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A Preview Of JPMorgan's Healthcare Conference: Focus On Value-Creating Themes, 2020 Expectations

A Preview Of JPMorgan's Healthcare Conference: Focus On Value-Creating Themes, 2020 Expectations

The 38th annual JPMorgan Healthcare Conference, which is tipped off as the biggest health care investment symposium, kicks off Monday in San Francisco, California.

From the high and mighty to the smallest of nanocaps, biopharma and health care companies have scheduled presentations at the four-day event. It's a no-brainer that the presentations will move stocks and serve as key catalysts for respective companies.

BofA Securities analyst Geoff Meacham expects investors to be acutely focused on 2020 expectations and the potential to maintain the positive momentum of 2019's year-end rally. The analyst is bracing for a conservative tone from larger-cap names, given the moderate but improving growth expectations that would offer scope for multiple guidance revisions throughout the year.

Meacham expects discussions at the conference to be focused on value creating themes such as expanding indications, new product cycles, especially with oncology, inflammation & immunology and orphan diseases and advancing innovation in gene/cell therapy.

"Combined with the unlikelihood of near-term major structural reform and P/E ratios that now lag improving expectations, we remain positive on the sector and the outlook for multiple expansion, with greater generalist participation," Meacham wrote in a note this week.

Here's what BofA expects from some key presenters in its coverage universe.

See also: Attention Biotech Investors: Mark Your Calendar For These January PDUFA Dates

Bristol-Myers Squibb Co (NYSE: BMY)

Bristol-Myers Squibb, which completed the acquisition of Celgene late last year, is likely to give at least partial guidance. Meacham believes 2020 guidance could be an early positive driver of shares.

Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)

The analyst expects Vertex to provide fourth-quarter update on its cystic fibrosis agent Trikafta, with the analyst expecting sales of $223 million, well above the consensus estimate of $64 million.

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN)

BioMarin could delve on the commercial opportunity of valrox and vosoritide following the filing for the former and positive Phase 3 data for the latter.

Regeneron Pharmaceuticals Inc (NASDAQ: REGN)

Regeneron is likely to release fourth-quarter sales of Eylea. Given Eylea's declining growth, Meacham said the focus could shift to Dupixent, which remains a key P&L driver.

Biogen Inc (NASDAQ: BIIB)

BofA expects Biogen to specify the timing of its aducanumab regulatory filing, if it hasn't been already submitted. The company could also announce a settlement with Mylan NV (NASDAQ: MYL) over the Tecfidera intellectual property right.

Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN)

Meacham expects Alexion to focus on its portfolio diversification strategy, especially due to pressure from activists and competitors. Updates on ALXN1830 and anti-Factor D ACH-5228 is likely.

Gilead Sciences, Inc. (NASDAQ: GILD)

Gilead is likely to update on its global launch plans for filotinib, with the second half of 2020 being the likely timeframe.

Amgen, Inc. (NASDAQ: AMGN)

Meachem expects Amgen to discuss the integration of Otezla into its I&I franchise, update the status of assets in its oncology pipeline and give its expectations for the launch of its biosimilars.


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