YouSaid · the spoken record

John A. McCarthy

lines on the record: 33
first: 2019-11-18
most recent: 2019-11-18
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“My general advice to the younger folks in our team is folly or passion and always take advantage of every opportunity that's given to you. And so if you follow your passion, you're going to be more motivated and you're going to be able to bring a lot more energy to whatever your role is day in, day out. And take advantage of every opportunity that's given to you is, for example, like our team that has the opportunity to work now and being biased, but arguably one of the best platforms in all of investment banking. And I'd like to believe within our healthcare team, one of the best healthcare franchises within all of investment banking. I don't mean that in a conceded way. I just mean to be able to do what we do and work with the companies that we get to work with. It's a pretty awesome opportunity.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“And that is true, whether it's an insurance company, whether it's a hospital, certainly, whether it's a drug company. Pick any company across any sector in healthcare. And I would argue that they're touching the lives of patients and their families. And so at the end of the day, we're helping our clients help patients and their families. And to make sure that our team understands that mission is super important. So it's being present as much as possible given the constraints of the job, but also making sure that everybody's bought into the mission.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Always looking for more time in the day. We have to spend a lot of time with clients. That means you're on the road quite a bit, but I'm constantly mindful of the fact that being present and being connected with your team is super important. We've been able to build a really special team within our healthcare banking effort. We are constantly focused on the culture of that team. We try to stay very well connected to our people, but we try to also instill in them an understanding of what the mission is. And as I've just kind of alluded to as it relates to my own background, we very much focus on making sure that as we talk to our team, they understand that our mission is really twofold. It's to work with the most important healthcare companies and hopefully on some of their most important transactions. But it's also for them to understand that what our clients are doing is super important in affecting the lives of patients and their families. And you can pick any company within the healthcare industry.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“They said, wow, like you seem really impassioned about what we do. And for me, it was just like, this is incredible. This is the frontier of medical science. And I got to participate in it. And so basically I got to grow up with the biotech industry. And so it's been a wonderful run”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Bit and then the plan was to go back and get my MBA. So this is the mid-90s now, and I basically stumbled across a job. And what turned out to be biotech investment banking, it was a newly formed healthcare group in UBS. And I got the job just because I had a general interest in healthcare. And then it turns out I was able to focus on being a biotech banker basically for my first day as an associate. And so now I was a focused biotech banker at a time when the industry was still young and developing. And I was able to get a lot of exposure and a lot of experience. And I was able to really connect with clients because”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Exactly, what I want to do. I love medical science, but maybe I'll focus on education that will prepare me for a career in business. And maybe I approach medicine from that angle. And so at Amherst, I studied economics and English. I had a wonderful experience at Amherst. It was a great education. And then coming out of Amherst, I similarly was going to say, okay, well, let me try to have a well-rounded education that sets me up for a career in business. I was going to do my JD and MBA. I started the JDMBA program at Georgetown. I was sitting in my 1L classes and realizing, well, geez, it might have been helpful or valuable to actually go work and then go back into graduate school. But I went straight from Amherst to Georgetown. So I came out of law school, enjoyed that education. I thought it was really valuable education. I came out of law school. The only job I could get in 94, which is when I graduated, was it was hard to explain why I went to law school not to be a lawyer, but I ended up fracting law for a little bit.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Us, me and my siblings. To be with my parents or to bump into somebody in the neighborhood or in the community, and they'd say you're dad. And my mom was very involved in my dad's practice. Your dad or your parents saved my life or saved my mom's life or saved my father's life. And so you grow up with that. And you see like, wow, that is remarkably powerful. And it certainly motivates you to kind of do the same. And so you want to help people, you want to help your community. And so I always thought I was going to be a physician. We talked about some of the changes of healthcare in the healthcare industry. So that's not just a recent thing. So healthcare in this country in particular has been changing for many decades. And so when I was in college, I went to Amherst College and I hadn't yet picked my major. My oldest brother is 10 years older than I am. So he was already through not just med school, he was through his residency. So now he's a practicing physician. And through his eyes, I could start to see the practice of medicine changing. And I said, well, I don't know.