2349 GMT - M&A is a theme to watch among Australian healthcare stocks this year, RBC Capital Markets says. It points to low debt levels in the sector. Most companies covered by RBC are likely to have a leverage ratio of 1.5x or lower, analyst Craig Wong-Pan says. "We believe the mix of new CEOs, low debt levels and challenging conditions could lead to potential M&A in 2026," RBC says. ResMed is likely to keep making small bolt-on acquisitions in respiratory care and adjacent markets, while Ansell could target small or medium-sized deals, RBC says. "CSL has said it will pivot its R&D activities to focus more on development and it could undertake licensing or partnerships for later stage assets," it adds.(david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 18, 2026 18:49 ET (23:49 GMT)

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