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.
1219 ET [Dow Jones]--Gains in bitcoin through August have inspired optimism in the cryptocurrency space, with CoinMarketCap's Fear and Greed index at 77 out of 100, a "greed" reading. But the foundation of these gains are possibly not as strong as some may have hoped. "Perpetual-futures positioning shows the move up came mostly from shorts being liquidated and covered; few new long positions were opened, and shorts have started to rebuild," say analysts with CryptoQuant in a note. Bitcoin has broken through the $80,000 mark, trading up 4.7% to $81,054. Ethereum rises 4.7% to $2,506, XRP climbs 7.4% to $1.45, and Solana is up 4.8% to $104.45. (kirk.maltais@wsj.com)
0810 ET - AstraZeneca's new drug for chronic obstructive pulmonary disease could become a market leader if it proves to be effective across all patient groups, Berenberg analysts say in a research note. Initial trial results released by the U.K. drugmaker earlier this year showed the drug, tozorakimab, delivered benefits both in the primary population of former smokers and in the overall population, and across stages of lung function, the analysts say. Similar drugs from Roche and Sanofi delivered mixed results in trials last year, but AstraZeneca's is expected to work across a broader cohort of COPD patients, they add. "We would view 30% exacerbation reduction to be a highly positive result and ahead of expectations," Berenberg says. Shares rise 1.5%. (adria.calatayud@wsj.com)
0555 ET - Bayer sees its agricultural business on track to hit 2029 targets set a couple of years ago, but the market doesn't seem to be fully grasping the unit's potential, analysts at J.P. Morgan say in a research note. At an event held Wednesday, the German conglomerate reiterated its 2029 forecast for its agricultural division, with incremental sales of 3.5 billion euros over the 2024-29 period and an improvement in its underlying Ebitda margin to the mid-20s percentage range. The outlook confirmation is encouraging, because the unit's potential is undervalued by the market and consensus estimates for 2029 sales and underlying Ebitda are short of what Bayer's guidance implies by 3% and 9%, respectively, according to JPM. Bayer shares fall 0.5%. (adria.calatayud@wsj.com)
2258 ET - An increase in the Australian National Aged Care Classification starting price of 2.55% is well short of the cost inflation faced by Regis Healthcare and other residential aged-care providers, says UBS. Wage inflation in the health sector was 3.8% in FY 2026, the bank says. "We expect a strong negative reaction from the sector, including the potential for greenfield projects to be put on hold by Regis and others given the reduced certainty of returns," says UBS. It cuts its target price on Regis to 5.95 Australian dollars a share from A$6.75 a share but retains a neutral rating. The stock is down 27% at A$4.31. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1959 ET - Insilico offers one of the clearest tests of whether AI can expand pharma innovation beyond faster molecule design, Citi analysts. They start coverage with a buy/high-risk rating. Insilico has sustained preclinical candidate generation since 2021 across multiple therapeutic areas, supporting the repeatability of its AI-discovery process. The 15 partnerships with global firms it has disclosed have an aggregate headline contract value exceeding $11 billion and suggest it can convert hypotheses into development assets and commercial transactions at scale. Of the various clinical assets on track to validate Insilico's AI-driven drug design, Citi sees rentosertib--the first AIDD candidate in Phase III--as the biggest valuation catalyst. It sets a HK$85 target on the stock, which closed at HK$44.96. (fabiana.negrinochoa@wsj.com)
1929 ET [Dow Jones]--The addition of a black box warning to the label of CSL's Injectafer is unlikely to have a big impact, according to Citi. The Food and Drug Administration approved revised labeling for the iron replacement medicine to warn of the risk of low levels of phosphate in the blood. "We do not think it will change much," says Citi. "Generics to Injectafer have become available over the last few weeks and, per FDA, are expected to update their labels also." Citi has a neutral rating and A$160/share target on CSL. The stock ended Wednesday at A$173.85. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1843 ET [Dow Jones]--Jefferies's takeaway from Sonic Healthcare's annual result last month: FY27 hinges on three regions. Analyst David Stanton says the U.S. remains the key drag. Sonic has begun an operating review of its U.S. operations targeting organic growth and margin recovery off a low base. In the U.K., integration delays to a big new contract and labor costs are weighing on performance. Sonic's focus in the U.K. is shifting to organic growth and efficiencies, Jefferies says. "And Australian Radiology's margin dilution from greenfield investment should ease on cost discipline and productivity gains," it adds. Jefferies retains a hold call and A$21.00/share price target on Sonic, which ended Wednesday at A$18.73.
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