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.
0707 GMT - Fresenius Medical Care's surprise CEO change will be taken negatively by investors and points to a challenging outlook for the German dialysis specialist, analysts at J.P. Morgan say. The departure of CEO Helen Giza comes less than 18 months after she presented an ambitious business plan with guidance through 2030, the analysts say in a research note. Her exit suggests it is now less likely the company will be able to demonstrate the benefits from the rollout of a new dialysis technology in the U.S., they add. The end of regulatory tailwinds that recently flattered the group's results mean Fresenius Medical Care could be set for an operating profit contraction, according to JPM. Shares fall 2.7%. (adria.calatayud@wsj.com)
0522 GMT - Gland Pharma is likely benefiting from deepening ties with China's Shanghai Fosun Pharmaceutical, which center around four priorities, Nomura analysts say in a research report. One is contract development and manufacturing organization contracts that use Gland Pharma's large injectable capacity, the analysts say. Others are: joint business development between Gland Pharma and subsidiary Cenexi; the Indian pharmaceutical company's entry into biologics drug substances and products; and its sourcing innovation assets. Nomura raises the stock's target price to 3,750.00 rupees from 3,330.00 rupees to reflect a valuation roll-forward, with an unchanged buy rating. Shares are 0.7% lower at 3,130.55 rupees.(ronnie.harui@wsj.com)
0108 GMT - IHH Healthcare's recent share price weakness likely offers an attractive entry point, with earnings growth seen supported by more complex treatments, hospital expansions and Fortis-Gleneagles synergies, says Maybank IB analyst Nur Natasha Ariza in a note. Its focus on higher-value treatments and day-care services should also support growth beyond bed additions, she says. IHH's core net profit is expected to grow 18% annually over 2025-2028, faster than its 11% annual growth over 2016-2025, she reckons. Legal developments in its India operations provide little basis to revise earnings forecasts, in the analyst's view. Maybank maintains a buy rating on IHH and keeps its target price at 11.20 ringgit. Shares are unchanged at 7.90 ringgit. (yingxian.wong@wsj.com)
1329 GMT - AstraZeneca has a strong research-and-development engine that is still running despite recent setbacks, which bodes well for the U.K. drugmaker's long-term outlook, Bernstein analysts say in a research note. Shares in AstraZeneca have been under pressure lately and some investors are debating whether its current woes are comparable to what Swiss peer Roche experienced between 2022 and 2025, when it was punished by the market after a series of disappointing trials, the analysts say. The breadth and depth of AstraZeneca's drug pipeline means those fears seem misplaced and the U.K. company is unlikely to share Roche's fate, the analysts add. Bernstein trims its target price on AstraZeneca to 198 pounds from 200 pounds. Shares rise 1% to 120.80 pounds.
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