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.

0508 ET - Investors are dialing up their bets on the life-sciences industry as AI-related demand emerges as a growth driver for lab-tools makers and other companies in the drug supply chain, RBC Capital Markets analysts say. Recent comments from company executives suggest the AI demand is moving from theoretical to evidenced, according to RBC. Traditional pharma companies and AI-native drug discovery startups are investing at a scale that will require a jump in biological data generation, the analysts say. "The demand signal differs by position in the value chain: research and labs now, with instruments first and consumables a few quarters after, preclinical [contract research organizations] picking up volume as new assets progress faster through the research phase, and then [contract drug manufacturing organizations] and bioprocessing companies last," they add. (adria.calatayud@wsj.com)

0444 ET - AstraZeneca is hedging against a key threat to its antibody drug conjugate portfolio through its collaboration with Summit Therapeutics, Citi analysts say in a research note. The agreement has limited immediate impact, but it is a sensible move by the U.K. drugmaker in case medicines like Summit's ivonescimab--known as PD-1/VEGF--become an alternative backbone therapy to existing treatments called PD-1 and PD-L1, the analysts say. AstraZeneca is testing its Datroway antibody drug conjugate in combination with its PD-L1 medicine Imfinzi for lung cancer in a late-stage clinical trial. Moreover, AstraZeneca's stake in Summit gives it exposure to PD-1/VEGF in the event the drug class takes off, the analysts add. AstraZeneca shares rise 0.1%. (adria.calatayud@wsj.com)

0349 ET - Fresenius investors might have overreacted to news that the FDA sent a warning letter to the German healthcare group's Kabi pharmaceutical business alerting it to what the regulator called serious violations at a U.S. facility, Citi analysts say in a research note. Fresenius Kabi said in response that no patient-safety concerns had been identified. While the letter is negative for sentiment, a warning letter doesn't come as a big surprise given that Fresenius had already flagged potential FDA action at its last earnings call, and the company expects no material impact on production or results, the analysts say. "The warning on withholding of new drug approvals until violations are fully resolved is standard warning letter language," they add. Fresenius shares rise 1.8%, after closing 4.9% lower on Tuesday. (adria.calatayud@wsj.com)

0052 ET - CSL still generates caution at Macquarie despite the stock's recent rerate. Analysts at the investment bank keep a neutral rating on the Australia-based pharmaceutical company, observing that a 58% share-price rise over three months came despite earnings downgrades. They think that near-term catalysts will probably support the current rerating, but tell clients in a note that they are cautious on the medium-term outlook due to uncertainty over the impact on demand of complement-inhibitor therapies, albumin collections, and the process to appoint a new permanent CEO. Macquarie raises its target price on the stock 31% to 174.00 Australian dollars. Shares are up 1.4% at A$184.25. (stuart.condie@wsj.com)

2211 ET - IHH Healthcare's recent share price weakness is likely an enhanced buying opportunity, with Fortis-related litigation concerns expected to have limited impact on operations, says Citi analyst Megat Fais in a note. IHH says it isn't subject to financial claims in the dispute involving Daiichi Sankyo and former Fortis promoters. IHH's India plans remain on track to reach 10,000 beds target by 2030-2031, while Singapore's recovery is expected to continue, he reckons. Malaysia should see growth from selective bed additions and medical tourism, while Turkey's strong demand and international patient flows are expected to continue, he adds. Citi keeps a buy rating and its target price at 10.40 ringgit. Shares are 0.1% higher at 7.88 ringgit.