Nuggets from my 2023 JP Morgan conversations
It was an optimistic outlook for the LifeSciences industry at this year’s JP Morgan and surrounding events.
My conversations with Start-up CEOs, strategics, venture firms, PE firms, and Board Members yielded these nuggets:
Organizations are flexing their workforces.
– Companies expanded into business areas that were speculative, some worked out, some did not.
– There was over hiring or ongoing retention of below average staff as a hedge against the quiet quitting movement.
– Return to office, because our industry manufactures product, you must be in person with the team for optimal productivity.
– DEI initiatives are alive and well, driving the requirement for companies to think about hiring talent that is not white-male
Spinoffs and divestitures will continue for Strategics, selective acquisitions.
– Companies will focus on segment strengths and feed profit back into performing franchises and divest the segments that continually underperform.
– Divesting franchises / divisions allows entities to go back into the market that may be better served by a more focused effort
– Merger and Acquisition activity will pick up for strategics if the target is aligned with market expansion initiatives, and value priced
Start-ups need to focus not only on accretive value for their acquirer, but also seamless integration, as a natural extension of the business.
– You need to focus on streamline processes, and optimization of talent, creating value for the product and the team.
– Focus on your primary product – do not try to do too many things and get diluted, pick one horse and ride it to the finish line, product line extensions can be part of your expansion strategy.
– Look for ways to partner/merge with other startups in order to survive and create more value for potential acquisition.
The Digital Revolution is here
– All lifescience companies are looking for ways to stay connected to the patient and provide value to the providers, spurred on by the staffing shortages in hospitals, through remote patient monitoring.
– Others are compiling the data collected from patients and looking for new ways to diagnose and track chronic disease. If your company does not have a digital strategy, it should.
– Technology integration into biotech, medical device, and lifescience tools companies is here, and data is king.
Capital is available, but becoming more selective, at attractive valuations
It will be an amazing year with many opportunities for great leaders to showcase their ability to perform and create winning teams, with lifesaving and health enhancing products.