Hambrecht & Quist
18th Annual Healthcare Conference
On the road for
Info.Resource, publisher of Oregon-Bioscience.com
1999. It was a very good year.
By Lorraine Ruff and David Gabrilska,
Milestones, the critical thinking company
"It was a year in which stocks moved more in a week than they did in
" according to Todd Bakar, director of equity research, Chase Hambrecht
."everything was condensed into "Internet time."
Instead of day traders, we may well become moment traders with the stomach
to walk calmly on deck during rigorous corrections. At a time when there's no time to
read, it is a game for those who can factor trends into investment decisions, and then
double down, including the biotechnology sector.
The last event of the last day at Chase Hambrecht & Quist includes the
sell-analysts' collective top picks. For purposes of the Chase Hambrecht & Quist 18th
Annual Healthcare Conference that ended last week in San Francisco. We've selected two
...the focus is on process and automation...
Healthcare Internet/B2B (business to business) eHealth companies According
to Stephen Fitzgibbons, healthcare Internet analyst, he's looking for continued momentum
in the eHealth sector.
Just a year old, this new "space" on Wall Street accounted for
20 newly public eHealth companies. "Consolidation is already occurring as,"
according to Fitzgibbons, "companies use their powerful currencies to build critical
With just 12 months performance, the
index for CH&Q's eHealth companies up 226 percent.
Fitzgibbons stated that from his perspective there are a number of very
clean evolutionary steps that are defining this new space:
There's the Internet development stage (Winter 1996) in which content was
king. Good examples of this phase were hospital web pages and www.DrKoop.com.
"That was followed by the commerce stage (1999) in which most of the
activity was business to consumer.
"2000 will be the B2B (business-to-business) stage where the focus in
on process and automation," adding that in a very few years the distinction between
the "clicks" and "mortar" (Internet vs. traditional) companies will
cease to exist. The Internet tools will have been integrated.
B2B eCommerce is "white hot," adding that he expects exciting
investment opportunities in B2B medical products, healthcare services and insurance and
benefits. "In our opinion, B2B exchanges will streamline supply chains across the
economy, creating enormous value for early investors," he reported.
"Someone compared me to Stuart in the AmeriTrade commercial," he
said. "I have to admit, we've lit the candle."
eHealth top pick: SciQuest.com Inc. (SQST) $71.00 BUY
The biotechnology sector has been strong for two years. In 1998, it was
driven by excellent performance among top tier companies, including Amgen, Genentech, IDEC
and Immunex, and new drug introductions. The rich get richer.
In 1999, growth and performance in the top tier lit a fire under
speculative investors who, in turn and with the help of nearly a media glut in
genomics-related stories, drove the sector to new heights. Comparatively, nearly
everyone's boat was floated.
"Data is king and winners in this sector will be those who generate,
interpret and apply it," said Rob Olan, life science technology analyst. Through
acquisition Perkin Elmer has built a uniquely broad set of data tools and a roster of
divisional players such as PE Applied Biosystems and its newest addition, PE Celera.
These are companies who are literally creating before our eyes the tools
with which we will interpret and apply the plethora of information of the genomics
"This is the year when there's been a shift in the balance of power,
when the basis for drug development has shifted from chemistry to biology and
genomics," said Richard van den Broek, CFA, managing director and biotechnology
Biotechnology top picks:
Incyte Pharmaceuticals (INCY, $89.66, BUY)
Back to J.P.
Morgan H&Q Healthcare Conference Archive
Gilead Sciences (GILD, $56.31, BUY)