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.
1100 ET – Bayer is expecting a historically high U.S. corn harvest, executives say. The German-based agriculture giant that sells American farmers seeds and pesticides says farmers are cautiously optimistic about how good the crops are looking, but also feeling nervous about how that will depress corn prices and ultimately their income. “I think they’ve got one eye on their fields and another eye on the futures prices, which are pretty low.” said Bayer CEO Bill Anderson on a call with reporters. (patrick.thomas@wsj.com)
1052 ET – Bayer CEO Bill Anderson says a recent uptick in new Roundup weedkiller litigation claims might be due to plaintiffs seeing a “window closing” as the Supreme Court considers taking on Bayer’s case. Bayer now faces 192,000 claims, up from 181,000 earlier this year. It now has 61,000 unresolved claims relating to its glyphosate herbicide—down from 67,000 at its last update following a large settlement. He says the current situation is not sustainable and requires a solution either from lawmakers or the high court. He also says that the regulatory environment makes it difficult for the company to launch new herbicide products from fear of a new wave of litigation. “There has to be a solution rooted in policy, rooted in law, rooted in a high court interpretation because the current situation is simply unsustainable,” Anderson says on a call with reporters. (patrick.thomas@wsj.com)
1014 ET – Germany’s Merck KGaA is expected to report sales and adjusted earnings for the second quarter roughly in line with what it posted for the year-earlier period, according to consensus estimates compiled by Vara Research. The German life-sciences and chemicals group is due to release second-quarter results Thursday and analysts expect its net sales to come in at 5.32 billion euros, which compares with the 5.35 billion euros Merck reported for last year’s second quarter. Analysts estimate the company’s Ebitda before exceptional items to be 1.52 billion euros, or a touch higher than the 1.51 billion euros Merck made in the year-earlier period. Shares fall 1.8%. (adria.calatayud@wsj.com)
0645 ET – Fresenius’s second-quarter results beat consensus estimates and subdued investor expectations, with its Helios hospital business and Kabi pharma unit delivering strong performances, Citi analysts say in a research note. “We see [the second-quarter results] as better-than-expected against subdued investor expectations—management had always guided for [the second quarter] to be the low point of the [year]—with lower-than-expected financial expenses providing upside” to 2025 estimates for earnings per share, Citi says. The German healthcare group raised its full-year revenue guidance and its revised expectations largely captures consensus estimates for full-year adjusted earnings, according to Citi. Shares rise 0.6%. (adria.calatayud@wsj.com)
0505 ET – Bayer executives say they are confident the German agriculture-and-pharmaceutical group’s powerful herbicide dicamba will be back on the market for American farmers next year. The chemical was taken off the market last year amid concerns about it drifting to neighboring farmers’ fields when sprayed in hot weather. The Environmental Protection Agency last month proposed an approval for Bayer, Syngenta and BASF’s dicamba products for next year. Bayer executives said on a media call that dicamba approval for 2026 would help sales in its soybean and cotton business. (patrick.thomas@wsj.com)
0338 ET – Novo Nordisk’s weak valuation is a tempting opportunity to gain exposure to a company at the forefront of the enormous market opportunity in obesity and chronic diseases, says Hargreaves Lansdown’s Derren Nathan. “But unless the new chief hits the ground running, the risks associated with catching a falling knife can’t be ignored,” he says. The recent guidance cut, coupled with doubts around incoming CEO Maziar Mike Doustdar’s ability to turn the ship around, has seen some $95 billion of Novo’s market value evaporate since last week. The group is now zoning in on improving efficiency. Novo’s first-half performance looks in decent shape at first glance, but the headline figures are flattered by accounting adjustments, Nathan adds. Shares fall 0.4%. (dominic.chopping@wsj.com)
