It’s time to start planning for the biggest healthcare investment conference of the year. For four days, investors, bankers, analysts, and business executives will be at the J.P. Morgan Healthcare Conference, from Monday January 8, 2018 through Thursday January 11, 2018, amid back-to-back sessions, corporate pitches, and networking events. From getting organized to figuring out how to maximize meeting time, it’s important to lock down your company’s approach so you can navigate the chaos with ease. Here is a checklist to help you prepare for the J.P. Morgan conference so that you make sure your time spent is a success.
The Westwicke Blog is designed to deliver information and insights into the ever-changing world of investor relations and the capital markets, with a specific focus on the healthcare industry.
We recently hosted a luncheon for biotech execs where our special guest speaker was Ed Baxter, senior managing director of Evercore’s corporate advisory business, focused on life sciences and healthcare. Ed has broad experience in biotech and life sciences investment banking and M&A at a variety of firms from boutiques to bulge brackets. Here are his key thoughts and takeaways on raising capital for the sector and where it may be headed.
Whether it’s your first J.P. Morgan Healthcare Conference or your 36th, if you are involved in the healthcare sector in any way, you know J.P. Morgan is the super bowl of healthcare conferences and for four days, it becomes the epicenter of healthcare. The attendance is staggering with approximately 20,000 healthcare professionals ranging from institutional investors, private equity and venture capital investors, bankers, analysts, and company executives all gathering to see the next new thing in healthcare. It is the place to be for healthcare executives to start the year.
Unlike many of the public companies, whose main objectives are to see owners of their stock, as well as meet new potential holders, the way a private company approaches J.P. Morgan may be — and should be — a little different. Westwicke Partners works with a number of global private (and public) healthcare companies in all phases of their corporate lifecycles. Some of our private clients are pre-IPO companies beginning the process of getting to know Wall Street and the institutional investors, while others may be in the midst of some corporate action such as a cross-over financing, a license deal, or merger or acquisition. Which “track” a private company is on should change the way they approach J.P. Morgan.
Attending Wall Street investment banking conferences is a large part of a strategic investor relations plan. Along with non-deal road shows, management’s visibility and interaction with buy-side accounts during one-on-one meetings are critical for conveying your story to potential investors, addressing unanswered questions, and expanding on an investment theme. But, finding the appropriate conference strategy can be harder than it seems, especially when it comes to lining up a successful meeting schedule with key buy-side accounts.
You are an executive at a development-stage life sciences company. You have just been through the intense and grueling process of completing your initial public offering. Congratulations. You must now look towards executing a strategic investor relations plan. Quickly, you are faced with a significant decision: Should our company host quarterly conference calls?
Ultimately, there are pros and cons associated with both options.
The story of development-stage biotech companies is one of continuous fundraising. Not until approved products generate enough revenue to ensure a degree of self-sufficiency can you take a break from raising capital.
This process can take many years and many companies won’t make it. Either they’ll be acquired along the way or their product will fail one or more clinical trials.
Not long ago I was surprised to discover that a client of mine that had recently completed a rebranding effort had sent out some messaging to investors under its former name. It turns out that the company was still using its old name with some audiences.
In this case, the company had good reasons to hold onto the benefits of its old brand, so it retained it as a subsidiary to its newly named parent company. And that’s not unusual. Many well-known brands or and products are owned by corporate parents you’ve never heard of (just as many well-known corporations have low-profile subsidiaries or product lines).
MiFID II is a term you are bound to hear more often over the second half of 2017. It is the European Union’s Markets in Financial Instruments Directive II, a financial services regulation in the EU that will unbundle broker/dealer research and corporate access services from execution services. It is scheduled to become effective on January 3, 2018.
As an executive of an American public healthcare company, you might be asking yourself why you need to be aware of a European regulation. The answer: Because many major institutions operate on a global basis, the impact, while initially centered in Europe, will ultimately be felt in all corners of the global financial markets.
At Westwicke Partners, we’re often asked for our opinion on the state of the market for new public offerings. And the sad truth is that for all but a fortunate few, the IPO window has been shut tight for more than a year.
But the IPO market, like all markets, is cyclical. This bearish view of new public offerings will eventually turn, just as it has many times before.
At some point during your company’s growth, you will need to share sensitive data with investors and financial professionals by using a data room. In the old days, a data room was just that: a room filled with printed files and reams of paper containing patent descriptions, clinical data, and financial projections.
Today, data rooms are usually virtual. And with hackers increasing their efforts (and their ability) to steal sensitive data, it’s vital you consider security as well as service and convenience as you evaluate data room solutions.