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.

1005 ET - Regenerative stem cell-based therapies are poised for a breakthrough as the potential for approvals looks set to thrive in a more favorable regulatory environment, says Maxim Group's Jason McCarthy in a research note. The analyst says such therapies came onto the scene in the mid-2010s and contracted shortly afterwards, but can now step back into the limelight. McCarthy notes that two companies that have benefited from recent changes are Mesoblast and Capricor Therapeutics, with valuations of both rising significantly this year. He adds that RFK Jr., Trump's pick to run the Department of Health and Human Services, seems enthusiastic about stem cell research despite criticizing vaccines and fluoride. ([email protected]; @pennedbyden)

0350 ET - Lonza's decision to exit the capsules and health-ingredients business is a positive move, given the risks the division posed to growth, margins and returns over the past two years, Stifel analysts Dylan Van Haaften and Ed Hall say. The Swiss life-sciences company unveiled a new organizational structure to concentrate on its core CDMO business including drug development. "Perhaps we should view these changes with the new CEO at the helm, setting a more conservative base," they write in a note. Shares are 6.6% higher at 557 Swiss francs. ([email protected])

0302 ET - Lonza's intention to exit its capsules and health-ingredients business doesn't come as a surprise, as many investors had questioned whether this division would still be core going forward, Jefferies analysts James Vane-Tempest and Christopher Richardson write in a note. The Swiss life-sciences company outlined a new organizational structure and said it would focus on its core business including drug development. "Most of our investor discussions had highlighted the potential positive outcome of such a move to focus on the core biologics business," the analysts say. Some were concerned that the move would increase volatility and reduce free cash flow generation, the analysts add. Reinvestment priorities will be essential, especially as Lonza aims for a more balanced organic and inorganic growth strategy, Jefferies says.([email protected])

0148 ET - Max Healthcare Institute looks well-placed for continued profitability and growth, Axis Securities analysts say in a research report. The brokerage initiates coverage of the stock with a buy rating and target price of INR1,315.00. The Indian hospital chain operator plans to add 3,000 beds to its network over next three years, mainly via brownfield expansions, the analysts note. Also, the company focuses on value investing and has recently acquired a hospital chain from Jaypee Healthcare to strategically increase footfall traffic in India's Noida region, the analysts add. The brokerage forecasts Max Healthcare's Ebitda growth at 31% in FY 2025 and 24% in FY 2026. Shares are 2.0% higher at INR1,156.10. ([email protected])

0123 ET - Fortis Healthcare is poised to significantly boost profitability, Axis Securities analysts say in a research report as they initiate coverage of the stock with a buy rating and a target price of INR860.00. Drivers are a likely improvement in occupancies at its hospitals, increasing average revenue per occupied bed, and strategic brownfield expansions on major facilities, the analysts say. The Indian healthcare services provider plans to add 2,000 beds via brownfield expansion and stabilize occupancy rates at 68% with an average revenue per occupied bed of INR70,000 by FY 2027. Its profit-after-tax is projected to more than double to INR14.21 billion by FY 2027 from FY 2024, the brokerage adds. Shares are 0.8% higher at INR719.00. ([email protected])

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