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.

0258 GMT - An increase in the Australian National Aged Care Classification starting price of 2.55% is well short of the cost inflation faced by Regis Healthcare and other residential aged-care providers, says UBS. Wage inflation in the health sector was 3.8% in FY 2026, the bank says. "We expect a strong negative reaction from the sector, including the potential for greenfield projects to be put on hold by Regis and others given the reduced certainty of returns," says UBS. It cuts its target price on Regis to 5.95 Australian dollars a share from A$6.75 a share but retains a neutral rating. The stock is down 27% at A$4.31. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2359 GMT - Insilico offers one of the clearest tests of whether AI can expand pharma innovation beyond faster molecule design, Citi analysts. They start coverage with a buy/high-risk rating. Insilico has sustained preclinical candidate generation since 2021 across multiple therapeutic areas, supporting the repeatability of its AI-discovery process. The 15 partnerships with global firms it has disclosed have an aggregate headline contract value exceeding $11 billion and suggest it can convert hypotheses into development assets and commercial transactions at scale. Of the various clinical assets on track to validate Insilico's AI-driven drug design, Citi sees rentosertib--the first AIDD candidate in Phase III--as the biggest valuation catalyst. It sets a HK$85 target on the stock, which closed at HK$44.96. (fabiana.negrinochoa@wsj.com)

2329 GMT [Dow Jones]--The addition of a black box warning to the label of CSL's Injectafer is unlikely to have a big impact, according to Citi. The Food and Drug Administration approved revised labeling for the iron replacement medicine to warn of the risk of low levels of phosphate in the blood. "We do not think it will change much," says Citi. "Generics to Injectafer have become available over the last few weeks and, per FDA, are expected to update their labels also." Citi has a neutral rating and A$160/share target on CSL. The stock ended Wednesday at A$173.85. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2243 GMT [Dow Jones]--Jefferies's takeaway from Sonic Healthcare's annual result last month: FY27 hinges on three regions. Analyst David Stanton says the U.S. remains the key drag. Sonic has begun an operating review of its U.S. operations targeting organic growth and margin recovery off a low base. In the U.K., integration delays to a big new contract and labor costs are weighing on performance. Sonic's focus in the U.K. is shifting to organic growth and efficiencies, Jefferies says. "And Australian Radiology's margin dilution from greenfield investment should ease on cost discipline and productivity gains," it adds. Jefferies retains a hold call and A$21.00/share price target on Sonic, which ended Wednesday at A$18.73. (david.winning@wsj.com; @dwinningWSJ)

1021 GMT - EssilorLuxottica remains on a strong track after a solid first half, Equita SIM's Domenico Ghilotti says. The Franco-Italian eyewear group reported a robust performance in core business sales, despite weakness in its professional solutions division and a more limited contribution from smartglasses, the analyst writes in a research note. The company also provided indications on profitability that were more positive than expected, he adds. EssilorLuxottica's investment case has changed from extra revenue growth and margin dilution to more moderate growth but with greater operating leverage, Ghilotti says. Equita SIM confirms its buy recommendation on the stock. Shares are down 1% at 157.95 euros. (andrea.figueras@wsj.com)

0842 GMT - Novartis's new multiple sclerosis drug might stand apart from a rival product Roche Holding is developing due to its safety profile, Citi analysts say in a research note. Novartis reported no liver-safety signals in its late-stage studies for its remibrutinib drug in multiple sclerosis, while Roche had a case of significant risk of severe drug-induced liver injury in trials for its fenebrutinib drug, the analysts say. Citi estimates Novartis's drug could generate $3.2 billion in annual peak sales in multiple sclerosis. Whether that estimate is conservative will largely depend on the magnitude of the efficacy of Novartis's drug and the U.S. Food and Drug Administration's stance on the safety of Roche's medicine, the analysts say. Novartis's shares fall 0.75%, while Roche's rise 0.8%.