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.
1032 ET - UCB's portfolio offers growth potential into the next decade after the acquisitions of Candid Therapeutics and Neurona, so the Belgian drugmaker's next deals might target early-stage assets, Bank of America analysts say. Data due next year from a midstage trial of its galvokimig eczema drug candidate will likely inform UCB's decision on whether it needs to add further late-stage medicines to its pipeline over time, the analysts say. UCB executives seemed confident at a Bank of America event that the company's top-selling product Bimzelx can withstand competition from new drugs, the analysts say in a research note. Shares rise 0.6%. (adria.calatayud@wsj.com)
0955 ET - Novartis CEO Vas Narasimhan is confident in the midterm outlook for the company, with drug launches set to lift top-line growth next year, Bank of America analysts say. Speaking at a Bank of America conference, Narasimhan struck a bullish tone on the Swiss drugmaker's prospects for the 2026-31 period and signaled previous guidance of sales growth of 5% to 6% in the five years through 2030 would be extended to 2031 at an update scheduled for November, the analysts say. Sales growth looks set to accelerate next year relative to the second half of 2026, when the company expects to post a mid single-digit percentage increase, and its performance at the end of the fourth quarter will be the best proxy, the analysts add. Shares rise 1.5%. (adria.calatayud@wsj.com)
0931 ET - The healthcare and life-sciences sector is increasingly turning to AI, but the technology's impact on drug discovery remains in the second or third inning, analysts at Citi say in a research note. "AI's initial impact is likely to be on productivity, speed, and cost avoidance vs. an improvement in [research-and-development] success rates," Citi says. Still, AI is starting to seep into the clinical setting and reshaping biopharma, the analysts say. Big pharma companies increasingly view AI as a tool to enable identification of targets for new drugs, design new medicines and develop them, they add. (adria.calatayud@wsj.com)
0732 ET - EssilorLuxottica's new smart eyewear launches with Meta are a sign of confidence in growth opportunities and the group's ability to maintain leadership in the category, Equita SIM's Domenico Ghilotti says. The companies will launch new lines and models featuring artificial intelligence and intend to expand the category into other markets. "[EssilorLuxottica's] commercial response to the market's fears related to the growth opportunities of the category and the growing competition seems very clear and strong," the analyst writes in a research note. Shares in EssilorLuxottica are down 2%. (andrea.figueras@wsj.com)
0646 ET - EssilorLuxottica's new product launches with Meta should help increase consumer awareness, analysts at J.P. Morgan say in a note. The Franco-Italian eyewear group and the Facebook owner unveiled new glasses featuring artificial intelligence and revealed plans to expand into more markets. The launches, category expansions and new feature additions should be seen as positive for the smart glasses category, the analysts say. The new products could attract new consumers to the segment at both the higher end and the less expensive level, they add. (andrea.figueras@wsj.com)
0321 ET - Hikma Pharmaceuticals' new chief financial officer is a "high-calibre hire", RBC Capital Markets' Harry Sephton says. The London-listed pharmaceutical company named ViiV Healthcare's Rebecca Hall as its next chief financial officer on Thursday. Hall's operational and financial experience at ViiV and GSK should translate well to Hikma, RBC says. The analyst expects an orderly transition at Hikma, with interim CFO Areb Kurdi staying in his role until Hall starts next year. Shares are up 1.2%. (michael.hennessey@wsj.com)
2220 ET - Malaysian healthcare sector could remain supported by the rising prevalence of non-communicable diseases, an ageing population, and increasing health awareness, CIMB Securities analyst Chun Sung Oong says in a note. He pegs IHH Healthcare as his new top pick, citing its stronger earnings visibility. IHH's business is expected to benefit from patients shifting to private hospitals amid high occupancy at public hospitals. In India, Gleneagles India's profitability is expected to improve as it works more closely with Fortis Healthcare. The potential IPO of AsiaOne Healthcare could renew investor interest in Malaysia's healthcare sector, as the listing could support higher valuations, he adds. CIMB maintains an overweight rating on the Malaysian healthcare sector.
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