April 27, 2025
2 min learn
Key takeaways:
- Ophthalmology has massive affected person numbers and market alternatives.
- Buyers search for differentiated merchandise or applied sciences with robust aggressive positioning.
LOS ANGELES — At this time’s unstable setting is impacting the markets, however innovation in ophthalmology will drive the sector and result in elevated worth, a JP Morgan managing director advised attendees at SightLine.
“Volatility is the theme of the market in 2025,” Mike Connor mentioned, and the ensuing uncertainty is affecting personal and public financing.
Picture: Nancy Hemphill
“We’re in a down cycle, however we are going to get by means of it,” he mentioned. “The motive force of that will likely be innovation. Will probably be the inventors, the founders, the operators, traders, physicians, surgeons — everybody on this room persevering with to take heed to sufferers’ unmet wants and advancing new therapies and merchandise. It will result in a rebound for our economic system and our sector.”
The outlook for inflation has remained unchanged this 12 months, regardless of totally different insurance policies being mentioned, Connor mentioned.
“Economists have elevated their chance of a recession from 20% to 50% to 60%,” he mentioned. “However, importantly, regardless of all of that, the S&P 500 goal continues to be 5,760, which is 7% above the place we presently are. Regardless of the volatility all year long, there’s nonetheless optimism round the place the market goes to go by the top of the 12 months.”
Connor mentioned traders search for differentiated merchandise or applied sciences with robust aggressive positioning.
“Are you addressing a significant downside?” he mentioned. “What’s the monetary profile of the corporate? Are you able to display excessive development at scale with enticing margins and profitability? Does the administration workforce have vital expertise in execution? We’ve over 850 public biotech corporations now. Numerous the administration groups aren’t as deep because the funding group wish to see.”
Connor mentioned a commerce deal throughout the subsequent 90 days could be good for the market.
“Even one would go a good distance,” he mentioned. “The most important overhang for the market in the mean time is China and the shortage of communication between the 2 nations. If there was any dialogue we predict that might result in a big near-term market correction.”
The constructive angle is that there’s greater than “$4 trillion of personal capital on the sidelines ready to be employed,” Connor mentioned. “There’s broad acknowledgment that the sector is oversold, and traders will look to deploy — and it’ll deploy shortly. … We’re advising shoppers to remain prepared and be able to capitalize when issues flip.”
Connor additionally mentioned that continued innovation will likely be paramount to creating worth in ophthalmology.
Ophthalmology has massive affected person numbers and market alternatives, he mentioned. The a whole bunch of ongoing scientific trials and FDA product approvals is encouraging.
“The hope is, since we’ve seen a rise in strategic exercise, that traders will begin to notice we have now created nice corporations assembly excessive wants in our trade and will result in extra firm creation and extra funding in our sector,” Connor mentioned.
Sources/Disclosures
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Connor M. If well being care is a lagging market, the place does ophthalmology stand? Introduced at SightLine; April 24, 2025; Los Angeles.
Connor reviews being employed by JP Morgan.
