Reuters Health News Summary

AstraZeneca shares plummeted 9% after reports of a potential $400 billion merger with Bristol Myers Squibb, while Michigan reported its first US deaths in a cyclosporiasis outbreak.

Following is a summary of current health news briefs.

AstraZeneca investors balk at prospect of $400 billion Bristol Myers pharma deal

AstraZeneca investors punished the pharmaceutical firm on Monday over reports of merger talks with U.S. rival Bristol Myers Squibb that could make one of the world's biggest drugmakers with a combined value of nearly $400 billion. Shares in AstraZeneca closed down some 9%, the biggest drop since 2020, ​as investors and analysts said Britain's biggest drugmaker had little need for a transformative acquisition despite potential cost benefits. Bristol Myers shares slipped less than 1% in early trading.

Michigan reports first US deaths in cyclosporiasis outbreak

A cyclosporiasis outbreak that has grown ​into the largest on record in the United States has caused its first known deaths, two people in Michigan, the state's health department said on Monday. Cyclosporiasis, an intestinal ‌illness caused by the Cyclospora ​parasite, is generally not life-threatening. Michigan, citing medical records, said the two who died had significant underlying health conditions that may have been affected by the disease and related dehydration.

Australia confirms first mass death of seabirds from H5N1 bird flu

Australia warned on Monday against the risk of a wider spread of H5N1 bird flu after its first mass mortality episode among seabirds killed about 50 greater crested terns off the coast south of Adelaide. However, there is no evidence yet of the virus on Australia's farms, many of which have locked down to safeguard poultry flocks since it was first detected in June.

Sandoz agrees $450 million settlement with 43 US states over antitrust claims

Swiss generic drugmaker Sandoz said on Monday that it has entered into a $450 million settlement agreement with 43 U.S. states and territories to resolve litigations concerning alleged anti-competitive conduct in the ‌U.S. market for generic medicines. Under the agreement, the firm's U.S subsidiary is to pay a total of $400 million over seven years starting from 2027, with an additional payment of approximately $50 million to states that settled earlier, Sandoz said.

Supernus, Indivior merge to strengthen neuroscience drug portfolio

Supernus Pharmaceuticals and Indivior Pharmaceuticals said on Monday they had agreed to an all-stock merger that would create a company with about $2.2 billion in annual revenue and a portfolio of medicines for neurological, psychiatric and addiction-related conditions. Shares of Supernus were up over 20% and Indivior shares were nearly 10% higher in premarket trading.

Afghan child malnutrition surges as aid cuts force clinics to turn families away, WFP says

Child malnutrition in Afghanistan has reached critical levels and aid shortages are forcing health workers to turn away millions of children and mothers — six in seven of those in need — the U.N. World Food Programme said on Tuesday. Child wasting, the deadliest form of malnutrition, has reached critical levels in a third of Afghanistan's provinces, while the number of children being admitted to health centres is rising sharply, WFP's country director in Afghanistan, John Aylieff, told reporters in Geneva.

Curium deepens radiopharma heft with up to $8 billion deal for Lantheus

Radiopharmaceutical company Curium ‌has agreed to buy peer Lantheus Holdings in a deal worth up to $8 billion, as the private equity-backed firm looks to expand its footprint in the fast-growing sector. Radiopharmaceuticals, which use radioactive compounds to diagnose and treat diseases such as cancer, have become one of the hottest areas in healthcare dealmaking.

A single US measles outbreak can cost millions of dollars, study estimates

The overall cost of containing a 2025 measles outbreak in New Mexico was nearly $5.4 million, a new study estimates. The figure includes expenses for medical care, public health services and lost productivity, ‌not just for the 57 adult patients and for caregivers of the 43 infected children but also for 205 exposed and quarantined contacts and 133 public health responders.

Kimberly-Clark cuts annual forecasts as China quality claims hurt diaper sales

Kimberly-Clark cut its annual sales and profit forecasts on Tuesday, citing a significant hit to second-quarter sales in China that stemmed from what it said were false viral claims about the quality of some of its diaper brands. The Kleenex maker said claims circulating on Chinese social media that its Huggies diapers contained formamide, a substance banned in multiple countries, weighed on demand despite independent testing by a government-certified third party confirming their quality and safety.

Pathos AI to license experimental breast cancer drug from China's Jiangsu Alphamab Biopharmaceutical

New York City-based Pathos AI will pay $125 million upfront to a subsidiary of Alphamab Oncology for rights to an experimental drug for a type of breast cancer, the Chinese oncology specialist said Tuesday, as it competes with bigger rivals. Triple-negative breast cancer, or TNBC, is an aggressive type of invasive breast cancer that tends to grow and spread faster and has fewer treatment options. It accounts for about 10% to 15% of all breast cancers.

California's highest court rules for Gilead in 'duty to innovate' case

California's highest court on Monday ruled in favor of Gilead Sciences in a closely watched case addressing whether manufacturers of drugs that are considered safe must try developing drugs that could be safer. In a ⁠6-1 decision, the California Supreme Court ordered ​the dismissal of negligence claims against Gilead by an estimated 24,000 patients using an HIV drug it produced, over its decision more than 20 years ⁠ago to stop developing an alternative drug that had fewer side effects.

Vertex raises annual revenue forecast on cystic fibrosis drugs strength

Vertex Pharmaceuticals on Monday raised the upper end of its annual revenue forecast, banking on robust demand for its cystic fibrosis treatments. The company expects its annual revenue to be between $13.1 billion and $13.2 billion, compared with $12.95 billion to $13.1 billion previously. Analysts on average expect 2026 revenue of $13.07 billion, according to data compiled by LSEG.

