With the J.P. Morgan Healthcare Conference quickly approaching (again), it is now time to start your planning for one of the most important healthcare events of the year. It is not too early to secure your meeting and sleeping space, refresh your messaging for your meetings with investors, analysts, bankers and strategists, and start the outreach to lock in your schedule with the folks you want to spend time with. As you well know, most people involved with healthcare will attend this event and being more organized than the next guy may be the reason you achieve your strategic goals for attending this important event. The J.P. Morgan event is so important, in fact, that I asked our team for their best advice in preparing for the show.
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.
Your investor presentation is one of the first things that investors and analysts look for (along with SEC filings) when trying to get up to speed on your company. It’s often the first chance to tell your story in a crafted manner.
In other words, it’s crucial.
Thousands of public companies have just released their quarterly earnings and held those dreaded earnings calls — far more dreaded for those whose numbers missed estimates. While they’re not much fun for anyone, it can’t be overstated how important earnings calls are for your reputation as a leader and for the prospects for your stock.
The call is your chance to communicate your story to the world, to put your perspective formally into the public record. And it’s your investors’ and analysts’ chance to seek clues about your future prospects. In short, the call is something you just can’t afford to mess up.
It would be great if you could attend every investor conference you’re invited to. After all, they’re an excellent way to tell your story, deepen your relationships with analysts who cover you, begin new relationships with analysts who don’t yet cover you, and ultimately target and attract new investors.
But it’s impossible for any public company to go to all of them. There are more than 100 Wall Street conferences in healthcare alone, and many more focused on growth-oriented companies of any industry.
I’ve written before on collaboration between the information “silos” that exist within some organizations and why it is important to establish — and stick to — an internal control process for issuing public information. The other morning, I was reminded why this is so important … and the consequences of what can happen when it breaks down.
Shortly after market open, I received a call from a CFO saying he was surprised by a press release that his company had issued pre-market, about which he was already getting calls from analysts with questions. He had to go to his own company’s website to see what had been released. My second call was from the General Counsel of that same company asking how they could add a Forward Looking Statement paragraph on a material release that had already been issued, as well as make corrections to outdated language in the “About the Company” section.
Anyone who pays attention to Wall Street knows that 2016 has gotten off to a bruising start. The Dow is off nearly 7 percent since the beginning of the year, and more than 10 percent since peaking last May. The S&P 500 and NASDAQ Composite Index have seen similar declines since their peaks.
That’s a tough environment in which to go public. And, indeed, not a single company did so in January, the first month in more than four years that lacked an IPO. Right now, investors just aren’t sure how to value new offerings while the broader market continues its correction.
The 2016 J.P. Morgan Healthcare Conference has concluded, and while the market backdrop for this year’s event was noticeably less positive than it has been in recent years, the conference was nevertheless rich with important lessons. We polled our team on what struck them most about the event, and what guidance they’d offer to companies attending future conferences. We found their responses illuminating, and we think you will, too. Enjoy.
I worked on the sell side for seven years and I saw it all the time: Companies issuing material news — sometimes very good news — while failing to appreciate how the announcement would be received by a skeptical investor community.
As an executive, you want to minimize any negative reaction to your company’s latest update. That’s natural. And while there’s certainly nothing wrong with accentuating the positive, it’s important to remember that sell-side analysts are trained to poke holes in your story. That’s their job, and most of them are very good at it.
In a previous blog post, I discussed why it is essential for companies heading into an IPO to carefully evaluate the sales teams of potential investment banking partners before selecting their banks. Their job is to sell your stock to institutional investors. Yet sometimes the distribution capabilities and differences of each bank is underappreciated.
In this installment, I want to explore the importance of maintaining a strong relationship with that sales force after the initial offering is complete, and to share some ideas about how to do it.
In the past several months, several of our Medical Technology clients have participated in investment bank-sponsored conferences or traveled to meet investors in one-on-one meetings. In preparation for these meetings, we work with our clients to create a list of topical and provocative questions that investors are likely to ask, and we help to prepare scripted answers. We also create investor profiles ahead of every investor meeting so that our clients have information at their fingertips on competitive share positions, the investor’s background, and our insight as to focus areas for that particular investor.
While most questions that investors and analysts ask in these meetings pertain to the particulars of the business, revenue growth, and market dynamics, we have come to expect the unexpected. We know that thorough preparation is crucial.