EU Healthcare: Q2 Recap; Positioning; H2 Ideas & Scenarios...

Research evidence excerpt

Marjan Daeipour - Specialist Sales - European Healthcare AC (44 20) 7134-1329

J.P. Morgan Securities plc

Europe Specialist Sales

JPMORGAN

10 August 2026

EU Healthcare: Q2 Recap; Positioning; H2 Ideas & Scenarios...

Marjan Daeipour

YTD European Healthcare is now in the green with SXDP +0.79% but has continued to lag meaningfully relative to the

overall European market (SXXP +11.7%) as, unsurprisingly, the main investor focus in Europe has been on Energy and,

similarly to the US, Tech . Most of the bounce in EU HC was in Q2 with net buying since May, driven by long buying and

short covering.

Within Healthcare, YTD winners include Ipsen, Bayer, Roche, Novartis and Merck KGaA in pharma and Demant/Sonova

in hearing aids. Main themes: i)positive earnings revisions for pharma; and, ii) increasing enthusiasm for a Hearing

market recovery plus new platform launches in H2 ‘26.

YTD HC losers have consisted mainly of LS (Sartorius) and medtech (Biomerieux, Coloplast, Essilor, Smith & Nephew).

Again, earnings revisions are the stand out factor driving the moves.

Spec view H2 Long ideas across EU Healthcare: Bayer (Crop CMD Sept 2; Fairness hearing on class action settlement on

Sept 14); Novartis (post Pela headlines); Galderma (scope for a further guidance raise at Q3); Sandoz into Sept 8 CMD;

and, Argenx into pIII myositis read out; and, Fresenius SE.

H2 short ideas: Smith & Nephew (scope for further guidance cut at Q3 & FY27 cons is too optimistic); Fresenius Med (H2

operating profit expected to decline while US same-store volume growth is expected to further deteriorate vs Q2; there

could also be a placing by FRE); and, Novo-Nordisk (FY27 consensus +3% CER topline could prove optimistic unless

Oral Wegovy ex US is a strong launch).

Positioning

There has been net buying since the start of May, driven by long buying and shorts covering. Positioning for SXDP is currently at

60th %-tile, compared to 36th %-tile at the start of May. This would indicate that investors are neutral in Healthcare with

positioning in Pharma (JJPEPHA) at 61st %-tile, compared to 28th %-tile at the start of May. See charts below.

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