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.
0922 ET - Evotec's profit warning this week exposed the extent to which the German drug-discovery company relies on contracts yet to be signed, which makes its future prospects uncertain, Berenberg analysts say in a research note. The guidance reset is a setback that pushes Evotec's near-term visibility to an all-time low, according to Berenberg. "It is highly surprising to see the sheer scope of uncontracted strategic partnerships, both old and new, and high-margin milestone assumptions that were originally baked into the FY 2026 outlook--in contrast to prior earnings call comments," the analysts say. Berenberg cuts its stock recommendation on Evotec to hold from buy, and slashes its target price to 3.60 euros from 9.40 euros. Shares fall 1.3% to 3.46 euros. (adria.calatayud@wsj.com)
0915 ET - Hikma Pharmaceuticals is shifting spending toward more differentiated assets, investing in U.S. manufacturing and sustaining momentum, which seem the right priorities for a recovery, analysts at Citi say in a research note. "We see Hikma as a business in strategic reset, with the right priorities across all three divisions, and we see the current valuation as providing a compelling entry point into this recovery thesis," the analysts say. The London-listed manufacturer of generic drugs is investing in a plant in Bedford, Ohio, to make its own products and for other companies under contract. Whether its finances can reach an inflection point will largely depend on whether Hikma delivers on its plan, the analysts add. Citi starts coverage of Hikma with a buy recommendation and a target price of 17 pounds on the stock. Shares rise 2.5% to 15.32 pounds. (adria.calatayud@wsj.com)
2109 ET - Malaysia's glove makers are expected to see lower average selling prices in 3Q after prices peaked in May, as raw material costs ease and the market normalizes, Kenanga IB analyst Raymond Choo Ping Khoon says in a note. While 2Q earnings are likely to remain strong, profits could soften in coming quarters as pricing declines, he says. However, earnings are expected to recover gradually over the longer term, as manufacturers improve margins through greater automation and lower production costs, he reckons. Kenanga downgrades Malaysian glove sector's rating to neutral from overweight, pegging Kossan Rubber Industries as top pick, given its strategic pivot toward specialty and cleanroom gloves. (yingxian.wong@wsj.com)
1304 ET - Johnson & Johnson's latest quarterly results offer a positive signal for medical device end markets, even though the company reported lower-than-expected growth in its medical device division, Baird analysts say in a note. J&J's medical technology miss was largely due to company-specific issues in its cardiovascular unit, masking reasonably solid performances from surgical, vision and orthopedics, they say. The analysts say the report offers positive read throughs for companies like Zimmer Biomet Holdings and Stryker in orthopedics, and for Medtronic and Abbott Laboratories in cardio and electrophysiology, among others. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 12:20 ET (16:20 GMT)
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