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.

0310 ET - Sanofi needs mergers and acquisitions to refill its late-stage drug pipeline, and its recently expanded collaboration with Regeneron Pharmaceuticals means it can shift its focus to dealmaking, Berenberg analysts say in a research note. "Sanofi can now move forward to deploy its [30 billion to 40 billion euros] of balance sheet capacity on business development," the analysts say. Since the drug candidates Sanofi and Regeneron will jointly develop are at an early stage, the French drugmaker has limited pivotal study results on the horizon, Berenberg says. Data on a late-stage trial for frexalimab in multiple sclerosis and a midstage for brivekimig in skin condition hidradenitis suppurativa due in the second half of 2027 are the next updates Berenberg will be watching, the analysts say. Sanofi shares rise 1%. (adria.calatayud@wsj.com)

0229 ET - News that Vaxcyte's experimental pneumonia vaccine held up against two approved shots in a late-stage clinical trial should open a new revenue stream for Switzerland's Lonza Group starting in a couple of years, RBC Capital Markets' Charles Weston says in a research note. "Lonza is fully embedded in Vaxcyte's manufacturing supply chain through multiple overlapping agreements," the analyst says. Vaxcyte's vaccine is projected to reach $4 billion in annual peak sales, though it is unlikely to launch before 2028, RBC says. At its peak, this could translate into $400 million to $550 million in revenue for Lonza, the analyst estimates. (adria.calatayud@wsj.com)

2241 ET - Shionogi's planned $2 billion acquisition of U.S. rare disease drug developer IntraBio is likely to offer readily achievable synergies and fit the Japanese drugmaker's growth strategy, Jefferies analysts say in a note. Shionogi announced the deal on Monday. The U.S. bank says there were some concerns about what kind of M&A Shionogi might be pursuing. The deal removes the overhang stemming from M&A uncertainty and should support the share price. In April, Shionogi completed the acquisition of the Radicava amyotrophic lateral sclerosis drug business, giving it a U.S. rare disease sales force, the bank says. Jefferies has a buy rating and a target price of 3,800 yen on Shionogi. Shares are 1.9% higher at Y2,712.5. (kosaku.narioka@wsj.com; @kosakunarioka)

2206 ET - Thai healthcare companies' earnings are unlikely to be largely weighed by recent floods in some areas, says Maybank Securities' Nontapat Sahakitpinyo in a note. Share prices of Hospital operators in the country declined 1%-6% since Sept. 25 on concerns that floods would affect operations, but the companies didn't face asset damage or internal flooding, he says, citing its own checks with the hospitals. The analyst expects a strong flu season to support the sector's core profit, which is estimated to rise 8% on year in 3Q. Maybank's top sector picks are Bumrungrad Hospital and Chularat Hospital, and it has buy ratings on both companies. (megan.cheah@wsj.com)

1749 ET - CSL's deal with Alentis Therapeutics to jointly develop and promote a rare kidney and liver disease treatment is emblematic of its current research and development philosophy, suggests Jefferies. That philosophy focuses on development by buying assets into its pipeline, analyst David Stanton says. The treatment, known as lixudebart, is being evaluated in a Phase 2 trial in patients with ANCA-associated vasculitis and rapidly progressive glomerulonephritis. Jefferies estimates a total addressable market for this illness in the U.S. of $900 million-$1.6 billion annually, adding that is a conservative assessment. "In the longer term, CSL has stated that the business is looking to re-energize its research function," Jefferies says, of CSL's approach. "This will likely take time."