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.
1203 ET - Eli Lilly shouldn't face much risk from the possibility that Indian suppliers could sell cheap generic GLP-1 drugs in the U.S. and Europe beginning in 2031, UBS analysts write in a note. Their analysis of the supply chain suggests that Indian suppliers will be structurally capped at a 25% to 30% share of the global market for first-generation GLP-1s, facing delivery pen and fill/finish supply constraints. By the time Indian generics are on the market, the analysts write, most demand will have turned to improved next-generation GLP-1s. "We think LLY can beat numbers and has upside bias to consensus earnings estimates," the analysts write. "Much better and newer products will be available for consumers that will prefer higher efficacy/lower side effects." (elias.schisgall@wsj.com)
1043 ET - Affordable care act subsidy cuts are driving slower than expected growth for Intuitive Surgical's da Vinci robotic platforms in the U.S., says Deutsche Bank Research analyst Imron Zafar. He adds there is a clear drop off in elective and deferrable procedures. Crucially for investors, Intuitive maintained its full-year procedure growth given the headwinds rather than lifting it. The lack of upward movement is likely to disappoint Wall Street, Zafar says, given the company's long history of beating and raising expectations. (grace.yoon@wsj.com)
1031 ET - As Intuitive Surgical shares drop 11% following 2Q earnings, analysts at Oppenheimer say competitive headwinds lie ahead and pricing dynamics may be unsustainable in the long term. Though Intuitive posted both higher 2Q profits and sales, Oppenheimer says the company is likely to face competition from homegrown Chinese systems and its shift to extended use instruments is bound to pressure FY27 growth. The analysts also pointed to slowing procedure growth in the U.S., which the company reported was 12% year over year from 14% in 1Q. (grace.yoon@wsj.com)
1013 ET - European pharma stocks are lagging behind the broader market, but the sector should benefit as investors start to look for trades beyond big tech, Intron Health's Naresh Chouhan and Dominic Rose say in a research note. This year's underperformance came after pricing deals with the Trump administration at the end of last year boosted the sector, Intron says. "We do not believe investors have fallen out of love with pharma, it is just that many believe the sector is up with events for now," the analysts say. Upcoming strategy updates from companies like GSK, Novo Nordisk and Roche, and potential gains from AI should help pharma stocks, they add. Intron says it favors UCB, AstraZeneca, Roche and Novartis in the near term. The Stoxx Europe 600 Health Care index rises 0.3%. (adria.calatayud@wsj.com)
0951 ET - GSK's oncology business has stronger assets than it is credited for and they could make a difference next decade, analysts at Jefferies say in a research note. The U.K. drugmaker has made a number of deals that add revenue potential without putting too much pressure on profitability and it still has room for more over the next few years, according to Jefferies. "The acquisitions of IDRx as well as Nuvalent have added assets to the oncology portfolio that have one thing in common--long duration of therapy plus an ability to move up the treatment cascade," the analysts say. "They are highly profitable assets that should start to contribute to the top-line as the HIV business starts to slow down." Shares fall 1.7%. (adria.calatayud@wsj.com)
0756 ET - GSK will likely need to take a write-down on an experimental drug for chronic cough after it stopped clinical development, J.P. Morgan analysts say in a research note. The U.K. drugmaker said it decided to terminate development of the drug for chronic cough after it delivered mixed results in a late-stage study and missed primary and secondary objectives in another trial. JPM estimated peak sales for the drug at 1.4 billion pounds, with 2031 sales forecast at 300 million pounds. GSK's recent acquisition of Nuvalent is likely to offset some of the hit from the loss of camlipixant, but shares are still expected to be under pressure, the analysts say. Shares fall 3.7%. (adria.calatayud@wsj.com)
0547 ET - Intuitive Surgical's second-quarter revenue print and forward guidance came in below expectations, Jefferies analysts write. The medical robotics group maintained its growth forecast for the use of its Da Vinci robot, disappointing investors who expected the company to raise its estimate, the analysts say. Moreover, growth in robot-assisted surgeries in the U.S. is slowing, as patients put off non-emergency surgeries following changes in insurance coverage, they say. Intuitive Surgical's balance sheet remains strong, while gross margins were wider than market consensus expected, the analysts note. They slightly lower their growth estimates for the company. Shares fall close to 11.5% premarket.(josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
July 17, 2026 12:20 ET (16:20 GMT)
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