Health Care Roundup: Market Talk

Dow Jones
09/24

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.

0721 GMT - 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)

0220 GMT - 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. (yingxian.wong@wsj.com)

1418 GMT - Roche Holding is expected to move quickly to file for an accelerated approval for its sefaxersen drug candidate, a direct competitor to Novartis's Fabhalta, RBC Capital Markets analysts say. The Swiss drugmaker reported positive interim results for a late-stage study of sefaxersen in autoimmune disease IgA nephropathy and the company had previously said it hoped the data would lead to an accelerated approval, consistent with the Fabhalta precedent, RBC says. "We think the muted reaction in [Roche] shares downplays the impact of a positive early interim readout from this study in an indication where we model [1.5 billion Swiss francs] in 2034 sales," the analysts say in a research note. Nevertheless, the study results reduce the risk on that estimate and bode well for the Swiss drugmaker's pipeline, they add. Shares rise 0.8%. (adria.calatayud@wsj.com)

1244 GMT - Roche Holding is showing signs of improving its research-and-development productivity, Berenberg analysts say in a research note. The returns on the Swiss drugmaker's research-and-development investments this year are on track to reach 10%, above the 9% bar that is the average of both the sector as a whole and the company's own historic track record, Berenberg says, citing its own analysis. "Roche's valuation reflects this improved pipeline outlook," the analysts say. Shares fall 0.5%.

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