JANUARY RECAP & BEYOND
As we enter 2018 and on the heels of the J.P. Morgan Conference earlier in the month, January has been busy and productive marked by strong investor sentiment, healthcare sector performance and new issues. Included in this issue are our top takeaways from the J.P. Morgan Healthcare Conference as well as insights into how to structure earnings call scripts, how utilizing social media benefits investor relations programs and tips on improving the quality of webcasts and investor outreach.
Uptick in Capital Markets Activity
We have seen, and continue to see, publicly-traded companies begin to access the public markets in an effort to strengthen their balance sheets and extend their cash runway while private companies are opting for crossover rounds with traditional public investors participating alongside insiders. We are also starting to see appetite for initial public offerings with six biotech IPOs pricing in January.
Healthcare M&A Expectations Robust
We expect to see U.S. M&A volume continue to increase given the lowering of the foreign cash repatriation rate to 15.5% on cash and equivalents and to 8% on other foreign earnings. In both biotech and the medical device sectors, M&A activity is expected to be robust particularly among publicly traded SMID-cap and private companies.
Positive Medical Device Fundamentals Continue
Analysts cite solid pricing trends which remain unchanged, product introductions which are driving innovation and underlying growth trends driven by steady demographic-driven volumes.
Optimism for Biotech
Biotech is leading the charge with innovative and groundbreaking technologies that are driving a renewed interest on the part of investors, which analysts believe could result in robust money-flow into companies with strong development pipelines and solutions meeting unmet medical needs.