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Certainly before it was called HIV. So, as I said, the dinner table setting, there was a stretch there, and he's otherwise a pretty talkative guy, but he'd come home at night and he was just kind of losing himself into his meal and just sitting there quietly and clearly distressed. And so this went on for a couple to a few nights. And my mom, who was a super strong woman, really remarkable lady. One night she kind of hit the limit and she said, enough and reprimanded my dad and said, what's going on? And drew him back out into basically talk about what was going on. And then he just started saying, I don't know what's going on. We have an increasing number of patients in the hospital. Their immune systems are shutting down. They're losing a lot of weight. They're having various complications that we just can't explain and can't figure out. And that was the front end of the HIV epidemic. And he was right there in the middle of it. And so those memories, when you grew up with them, those are etched in my memory. Also, he had a lot of impact on a lot of patients. And it was a pretty irregular occurrence for”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“It was pretty cool, yeah, but I didn't know anything otherwise. Biology, medicine, medical science, treating patients. That's kind of what we grew up learning at the dinner table. As many colleagues of mine have heard me tell this story, my dad was an infectious disease specialist and a very good one. And he was for 55 years at the same hospital in Newark, Inner City Newark. A result, as sort of fate would have it, he ended up treating some of the first HIV infected patients in the US before the disease was understood, before it was characterized.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“I am a black sheep. I was labeled a black sheep from a very young age, so I grew up with that distinction. But I grew up, importantly, with medicine at the dinner table. And so it was pretty regular event for us to have dinner together as a family every night or as often as possible. My dad would come home from the hospital. We'd have dinner together, all seven of us sitting around the table. And so invariably we ended up talking about medical cases at dinner pretty much every night.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I was one of those kids growing up. I always thought it was going to be a doctor. I grew up in a family of physicians. My dad was a physician. My mom was a nurse. They met when they were respectively at med school and in nursing school. I'm the youngest of five kids, and all my siblings grew up to be physicians or physicians today.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“I would say that as more and more technology within the healthcare space, specifically within the therapeutic space, is becoming here and now, that there are benefits that come with this, but there are some untoward effects that we really need to be mindful of. One area, of course, is gene therapy. The potential benefit associated with gene therapy is enormous. There are so many diseases out there that are devastating, certainly impact overall quality of life, and quite often life expectancy. And these are horrible diseases that really haven't had any kind of effective therapy to date.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“There's such focus across various components of the industry and most of the key issues, I think, are very sort of top of mind, whether it's a lot of the innovation that's taking place in the drug space, the potential for true price pressure or pricing legislation, specifically here in the US for the drug space. The consolidation, the vertical integration in the healthcare services sector, some pretty interesting developments.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“You can't throw a baseball standing on a street in Shanghai and not hit a gene therapy compan There's huge investment taking place in the kind of the cutting edge of biotech in places like Shanghai and elsewhere in China.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“But what these companies have also been able to demonstrate is not only a level of sophistication of drug discovery, but also an ability to develop drugs, I would say, to run the clinical development in a comprehensive but very expedient way. I don't mean they're rushing it, but you just think about the magnitude of the numbers. If you want to run and enroll a trial in lung cancer, unfortunately the ability to do that and find patients is particularly straightforward. And so the ability to actually enroll and execute trials in a differentiated way has been interesting to observe. Another thing I've observed, and perhaps it's an analog to what we've seen in the tech industry, to not focus on yesterday's technology and keep trying to advance that, but then to say, okay, what is the frontier and invest and make very quick differentiated gains there? So, for example, one large institutional investor, he's saying this in a humorous way, but I think there's some truth that he says.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Well, I think what you see in China is just because of the scale of it. So first of all, you may be aware, you know, it is a huge priority for China and the Xi Jinping administration to make sure that they robust, comprehensive way, develop their healthcare industry, all components of the healthcare industry with a near-term priority on therapeutics, which includes not just drugs, but things like gene therapy. So a couple things in China. First of all, the flow of capital towards healthcare in China is pretty massive. The flow of talent into China healthcare has been pretty remarkable. And so what you're seeing is what they're calling the returnee movement. So a number of very smart, very talented people that have spent Khalit twenty, thirty years working within a Western healthcare company, large multinational pharmaceutical company, developing a huge wealth of expertise, coming home and starting or leading various local companies, particularly biotech companies. That's been super impressive to watch.