An update from the J.P. Morgan Healthcare Conference

January 12, 2010 – 11:10 am by Steven Niles

Frequent Med Ad News contributor Kevin Butler of Heritage Partners International is in attendance at J.P. Morgan’s 28th Annual Healthcare Conference in San Francisco. Mr. Butler will be checking in routinely with updates from the event, which brings together industry leaders and technology and service providers.

Upon arriving yesterday, January 11, Mr. Butler reported that the event was in full swing with a good crowd as expected. Many deal makers are in attendance and seem in good spirits.

“Morale is pretty high,” Mr. Butler says. “Many need money, but either they are less worried or they have come to accept events.”

Last night the conference gave way to the usual parties and receptions. Spirits remained high with the money guys.

“If they are sincere, we should see a slew of financing announcements in the coming weeks or months,” Mr. Butler reports. “If not, it will be a sure signal that all is not well. And these were game faces.”

Back on the conference floor this morning, Mr. Butler reports that while companies are still looking for money, a number are getting traction with big pharma. Whether that results in funding remains to be seen.

“I sense there has finally been some solid thinking about the future, dealing with healthcare reform and lack of pipelines, such that the themes discussed are different and better focused,” Mr. Butler says. “Cardinal’s CEO is presenting some thoughts on their new paradigm. Also, the genetic diagnostics sector is gaining momentum and a ‘legitamacy’ I don’t think they’ve had in the past.”

Venture continues to look for less risk without surrendering their upside. Mr. Butler wonders whether the venture model will go through a major change. “They may need to since their old approach may not enable them to deliver expected returns in today’s world,” he says.

Stay tuned for additional updates as the event progresses.

Tags: deal making, healthcare conference, Heritage Partners, J.P. Morgan