European Healthcare Credit: 2026 Mid-Year Sector Weigh-In

Research evidence excerpt

European Healthcare Credit: 2026 Mid-Year Sector Weigh-In

A less likely

more aggressive if valuations are growth and dividends; will always inorganic); strong balance sheet (couple of hundred mns), but has a lot to

reduced) explore strategic deals of any size, but supportive. Tuck-in deals more likely) do post-separation and has a lot of BAX (continues to target 3x leverage by

sees modest tuck-in deals as the opportunities organically/in licensing, no YE, after which it can start making

LLY (priority is to expand investments in preferred route over the near-term) IPNFP (‘actively screening’) big M&A for now) inorganic investments and shareholder

BD) returns)

MRKGR (larger Life Sciences PFE (balanced between reinvestment, ZBH (prioritising shareholder returns

MCK (investment in growth, both acquisitions are BD priority but seeks to shareholder returns, acquisitions (c. over M&A given fairly significant

organic and inorganic) intensify external investments in $7bn BD capacity)) acquisitions in past couple of years)

Healthcare following pipeline setbacks).

MRK (investment (both organic and PHARGR (opportunistic to expand Could turn more acquisitive inorganic); Keytruda concentration; NOVOB (internal investments are first position through organic growth and

previously said $10-15bn deals are at priority but continues to build pipeline; M&A within disciplined financial policy) after a period of deleveraging

the outer bound of the sweet spot for flexibility for larger deals if attractive)

deal size) ROSW (plans to continue M&A as it has FMEGR (deleveraging has been the top

SANFP (Saw up to €15bn in firepower in in the last couple of years, but not priority, supported by non-core

Preference for bolt-ons 2026 under the AA rating, could go up to dependent on it) disposals)