0329 ET – Gland Pharma appears optimistic about its sales volume recovery and growth, Axis Securities’ Aman Goyal says in research report. The generic injectable manufacturer’s view is driven by new product launches and a strategic focus on biologics and complex products, the analyst notes. The Indian company is targeting sales of 20 million glucagon-like peptide-1 cartridges in the near term, with contract manufacturing pricing expected between $1 and $2 per unit. This could translate into revenue of over INR3 billion, says the brokerage, which raises the stock’s target price to INR1,950.00 from INR1,580.00 with an unchanged hold rating. Shares are 0.55% lower at INR1,953.55. (ronnie.harui@wsj.com)
0327 ET – Bayer’s second-quarter results were largely as expected given that the company reported preliminary numbers and raised its full-year guidance last week, Morgan Stanley says. With headline numbers already known, the German agriculture-and-pharmaceutical group provided an update on its U.S. litigations. It now has 61,000 unresolved claims relating to its glyphosate herbicide—down from 67,000 at its last update—and expects a decision on the Solicitor General petition on whether the Supreme Court should review a glyphosate case from October. “We believe the Supreme Court is likely to follow the recommendation of the Solicitor General; if the Supreme Court accepts the case for review, a decision would likely take place by the end of the 2025-2026 session—i.e. by end of June 2026,” MS says. Shares fall 3.8%. (adria.calatayud@wsj.com)
0319 ET – Novo Nordisk’s second-quarter sales were in line with expectations, but include a boost from a 3 billion Danish kroner one-off rebate adjustment in the U.S., Intron Health analyst Naresh Chouhan writes. Despite this, the pharmaceutical company’s gross margin was in line with expectations and EBIT missed by 2% due to selling and marketing costs. Earnings per share missed by 3%. Intron Health thinks Ozempic’s net price fell by 7% on quarter after accounting for the rebate. The company’s share of the U.S. GLP-1 market continues to deteriorate, with a significant 480 basis points decline in first-time prescriptions in just one quarter, it says. Wegovy’s net price looks flat versus the first quarter, but it could have benefited from some of the one-off rebate, Intron adds. Shares rise 0.3%. (dominic.chopping@wsj.com)
2328 ET – Bumrungrad Hospital’s 2H business momentum may improve on a rebound in foreign patient arrivals in Thailand, Thanachart Securities’ Siriporn Arunothai says in a research report. The hospital saw a strong recovery in foreign patient inflows, especially from the Middle East, in July, thanks to increased overseas marketing and stronger relationships with foreign Chambers of Commerce and embassies, the analyst says. The Thai company also stands out as a premium healthcare provider with strong brand value and operational excellence, the analyst adds. The brokerage raises the stock’s target price to THB216.00 from THB186.00 to reflect a valuation roll-over, with an unchanged buy rating. Shares are 1.3% lower at THB191.50. (ronnie.harui@wsj.com)
2327 ET – Malaysia’s medical tourism is set to grow, supported by strong demand, expanded hospital capacity, and government backing, says MBSB Research in a note. The sector’s outlook may remain positive, with the Malaysia Year of Medical Tourism 2026 campaign expected to boost global visibility, it notes. Malaysia is also promoting holistic care, including wellness and aged care, to tap long-term revenue streams from foreign retirees and capture a larger share of the global health and wellness market, it adds. However, MBSB says the expansion of aged care would depend on the Health Ministry establishing clear guidelines to ensure effective implementation and accessibility. MBSB maintains a positive rating on Malaysia’s healthcare sector, with IHH Healthcare and KPJ Healthcare as top picks. (yingxian.wong@wsj.com)
2223 ET – Hartalega Holdings’ sales may improve from its fiscal 2Q due to restocking by its U.S. clients, says CIMB Securities analyst Walter Aw Lik Hsin in a note. Hartalega’s strong U.S. exposure may help offset pressure in other markets as global buyers diversify sourcing. However, the company’s longer-term recovery may remain uncertain amid stiff competition from Chinese rivals and potential new supply, he cautions. Aw views Hartalega’s MYR101 million tax bill as a one-off, and notes that the company is seeking legal advice and evaluating its options. CIMB cuts Hartalega’s target price to MYR1.45 from MYR2.30, on expectations of lower selling prices, softer sales volume and a stronger ringgit. It keeps a hold rating on the stock, which is 4.5% lower at MYR1.26. (yingxian.wong@wsj.com)
