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TMFHelical (98.82)

JP Healthcare conference, Day 1

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January 08, 2007 – Comments (0)

One of the major investors conferences in health care, the JP Morgan 25th annual healthcare conference is underway in SF, CA. Over 4 day many (most) of the public players in Biotech, pharma, medical devices and healthcare will be presenting. The agenda and presentations are available with registration at:

http://www.m...welcome.html

Not all companies presenting will archive their presentations, but many do and they are typically up for a couple of months. Many include the slide shows.

http://www.m...windowsmedia

http://www.m...rchives=real

Depending on your player of choice.

I gave a listen to

Rehab Care (RHB - 2*) - never heard of them before

They operate and staff rehabilitation facilities in Nursing Homes, Hospitals, and their own facilities. They also offer consulting on rehabilitation.

This is a fully medicare dependant business i.e. 72% of revenue. Despite good top line growth contracting margins have resulted in decreased earnings. With a business dependant on government reimbursement, it is all about the margins i.e. management effectiveness. Opening their own facilities should help margins, but operations will have to improve for this company to show share price increase.

Worth watching, this market will grow the top line as the demographics move forward (we're getting older). If they can get a handle on operations i.e. margins, this may be worth an investment.

In the same vein the second company I gave a listen to Davita Inc. (DVA - 4*) - no slides : (. 2nd largest provider of dialysis services i.e. 3/10 of dialysis patients. A very solid recurring patient base - and again favored by demographics moving forward. DVA does not make money on the medicare / medicaid supported treatments - all revenues are from private supported clientele. They expect private rate compression pressures.

Competitor Freshenious (FMS - 5*) is worth a look as well. It is cheaper than DVA from a P/E and debt burden standpoint, not as efficient from a ROE, ROA. They are twice the size in market cap of Davita, and slower growing.

There could be fallout from the Amgen epogen reimbursement pressures, but also benefits from the potential for future bio-generics. Approximately 25% of the cost of the centers is pharmaceuticals.

Tomorrow I will try to listen to a couple of others.

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