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.

0824 ET - Moderna shares surging 176% on Wednesday may have been an overreaction from Wall Street to the strong results from Moderna and Merck's mRNA-based vaccine for melanoma patients, UBS analysts say. Moderna's valuation jumped to $70 billion; ascribing a modest valuation to the company's Covid-19 revenue, that would imply a $60 billion valuation to the vaccine alone, which would have to translate to $20 billion in annual sales, the analysts say. That could be unrealistically high, they say. The analysts maintain a $150 price target for Moderna after it closed at $174 on Wednesday. Shares slide 10% to $156.30 premarket. (dean.seal@wsj.com)

0727 ET - Novonesis results show the group is pulling away from its peers, JPMorgan analysts write. The Danish producer of biological products like enzymes and probiotics notched organic sales growth of 9% on-year in the second quarter, topping analysts' expectations. The group also raised its outlook for 2026 sales growth. The results demonstrate "broad-based strength across" Novonesis, and the group's increasing competitive advantage, JPMorgan analysts write in a note to clients. "This beat-and-raise reaffirms Novonesis' unique and differentiated growth franchise." As a result, the company's faltering share price over the last year--down 1.9% for the last 12 months--looks hard to justify, they say. Shares jump close to 11%. (josephmichael.stonor@wsj.com)

0522 ET - Merck KGaA's prescription drugs business is threatened by competition from Immunome and Sandoz, UBS analysts write. The Frankfurt-listed group's rare-cancer treatment Ogsiveo is less effective and convenient than an Immunome drug set for approval April 2027, the analysts note. Moreover, a generic copy of Merck's Erbitux cancer drug produced by Sandoz will hurt long-term revenue significantly more than the market is currently pricing in, they say. However, investors continue to have confidence in Merck's three divisions, and the stock is priced fairly, they say. UBS cuts its rating on the stock from buy to neutral, though it holds its price target at 150 euros. Shares fall 1.8% to 135.80 euros.(josephmichael.stonor@wsj.com)

0500 ET - Moderna's breakthrough on a vaccine for skin cancer puts the drug maker on course to have more than seven products on the market by 2027-28, Jefferies' Andrew Tsai writes. The company is diversifying its portfolio across respiratory and cancer treatments and AI-designed drugs, the analyst says. Revenues for 2026 could grow by up to 10% on 2025's $1.9 billion baseline, the analyst says, putting the company on track to break even in 2028. The trial success in Moderna's experimental mRNA-based cancer vaccine could help drive sales from 2027, Tsai says. Moderna shares fall back 12% premarket after the company more than doubled its market value Wednesday. (josephmichael.stonor@wsj.com)

0101 ET - Summerset's balance sheet is once again likely to dominate investor attention when the retirement-village operator reports 1H earnings on Aug. 27, says Forsyth Barr. It thinks net debt increased by NZ$105 million to NZ$2.07 billion. Still, analyst Will Twiss expects Summerset will reiterate guidance for net debt to remain broadly flat across 2H 2026 and FY 2027. "The result will also provide an opportunity for management to explain how measures already underway (including slowing its New Zealand build rate) and potential further actions (such as selling surplus land) could result in net debt being below consensus forecasts over the next two years," Forsyth Barr adds. (david.winning@wsj.com; @dwinningWSJ)

0053 ET - Ebos's FY 2026 result was notable partly because of what it didn't include. "With the lack of another EPS downgrade, we are hopeful this result has marked the end of Ebos's downgrade cycle and investor confidence can start to rebuild," says Forsyth Barr analyst Ben Crozier. Still, Ebos hasn't delivered a return to its historic growth rate of 5%. Forsyth Barr estimates Ebos's organic growth rate in FY 2026 was 2%, largely reflecting competitive headwinds in its Community Pharmacy business. Forsyth Barr retains a neutral call on Ebos.