Australian Healthcare: Healthcare Daily: News, research & industry feedback

Research evidence excerpt

Australian Healthcare: Healthcare Daily: News, research & industry feedback

Global Research

23 July 2026ab

Australian Healthcare Equities

AustraliaHealthcare Daily: News, research & industry

feedback Healthcare

David Low

Analyst

david.low@ubs.com

Stocks covered: SHL, CSL, REG +61-2-9324 2843

James Meares

Competitor results Analyst

james.meares@ubs.com

+61-29-324 3575SHL - Medicover 2Q 2026 Results (Medicover PR, 21-Jul)

Grace Allen

German lab revenues up 4.4% for the half, boosted by fee-for-service Associate Analyst

work. Germany lab revenues lifted 6.6% in June quarter and by 4.4% for the half. grace-za.allen@ubs.com

The growth was attributed to solid momentum in FFS revenue driven by strong +61-2-9324 2000

special immunology.

FFS growth attributed to changing consumer behaviour. The cuts to

EBM (statutory) rates have led to changes in behaviour with consumers

increasingly accepting of out-of-pocket charges.

Pricing stable with test mix supportive. Medicover report having a broad array

of tests including "life-style" tests.

UBS view: Our forecasts for Sonic's Germany lab operations assume 4% organic

growth which is consistent with Medicover's results in Germany. We presume Sonic is

also benefitting from the supportive FFS trends reported by Medicover. No additional

commentary was provided on the status of the GOA (private health) reforms.

News and press releases

CSL - "Trump says generic drugs to face no US tariffs for 2 years, then 100% and 200%

tariffs later" (Reuters, 21-Jul)

CSL - "US Pharmaceuticals "Generics tariff headlines: Our thoughts on exposure..."

(UBS Analyst Ashwani Verma, 21-Jul)

UBS View: We echo our US Team's view that the probability of a high tariff on US

generics is low as generics account for 90%+ of the prescriptions and 70% is imported