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.
0802 GMT - Novartis's better-than-expected results for the second quarter and reiteration of its full-year guidance mean consensus expectations on the Swiss drugmaker's core earnings have room for upgrades, analysts at J.P. Morgan say in a research note. For the second quarter, the company's core earnings per share of $2.41 beat consensus forecasts by 12%, the analysts say. Novartis still expects core operating profit to fall by a low-single-digit percentage this year. Assuming the benefit of stock buybacks is fully offset by incremental financial expenses, the company's 2026 core EPS would land at $8.89, or 2% above consensus forecasts, according to JPM. The results bode well for Novartis's shares, the analysts say. Shares are up 2.1%. (adria.calatayud@wsj.com)
0744 GMT - Novartis reaffirmed its full-year guidance after second-quarter results beat expectations, which implies a slow second half, Intron Health's Naresh Chouhan and Dominic Rose say in a research note. The Swiss drugmaker expects this year's sales to grow by a low-single-digit percentage, and core operating profit to decline by a similar amount, when excluding currency changes. This follows declines of 2% for sales and 7% for core operating profit in the first half, the analysts say. Among the company's key products, anti-inflammatory drug Cosentyx, multiple-sclerosis treatment Kesimpta and leukemia medicine Scemblix all beat expectations, the analysts say. Breast-cancer medicine Kisqali and prostate-cancer therapy missed forecasts, they add. Shares rise 1.9%. (adria.calatayud@wsj.com)
0726 GMT - Novartis's second-quarter sales and core earnings beat expectations partly due to timing effects that will be a drag on its performance this quarter, Jefferies's analysts say in a research note. Quarterly sales at the Swiss drugmaker beat consensus forecasts by 5%, the analysts say. Just over half of the difference was due to strength in established brands that benefited from sales phasing that the company expects to give back in the third quarter, they add. Moreover, core earnings benefited from the timing of expenses tied to the Avidity acquisition, which should become a drag in the third quarter, according to Jefferies. The reversal of both factors leaves Novartis's 2026 guidance unchanged, the analysts say. Shares rise 1.6%. (adria.calatayud@wsj.com)
0649 GMT - Novartis's second-quarter results were clearly above expectations, but it is surprising that its solid performance didn't trigger a guidance upgrade, Vontobel's Stefan Schneider says in a research note. The Swiss drugmaker reported better-than-expected sales despite a hit from generic competition that was bigger than anticipated, Schneider says. Core operating profit exceeded consensus forecasts by a wider margin, which is surprising given the faster-than-expected generic erosion, he adds. Novartis had guided at the start of the year for a better performance in the second half than in the first, but it left its guidance unchanged despite a good second-quarter result, Vontobel says. (adria.calatayud@wsj.com)
0021 GMT - ResMed's bulls at Canaccord Genuity think its latest acquisition has come at an awkward time for the breath-tech supplier. The broker's analysts say investors were just starting to get excited about ResMed's gross-margin expansion and potential to push earnings leverage, which may be challenged by the acquisition of the Noctrix startup. The analysts do see opportunity in trying to address restless leg syndrome, which is Noctrix's focus, but warn that ResMed shares are struggling for direction ahead of the company's 4Q update. Canaccord Genuity cuts its target price on ResMed's ASX-listed stock by 10% to 40.00 Australian dollars. Shares are down 0.5% at A$28.05. (stuart.condie@wsj.com)
1532 GMT - Continued transatlantic trade threats reinforce the notion that the European Union must reject the U.S. probe into Germany over drug pricing, the DIHK German Chambers of Commerce's trade chief Volker Treier says. The U.S. in June said it would investigate the German government's plans to reduce spending on pharmaceuticals. There is great concern in German industry that the U.S. could soon impose further tariffs, Treier says. The EU should insist on compliance with the EU-U.S. trade deal agreed on last year, he says. "European regulatory sovereignty must not become a bargaining chip in negotiations with Washington." The EU shouldn't forget its long-term goal of eliminating the WTO-incompatible U.S. tariffs either, Treier notes. (edward.frankl@wsj.com)
0912 GMT - PolyPeptide Group's sale to Samsung Biologics should go ahead given the approval of the Swiss group's majority owner, RBC Europe analysts write. The chemicals and pharmaceutical manufacturing group's board recommended an offer from Samsung Biologics valued at around $1.8 billion, or 44.31 Swiss francs a share. Draupnir, which owns a 56% stake in PolyPeptide, committed to tender its ownership share, which "effectively makes this a done deal," the analysts write. Moreover, the deal will likely not provoke any competition fears among regulators, while the offered price looks to be fair, they write. Shares should trade close to the offer price, they add. PolyPeptide stock rises 4.8% to 43.75 Swiss francs. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
July 21, 2026 04:20 ET (08:20 GMT)
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