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.

1036 ET - Merck's struggles with Gardasil aren't easing up. The drug maker disclosed 1Q sales of the treatment, which prevents cancers caused from the human papillomavirus, declined 41% to $1.33 billion, due primarily to lower demand in China. Gardasil's challenges were on display in the prior quarter when the company's guidance came up short of Wall Street's estimates and said it was pausing shipments to China of the treatment from February through at least the middle of the year. Gardasil is Merck's biggest-selling franchise behind blockbuster cancer therapy Keytruda, which saw sales increase 4% to $7.21 billion in the quarter. (denny.jacob@wsj.com; @pennedbyden)

1010 ET - Merck is signaling a confident vision with its largely maintained outlook for 2025. The drug developer continues to expect total sales between $64.1 billion and $65.6 billion, though it reduced its adjusted EPS range to between $8.82 and $8.97 to reflect an expected impact of 6 cents related to a license agreement. Critically, Merck said its outlook absorbs an estimated $200 million of additional costs for tariffs implemented so far. The unknown for Merck and companies at large will be what direction the Trump administration goes with tariffs amid its on-again, off-again approach. (denny.jacob@wsj.com; @pennedbyden)

0854 ET - Sanofi's pipeline presents a mixed picture as an experimental skin-disease treatment candidate is moving forward, while a mid-stage study of an anti-inflammatory drug didn't show the desired results, Barclays analysts say in a note. Sales of the French drugmaker's respiratory syncytial virus vaccine Beyfortus exceeded consensus estimates, driven by favorable phasing, the analysts say. Sales of anti-inflammatory drug Dupixent beat company-compiled consensus by 1%, alleviating investor concerns of a potential miss, they add. Shares are up 2% at 93.37 euros. (helena.smolak@wsj.com)

0837 ET - Bristol Myers Squibb reports better-than-expected 1Q earnings and raises its full-year revenue guidance and is watching the tariff situation closely. The company says "revisions include the estimated impact of current tariffs on U.S. products shipped to China, but do not account for any potential pharmaceutical sector tariffs," it says.(adriano.marchese@wsj.com)

0605 ET - Sanofi surprised with a sales beat of its skin and asthma drug Dupixent and a gross margin improvement given cost discipline, Stifel analysts say in a note. In addition, the French drugmaker's insulin portfolio is still benefiting from less competition in the U.S., where Danish obesity drug maker Novo Nordisk is prioritising its GLP-1 portfolio, they add. "[This was] a very good start to the year, offering upside to guidance, although Sanofi keeps it unchanged for the time being, which makes sense given uncertainties in the sector," they say. Shares fall 1% to 92.73 euros. (helena.smolak@wsj.com)

0558 ET - EssilorLuxottica reported a solid performance, confirming the company's resilient model in the current consumer environment,Stifel analysts Cedric Lecasble and Cedric Norest say in a note. The Franco-Italian eyewear group booked a 7.3% sales increase at constant exchange rates for the first quarter. The main uncertainty is related to tariffs, particularly those hitting Chinese-made frames imported to the U.S., the analysts say. The majority of the Ray-Ban frames sold in the U.S. were manufactured in China, including Ray-Ban Meta smart glasses, they add. The company is revisiting its supply-chain to mitigate the tariff turmoil. Shares fall 2.3%. (andrea.figueras@wsj.com)

0534 ET - Roche's pipeline and the outcome of its clinical trials are in focus after the company posted better-than-expected sales in the first quarter, Jefferies analysts in a note. Doubts around R&D productivity persist, but 2025 trial readouts could rebuild confidence, although many are seen as high-risk, the analysts say. Investors are now closely watching Roche's longer-term trend in R&D spend growth after it committed to maintain the figure stable in 2024 and this year, they say. The Swiss company's pharma sales beat offset the miss in diagnostics sales due to pricing reforms in China, they say. Shares are flat at 258.10 Swiss francs.(helena.smolak@wsj.com)

0535 ET - EssilorLuxottica's first-quarter sales demonstrate the company's resilience in the current macroeconomic environment, marked by U.S. tariffs and currency headwinds, Jefferies analysts write in a note. The Ray-Ban maker posted sales of 6.85 billion euros for the first three months, 7.3% higher on year at constant exchange rates. "The theoretical sensitivity of the eyewear industry to [macroeconomic] woes is offset by the need for vision correction solutions," the analysts say. However, a prolonged or more severe downturn could shift these dynamics, they add. Shares are down 2.6% at 250.50 euros. (andrea.figueras@wsj.com)

0524 ET - Roche maintaining its 2025 targets, despite the current uncertain political environment from the U.S., reassures investors, Vontobel analyst Stefan Schneider says in a note. The Swiss pharma giant's key growth drivers continue to grow well, whereas new blockbuster eye drug Vabysmo missed consensus' expectations, he says. Shares are flat at 257.90 Swiss francs. (helena.smolak@wsj.com)

0518 ET - Roche posted a solid first quarter, exceeding sales expectations and reaffirming its annual guidance despite the Trump administration tariff concerns, Barclays analysts say in a note. The Swiss pharma company's blockbuster drugs for multiple sclerosis Ocrevus and eye treatment Vabysmo missed Barclays' and market consensus, the analysts say. Investors will focus on diagnostics sales, hampered by pricing reforms in China, and Vabysmo's sales performance, which could slow down in the U.S. due to potential Medicare funding issues, they say. Shares fall 0.4% to 257.10 Swiss francs. (helena.smolak@wsj.com)

0514 ET - CVS Group's disposal of its crematorium division helps simplify the company's structure and sheds a business unit that provides a minor contribution to earnings, Davy Research analyst Colin Grant says. The analyst adds in a research note that the division can be considered non-core. "Overall, we view this disposal as opportunistic and attractive," Grant says. At a sale price of 42.4 million pounds, the disposal underscores the undervaluation of the rest of the company, the analyst says. The company expects to post a one-off 32.0 million pounds gain in its year-end account from the sale. CVS Group's shares trade 2.4% higher at 1,030 pence. (pierre.bertrand@wsj.com)

0411 ET - EssilorLuxottica's first-quarter update shows the Ray-Ban maker's resilience, but consensus estimates might still turn more cautious in light of uncertainty about the economy, tariffs and currency movements, Jefferies analysts say in a research note. The European eyecare company didn't provide formal guidance, but the gathering clouds might lead to lower expectations, Jefferies says. "Overall, we would not be surprised to see reported sales growth landing around 3%-4%, vs 7%-8% currently," the analysts say. Consensus estimates point to 2025 sales growth of 7.7% at constant currency, they add. In the first quarter, EssilorLuxottica reported sales growth of 7.3% at constant exchange rates, missing expectations of 8.1%, according to Jefferies. Shares fall 3.6%. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

April 24, 2025 12:20 ET (16:20 GMT)

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