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.

1019 ET - Sterling shows little reaction after U.K. Prime Minister Andy Burnham announced plans to reform pensions in a speech Tuesday, as widely expected. From 2030 the government will adjust the triple lock on pensions, which ensures state pensions rise in line with average earnings, inflation or 2.5%, whichever is highest. Instead pensions will rise every year in line with inflation, or 2.5%. Burnham scrapped the earnings element, saying state pensions would hold their value "relative to earnings over time." He also pledged to build a national care service, create a public body to invest in the electricity grid and strengthen control of water companies. Sterling falls 0.2% to $1.3222 and is flat at 0.8573 per euro, both little changed from levels before the speech. (renae.dyer@wsj.com)

0950 ET - Roche Holding provided an encouraging update on its plans for a new breast-cancer drug, which together with other upcoming product launches underscore the company's confidence in its growth through the end of the decade, Citi analysts say. The Swiss drugmaker signaled it is comfortable with 2027 consensus estimates for sales of its breast-cancer drug, giredestrant, of 600 million Swiss francs, Citi says in a research note. Roche plans a patient-assistance program, offering the drug for free to some patients initially to reduce access barriers with the hope of seeing a "hockey-stick" launch trajectory, the analysts say. Citi expects the sales impact to be covered by 2028, and reiterates its forecast of annual peak sales of $14.5 billion. Shares fall 1.2%. (adria.calatayud@wsj.com)

0936 ET - Roche Holding's clinical-trial success rate has improved and research-and-development cycles shortened since the company introduced a more stringent approach to its drug pipeline after a series of failed studies in 2022, Vontobel's Stefan Schneider says. The Swiss drugmaker used an event with investors on Monday to showcase the progress it made over the past year, the analyst says in a research note. Even if Roche disclosed it is dropping development of muscle-sparing drug emugrobart for obesity, ten positive late-stage study results over the past year reassure about its future growth outlook, the analyst adds. "Today, the company has an overall smaller number of pipeline projects ongoing, but they are more carefully selected when being pushed through the clinic to the market," Vontobel says. Shares fall 1.4%. (adria.calatayud@wsj.com)

0855 ET - Roche Holding struck an upbeat tone on its drug pipeline, but didn't deliver the guidance upgrade some expected, as it gave investors an update on its pharma business, RBC Capital Markets analysts say in a research note. The Swiss pharma group said Monday that it plans new studies for its breast-cancer drug candidate giredestrant across different treatment lines, combinations and settings of the disease. "While the breadth of the giredestrant program and broader pipeline provided encouragement around Roche's longer-term growth potential, the lack of midterm guidance update meant the event unlikely provided the incremental upside catalyst some investors had been hoping for," they add. Shares fall 1.2%. (adria.calatayud@wsj.com)

0835 ET - Roche Holding shares trade at a premium to those of peers, which will be difficult to justify if the launches of its next drugs don't deliver on expectations, Jefferies analysts say in a research note. There were no big surprises in the Swiss drugmaker's update on its pharma business held Monday and 2027 is shaping up to be a year more focused on regulatory filings than on clinical-trial results, the analysts say. "What is now perhaps even clearer is that 2027 giredestrant and fenebrutinib launches must deliver, if approved, as key clinical catalysts don't emerge until closer to 2028," Jefferies says, referring to Roche's new drugs for breast cancer and multiple sclerosis, respectively. Shares fall 1.2%. (adria.calatayud@wsj.com)

0822 ET - Roche Holding's research and early development is becoming more productive thanks to the integration of AI into its workflows, but it is too soon to know if the technology improves a drug candidate's chances in a clinical trial, J.P. Morgan analysts say in a research note. The Swiss drugmaker said it is using AI to speed up the process of discovering new medicines, and ultimately aims to improve the quality of those that it moves to the development phase. "While they are making significant progress enhancing the research process, whether this will lead to enhanced probability of success will only become clear as the molecules go through clinical testing over the coming 3-5 years," the analysts say. Shares fall 1.4%. (adria.calatayud@wsj.com)

