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.

0818 ET - Merck's $53-a-share deal to buy Terns Pharmaceuticals doesn't fully capture the potential of the biotech's promising leukemia treatment, analysts at William Blair say. In a note, William Blair says TERN-701 is well positioned to disrupt the treatment paradigm for the blood cancer chronic myeloid leukemia and to challenge the dominance of Novartis' Scemblix franchise. The analysts say they believe another bidder could emerge with a more attractive offer for Terns, and they reiterate their outperform rating on Terns shares. Terns up 5.4% premarket to $52.71. (colin.kellaher@wsj.com)

0751 ET - Merck's nearly $6 billion deal for cancer biotech Terns Pharmaceuticals could give it another cancer drug blockbuster as it prepares for its powerhouse drug Keytruda to lose patent protection. Terns develops pills to treat cancer, as well as obesity and metabolic liver diseases, and its highest-potential drug is a pill to treat a blood cancer known as chronic myeloid leukemia. The drug has delivered encouraging study results and Truist analysts estimate it could bring as much as $2.3 billion in peak adjusted annual sales. Keytruda will lose protection of its main patent in 2028. The immunotherapy notched sales of around $31.7 billion last year. (nicholas.miller@wsj.com)

0241 ET - HSBC Global Research sees Chinese healthcare companies under its coverage facing limited impact from the Mideast crisis. Companies under coverage derive less than 2%-5% of revenue from the region, and their supply-chain exposure there is also limited, HSBC analysts say in a note. Instead, potentially higher Fed rates, inflationary pressure, and elevated market volatility are likely to weigh on sector sentiment and funding conditions, particularly for biotech and contract research organizations, HSBC says. The bank expects resilient demand and cash flow across the sector, supported by stimulus safeguarding local supply chains and acceleration of import substitution, to partially offset prolonged volatility risks. (jason.chau@wsj.com)

2147 ET - The top 30 constituents of Malaysia's benchmark Kuala Lumpur Composite Index are likely to remain unchanged at the upcoming June review, MBSB Research analyst Royce Tan Seng Hooi says in a note. Sunway Healthcare has entered the index, replacing QL Resources following its recent listing. As a spin-off from index constituent Sunway, Sunway Healthcare qualified for immediate inclusion as its market capitalization exceeded that of the smallest existing KLCI constituent, he notes. Mr D.I.Y. Group (M) faces the highest risk of removal, based on current market capitalization, while United Plantations could be a potential replacement, he says. IOI Corp. may also be at risk if it fails liquidity requirements, he adds. (yingxian.wong@wsj.com)

2106 ET - Q&M Dental Group could double its earnings after it completes the acquisition of more than 70 dental clinics in Australia, Singapore and Thailand, says Phillip Securities' Paul Chew in a note. The acquisitions are valued around an estimated S$272 million, he notes. The long tenure of the share moratorium and service agreement tied to one of the deals could help Q&M to scale up a new franchise and platform, the head of research adds. These deals could help to boost the Singapore-listed dental group's EPS by around 80%, he says. Phillip Securities raises its target price to S$0.71 from S$0.545 and retains its buy rating. Shares last closed at S$0.53. (megan.cheah@wsj.com)

2018 ET - Cochlear's bulls at UBS reassure investors that any impact on demand from gene therapies for congenital hearing loss remains many years away. Analysts at the investment bank acknowledge that therapy efficacy data is encouraging but stress that there will be no near-term material impact on the Australia-listed hearing-implant maker. For now, they tell clients in a note that they expect Cochlear's new Nexa implant to boost the company's market share. A recent sell-off in the stock is just an opportunity, they add. UBS keeps a buy rating and A$302.00 target price on the stock, which is up 1.5% at A$163.77. (stuart.condie@wsj.com)

1239 ET - Peloton Interactive has a number of structural tailwinds as the fitness industry continues to grow, UBS analysts say in a note. Younger generations are allocating more of their spending on health and wellness, and the rise of GLP-1 drugs is also playing a factor, the analysts say. As the drugs become more affordable and more people use them, they have to urgently incorporate cardio and strength exercises in their daily routines to prevent loss of muscle mass and bone density, the analysts say. Such shifts align well with Peloton's business, given it sells workout equipment and facilitates streaming access to fitness classes. The fitness industry will likely continue to capitalize on consumers' behavioral shifts to prioritize health, the analysts say. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 12:20 ET (16:20 GMT)

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