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.
0739 ET - Hikma Pharmaceuticals' guidance looks conservative, given that the London-listed drugmaker reiterated its full-year outlook despite a strong first-half performance, RBC Capital Markets' Harry Sephton says in a note. First-half sales were 1% ahead of consensus expectations and core operating profit beat forecasts by 11%, the analyst says. This was mainly driven by Hikma's branded-drugs division, which will be well received by investors, he adds. Despite a much stronger first-half core operating margin, Hikma has reiterated its guidance for a 2026 core operating profit of $720 million to $770 million, which compares with consensus estimates of $731 million, the analyst says. Shares jump 10%. (adria.calatayud@wsj.com)
0628 ET - Germany's Merck KGaA raised its full-year guidance for each of its businesses given that all three are performing better than expected, which should be well received by investors, analysts at Jefferies say in a research note. The chemical-and-pharmaceutical group reported strong second-quarter results, led by its life-sciences segment, Jefferies says. But Merck's healthcare segment remained resilient after its rare-disease drugs helped it mitigate a hit from generic competition for its Mavenclad multiple-sclerosis medicine, the analysts say. Moreover, AI-driven demand propelled growth for the group's electronics segment, they add. Shares rise 1.5%. (adria.calatayud@wsj.com)
0441 ET - Novo Nordisk upgraded full-year guidance as second-quarter results beat expectations, aided by the continued strong uptake for the Wegovy weight-loss pill, AlphaValue analyst Abhishek Raval writes. However, the extent of the upgrade disappointed investors, as it implies an 8% constant currency sales decline in the second half of the year. "We consider this revised guidance as overly conservative and see a possibility of a further upward revision." AlphaValue says it reiterates its buy rating on the stock as the company could reclaim its obesity market leadership via the Wegovy pill. Shares rise 0.9%.
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