Over 9,000 people attended the meeting, Wall Street folks, VCs, Entrepreneurs, CEOs, innovators, physicians. Folks attending the meeting had to show their invitation confirmations, those staying at the hotel had to show their room keys, so the security crush significantly cut down “clock tower” meetings in the hotel’s lobby. Coupled with the unusually good January weather, Union Square became the preferred chat-up locale, to the point that the park was overrun by posses of (mostly) men in black suits. This is where attendees (investors) figure out where they’re going to put their money in the year.
In side the St Francis Hotel. The Investment community was bullish on the prospects of the med tech sector in 2012 despite the fact that the medtech industry concerns have not permeated the FDA.
One of the positive notes struck in this week’s 30th Annual J.P. Morgan Healthcare Conference (held in San Francisco) was the announcement by Kevin Willsey, J.P. Morgan’s co-head of investment banking for North America, that the U.S. economy would grow 2.5 percent in 2012
In the opening remarks of Jamie Dimon, J.P.Morgan’s Chairman and CEO. In a Q&A with Maria Bartiromo, Anchor of CNBC’s “Closing Bell,” Dimon mentioned that he saw hope despite the sobering challenges faced by the industry and the country.
Dimon on Economy:
PEOPLE WANT TO GROW, THEY WANT TO EXPAND. THE INNOVATION AND TALENT OF THESE COMPANIES IS EXTRAORDINARY. AND YEAH, I THINK WE'RE STARTING TO SEE THE WORLD RETURN TO A GOOD, NORMAL, LET'S INVEST, LET'S TAKE RISKS, LET'S GROW AND FIND NEW PRODUCTS AND SERVICES. I THINK THAT'S A GREAT THING
The sentiment of the CEOs and executives from EU and Asia showed promise and growing demand in health care across EU and Asia. China added over 10,000 hospitals last year, and continues to build. This has created demand and respect for new technologies and innovations. China and the emerging markets are encouraging innovators to seek funding in their countries if the regulatory environment is not apt for innovation in the US.
Other news:
- Bristol-Myers Squibb’s $2.5 billion purchase of Inhibitex.
- Increase in the awareness for treatments of Obesity and Diabetes using drugs and medical devices. Investors showed renewed interest in the Diabetes and Obesity treatments
- Abbott CFO Thomas Freyman provided lots of details, which he dutifully read, about the planned split of the company into two — pharmaceutical and medical products companies. Medical devices will contribute about 27% of Abbott's (NYSE:ABT) sales after it spins out its research pharmaceuticals unit later this year, CFO Thomas Freyman said
- AstraZeneca’s CFO Simon Lowth provided a change of themes as he placed the importance of partnering as a primary plank of his pitch. He portrayed AZ as a “focused, innovation-driven, integrated global biopharmaceutical company.”
- Former FDA Commissioner Mark McClelland, in a luncheon presentation on Wednesday, also gave hope for some good coming from the Affordable Health Act. He stated strongly that “the law was very unlikely to go away.” He foresaw 2012 as a very important year for financial discussions focused much more on the “value” of health care, regulatory reforms and more effective health care.
- The lack of sufficient funding for new start-ups, perhaps the largest “elephant in the room” and a major cause of feelings of uncertainty among entrepreneurs, also went unaddressed. Yet it was the focus of many quiet conversations in the hallways. Start-up company founders and supporters shared experiences of finding the “VC wells dry,” greater difficulty in winning NIH grants and scrambling to line up alternative funding sources. Some looked to other conferences in town for answers to these important questions.
The buzz here this year is all about: (1) innovation: a year jam-packed with new milestones (2) collaboration: academia, pharma, biotechs, medical device makers, VCs, non-profits (3) deal-making: pace of deals is likely to pick up as big pharma looks to replenish pipelines.
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