KKR to take medical-equipment maker Integer Holdings private in $5.7 billion deal

KKR will take medical-device manufacturer Integer Holdings private in an all-cash deal valued at about $5.7 billion, expanding its healthcare portfolio with the acquisition of a key supplier to the medtech industry. Shares of Plano, Texas-based Integer Holdings ⁠rose 2.6% in early trading.

BioNTech lowers 2026 sales outlook as COVID vaccine demand softens

German vaccine maker BioNTech significantly lowered its full year sales outlook range on Tuesday due to softer-than-expected COVID-19 vaccine demand, as second quarter revenue fell by more than half and its net loss more than doubled. Shares were down 5.5% at 1106 GMT following the results.

Merck posts better-than-expected second-quarter results on Keytruda strength

Merck reported higher-than-expected second-quarter sales on Tuesday and raised its full-year revenue forecast on the strength of its top-selling cancer treatment Keytruda. The U.S. drugmaker reported quarterly revenue of $16.61 billion, up 5% from a year earlier and above analysts' average estimate of $16.36 billion, according to ​LSEG data.

Rhythm Pharma's obesity drug shows promise for brain tumor-related weight condition

Rhythm Pharmaceuticals said on Tuesday its experimental weekly injectable drug helped reduce body weight in patients with a rare form of obesity caused by damage to the brain, according to preliminary data from an ongoing mid-stage study. Shares of the Boston-based company were up 5% in premarket trading.

Eli Lilly to offer early access to next-gen obesity drug to some patients

Eli Lilly said on Monday it would allow a limited number of patients to have ⁠early access to its experimental obesity drug, retatrutide, before its U.S. FDA approval. "For a limited number of patients who meet specific medical criteria and cannot enroll in a clinical trial, we believe it is medically appropriate to make authentic retatrutide available before FDA approval, consistent with FDA's guidance," a company spokesperson said.

India pharma sector to miss 2030 sales target amid tariff and shipping woes, trade body says

India's pharmaceutical industry is likely to miss its sales target for the end of the decade as U.S. tariff uncertainty and Middle East shipping disruptions weigh on exports, the head of a government-backed trade body told Reuters. The sector is now expected to reach $80 billion to $90 billion by 2030, well below an industry target of $130 billion set in ⁠April last ​year, Namit Joshi, chairman of the Pharmaceuticals Export Promotion Council of India, said.

UK's Convatec expects higher second-half margin, launches $200 million buyback

British medical products maker Convatec on Tuesday forecast its second-half operating margin to be materially higher than the first half, and pointed to accelerating demand for its infusion care products. Here are some more details:

UK's Smith+Nephew cuts 2026 revenue view on weak US knee implant demand

Smith+Nephew cut its forecast for annual revenue growth on Tuesday after missing second-quarter expectations, knocking its shares, as the British medical products maker grapples with weak knee implant demand and skin graft prices. After three years of cost cuts and sales initiatives, Smith+Nephew is banking on newer products to shore up revenue as soft knee and hip implant demand and reimbursement policies for skin substitutes weigh on returns from the U.S., its largest market.

Pfizer beats earnings estimates, targets $2.5 billion in additional cost cuts

Pfizer on Tuesday reported better-than-expected second-quarter results, boosted by strong demand for blood thinner Eliquis, and unveiled plans for an additional $2.5 billion in savings through its ongoing cost-cutting efforts. Pfizer said the additional savings, expected to be realized between 2027 and 2029, will build on existing cost-cutting efforts ⁠as it seeks to offset declining COVID-related revenue and restore sustainable growth.

India's Alembic Pharma posts quarterly profit rise on strong generics demand

India's Alembic Pharmaceuticals on Tuesday reported a 12.1% increase in first-quarter profit, driven by strong demand for generic drugs in its key U.S. market. Consolidated profit after non-controlling interests rose to 1.73 billion rupees ($18.14 million), from 1.54 billion rupees last year.

Treatment trials for Ebola strain behind Congo outbreak show promise, WHO says

Testing of experimental treatments, preventive medicines and vaccines for the Bundibugyo strain of Ebola behind Democratic Republic of ⁠Congo's ongoing outbreak is advancing rapidly, the U.N.'s World Health Organization said on Tuesday. The epidemic - the second-largest and fastest-spreading on record - was caused by the rare Bundibugyo ⁠strain of the virus, for which there are no approved vaccines or treatments.

Explainer-What to know about the US outbreak of cyclosporiasis intestinal illness

The U.S. Food and Drug Administration, Centers for Disease Control and Prevention and dozens of states are investigating a surge in cases of cyclosporiasis intestinal illness. Michigan, the hardest-hit state, has now reported two deaths and more than 11,000 cases as it searches for links beyond the initial cases tied to lettuce. The outbreak, one of the largest U.S. cyclosporiasis outbreaks in recent years, has been linked to shredded iceberg lettuce served at Yum Brands' Taco Bell restaurants in nine states. Investigations are continuing into other sources.

Analysis-Obesity battle heats up again as Novo claws way back into race with Lilly

Novo Nordisk investors have found little cause for optimism during a bruising two-year period of profit warnings, leadership upheaval and a ‌sliding share price as rival Eli Lilly streaked ahead. Now they may have reason for hope. Despite Novo having ‌lost ground in injectable GLP-1s in recent years, the Danish obesity drugmaker is getting a boost from its new Wegovy weight-loss pill that is holding onto its lead against Lilly's more recently launched Foundayo.

Goldman Sachs-backed Attovia eyes $731.5 million valuation in upsized US IPO

Biopharmaceutical company Attovia Therapeutics said on Tuesday ​it was targeting a valuation of $731.5 million in its upsized initial public offering, signaling strong demand for biopharma listings. Here are some details: