelling growth profile in both its agricultural and pharmaceutical units, she adds. Deutsche Bank raises its recommendation on Bayer stock to buy from hold, lifting its target price to 60 euros from 45 euros. Shares closed at 49 euros, before news that Bayer plans to separate its Roundup business. (adria.calatayud@wsj.com)
0225 ET - Roche Holding's latest study results show an experimental drug worked in a type of lung cancer for which new treatments are needed, Vontobel's Stefan Schneider says in a research note. The late-stage study tested Roche's divarasib drug candidate against other approved medications for a specific mutation of lung cancer and showed the product developed by the Swiss drugmaker led to meaningful improvements, the analyst says. "Efficacious treatments for this type of lung cancer represent a significant unmet need in lung cancer care," he adds. Vontobel estimates divarasib could generate 600 million Swiss francs in sales at its peak, and increases the probability that this forecast is hit to 80% from 40% previously. As a result, Vontobel lifts its target price on Roche stock to 348 francs from 346 francs. Roche shares closed at 328.80 francs Wednesday. (adria.calatayud@wsj.com)
0214 ET - Some non-AI sectors could offer better portfolio resilience as Big Tech and semiconductor stocks become more volatile, Saxo Markets chief investment strategist Charu Chanana says in a note. While AI is still the most important long-term investment theme, the AI trade positioning has become increasingly crowded, making them swing wildly in both directions, she says. Instead of abandoning AI stocks, investors need to rebalance oversized AI winners and reduce mega-cap concentration, she says. Chanana thinks healthcare could be a good hedge, as the sector is trading below the broader market and has different earnings drivers from tech. (sherry.qin@wsj.com)
0207 ET - Abivax's latest disclosures mean its lead drug candidate has the most compelling dataset in ulcerative colitis at the moment, Stifel analysts say in a research note. New study results released this week by the French biotech company for its obefazimod experimental drug for ulcerative colitis should help settle a debate among investors about the medicine's malignancy risk, the analysts say. Moreover, obefazimod's efficacy was validated, with robust results even for hard-to-treat patients, they add. Stifel lifts its estimate on obefazimod's peak sales to 4 billion euros from 2.5 billion euros previously, and expects this to be achieved by 2032 or 2033. (adria.calatayud@wsj.com)
0159 ET - Abivax's latest data should ease investors' concerns about the safety of its lead drug candidate for ulcerative colitis, increasing the likelihood of a takeover, Stifel analysts say in a research note. A sale to a big pharma company now looks more credible than ever, according to Stifel. "In light of this compelling data package and the scarcity of late-stage assets in [ulcerative colitis], we believe Abivax stands out as an attractive potential M&A candidate," the analysts say. The French biotech company could fetch a valuation of roughly 15 billion to 25 billion euros in a potential takeover, the analysts estimate. Stifel raises its target price on Abivax stock to 175 euros from 115 euros, and sees an 80% probability of a takeover compared with 70% previously. Abivax shares closed at 117.50 euros on Wednesday, giving the company a market value of 9.4 billion euros. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
July 02, 2026 12:20 ET (16:20 GMT)
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