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.

0801 GMT - Novartis's latest clinical-trial setback raises questions about the Swiss drugmaker's acquisition track record and leaves a sales hole to be plugged in the early 2030s, Deutsche Bank's Emmanuel Papadakis says in a research note. News that drug candidate del-desiran missed the target of a late-stage study in rare neuromuscular disorder known as myotonic dystrophy type 1 came shortly after cardiovascular drug pelacarsen failed another trial. Del-desiran was the first proof point for the recent $12 billion Avidity acquisition, the analyst says. Moreover, it leaves a hole to be addressed in the early 2030s when big drugs like Cosentyx, Kisqali and Kesimpta lose patent protection, he adds. Deutsche Bank cuts its recommendation on Novartis stock to hold from buy and trims its target price to 120 Swiss francs from 140 francs. Shares fall 0.8% to 110.86 francs. (adria.calatayud@wsj.com)

0258 GMT - Kyowa Kirin's latest clinical data for an ophthalmology drug candidate is disappointing, Jefferies analysts say in a note. Phase 2 clinical results for KHK4951 eye drops materially weaken one of Kyowa Kirin's important pipeline opportunities, the U.S. bank says. Kyowa Kirin said Tuesday the study failed to meet its primary objective. Jefferies cuts its estimated probability of success to 5% from 25% and reduces peak sales assumptions for the drug candidate by 50%. The bank lowers its rating on Kyowa Kirin to hold from buy and its target price to 2,600 yen from Y2,800. Shares are 4.7% lower at Y2,251.0. (kosaku.narioka@wsj.com; @kosakunarioka)

2239 GMT - Echo IQ's shares are likely to be sold off today after the U.S. Food and Drug Administration didn't give clearance to its EchoSolv HF tool for detecting heart failure, says Petra Capital. The FDA issued a Not Substantially Equivalent determination. "This is a significant and relatively uncommon setback, although not necessarily terminal," analyst Tanushree Jain says. There are examples of companies ultimately gaining FDA clearance after addressing concerns. Still, it takes extended time and cost and carries elevated risk. "In Echo IQ's case we do not believe it will be a quick or a simple resolution either," says Petra Capital, downgrading the stock to "sell," from "hold." Echo IQ ended Tuesday at A$1.28.