0812 ET - Roche Holding's confidence in its portfolio of medicines for obesity and diabetes seems to be growing as the Swiss drugmaker seeks an expansion into broader cardiovascular indications, UBS analysts say in a research note. "Management continues to expect a highly segmented obesity market, with orals a critical pillar both as monotherapy and in combinations, and sees oral therapies expanding the market," the analysts say. Roche believes the glucose-control performance of its enicepatide drug candidate in a recent midstage trial warrants a head-to-head comparison study against Eli Lilly's Mounjaro in diabetes, with no decision yet on a similar study in obesity, they add. Moreover, the company plans to test enicepatide for cardiac conditions, while moving two other experimental obesity drugs to late-stage studies. Shares fall 1.1%. (adria.calatayud@wsj.com)

0634 ET - AstraZeneca's deal with Summit Therapeutics looks like a strategically smart move for the U.K. drugmaker, which adds combination options for its portfolio while keeping risk exposure low, analysts at Jefferies say in a research note. AstraZeneca is taking a 12% stake in Summit for $2 billion and entering into a research collaboration with the Miami-based company. This gives AstraZeneca's oncology portfolio a clear route to combinations with Summit's experimental drug ivonescimab, the analysts say. "We argue that the deal, which provides development optionality without the risk of a larger acquisition before key [clinical-trial] results, should be well received by investors, ensuring AZN has a seat at the table should the mechanism become globally validated," they add. AstraZeneca shares rise 1.5%. In U.S. premarket trading, Summit jumps 20%. (adria.calatayud@wsj.com)

0610 ET - AstraZeneca's $2 billion investment in Summit Therapeutics works for both companies, UBS analysts say in a research note. For Summit, this is potentially a best-case scenario that provides external validation of its lead drug candidate ivonescimab and gives it funding to go through pivotal study results, the analysts say. The deal also brings in a strategic partner to develop Summit's medicine while allowing the company to retain future economic rights, they add. Meanwhile, AstraZeneca gains exposure to the so-called PD-1×VEGF class of cancer drugs without the cash drain of an outright acquisition, UBS says. AstraZeneca shares rise 1.5%, Summit jumps 22% in U.S. premarket trading. (adria.calatayud@wsj.com)

0514 ET - AstraZeneca's investment in Summit Therapeutics gives the U.K. drugmaker skin in the game of an emerging class of cancer drugs, UBS analysts say in a research note. Miami-based Summit is developing a cancer drug called ivonescimab that blocks two proteins known as PD-1 and VEGF. Evidence is emerging that this drug class might be superior to Merck's blockbuster medicine Keytruda and recent data also point to potential for combinations with antibody-drug conjugates, according to UBS. AstraZeneca has an extensive antibody-drug-conjugate portfolio and the Summit deal allows it to generate data across multiple tumor types, the analysts say. "If the PD-1/VEGF class does become the new standard of care in various cancers, it will be important to have such combination data," they add. AstraZeneca shares rise 1.9%. (adria.calatayud@wsj.com)

0425 ET - EssilorLuxottica should keep its leading position in smart eyewear, helped by the recent portfolio expansion, Jefferies analysts say in a note. The adoption of glasses featuring artificial intelligence is cooling a bit, but remains strong, they say. Despite competition in the category, Meta and EssilorLuxottica should be able to maintain the lion's share of the booming market due to customer-appealing brands and unique distribution capabilities, among other factors, they say. The stock jumps 1.5%. (andrea.figueras@wsj.com)

0312 ET - Eurofins Scientific's 2027 target of an improvement in profitability seems firmly within reach, but this is no longer enough as the debate among investors shifts back to growth, Bernstein analysts say in a research note. The French lab-testing company has historically delivered sustainable organic sales growth above 6%, but its growth engine now appears structurally weaker, the analysts say. Eurofins is heavily exposed to Europe, where clinical and research-and-development activity remains weak, and this might explain why organic growth in its biopharma business has remained subdued for the past two years, they add. Bernstein cuts its recommendation on Eurofins stock to market perform from outperform, and trims its target price to 73.90 euros from 77.20 euros. Shares fall 2.1% to 77.08 euros.