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Certainly, the personalization of medicine, it's a word that's been thrown around for a long time now, but it very much has become here and now. So that's not possible without the real acceleration or the real change in both the cost and power of computation on the true tech side.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Once you get fast, robust, cheaper price points for sequencing at biopsy from a patient, so for example, a cancer biopsy. We get to then say the practicality of treating patients at a genetic level is here and now.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Again, let me break that down into different pieces. So there's drug discovery technology. And so what we've seen over the past, call it 20 years is a dramatic acceleration of the understanding of underlying biology and the development of drugs against a now better elucidated understanding of various diseases. Sequencing of the human genome, for example, major, major breakthrough. But once it was initially sequenced, it really had to be better understood. So in the decades hence, a lot of work has gone into that. And I would say that we're really starting to see an acceleration of discovering innovation based upon that. Related to that is developments on the true tech side. So computational bandwidth, computational power, that ties inherently into drug discovery that allows for faster, more comprehensive, higher fidelity sequencing of genes or any particular tissue type or biopsy, for example. It allows for”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“So obviously the emphasis is on the technology and the new and solving new problems. I mean, it's hard to generalize because it's a very complex and huge industry. But is there one particular area where you think technology is particularly reshaping this industry?”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Drugs from old technology, so drugs that were approved kind of 10, 15, maybe even 20 years ago, drugs that are not particularly differentiated relative to other alternatives that are treating a particular disease, and certainly drugs that don't offer a meaningful additional clinical benefit. So that's why you're seeing pharmaceutical companies define their strategies the way they have been, which is, okay, let's make sure we're addressing really underserved markets or unmet medical needs, or let's make sure if it is a reasonably served indication or disease, let's make sure we have a step function change in the benefit that we're bringing to bear.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Huge impact for the patient and their families. That drug is going to get paid for. That drug should and will likely command a fair, if I could put it this way, rate of return for the pharmaceutical company or biotech company that developed it. That company should be able to price the drug accordingly. What is more likely in going to be affected by legislation or market forces or both as it relates to drug pricing?”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Let me take those in turn. So, first of all, as it relates to drug pricing, it's a big unknown. And pretty much every CEO within the industry and every board recognizes the uncertainty that's at play, is trying to prepare for an operating environment one year, two years, three years hence, that is a lot different than it is today. I mean, we have a couple of different bills that have been put forward on Capitol Hill unclear as to what the ultimate legislation, if any, will come to pass. My own personal view is it's very likely something post-election rather than before. But nonetheless, I think there's a recognition that there was likely to be drug pricing pressure in the U.S., whether it's driven by legislation or market forces or both. And so that comes back to some of the things I was talking about earlier, which is the prioritization of innovation. If you have a drug that addresses an unmet medical need and has”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“You mentioned at the top that the industry is very focused on the political uncertainty that affects their industry, and it's an industry that has a long history of being in the regulatory spotlight. How are the boards and CEOs thinking about how to navigate that on certain landscapes?”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“As I referenced the success and innovation. And so what we need to, I'd say, contextualize is that oncology, of course, is a broad category. It's a number of different diseases that comprise it. If you go kind of tumor type by tumor type, indication by indication, you'll find a number of different examples where pharma companies and biotech companies have been able to really change the face of disease. As a result, because of tremendous amount of innovation that's taking place not just in the past five years, but over the past 30 years, the elucidation of the underlying biology that underpins various tumor types and obviously the intervention or treatment of these tumors and ultimately the development of therapeutics against that has been significant and generated a fair amount of return.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“The very large kind of north of 50 billion. You know, there's been a couple this year 80 plus. And so those really are kind of of a different ilk. It's not, are there other interesting assets out there that we can go in and have them sort of bolt on and supplement our portfolio? It's do we need to completely transform the composition of our business and change the next five to ten year outlook and potentially offset some of these headwinds that the industry writ large is facing. And so I would say they're sort of bigger picture dynamics that are driving some of the large cap consolidation.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Let me split that into two parts. First of all, just regular way MA consolidation of assets, acquisition of other growth assets by any of these companies. It's just part of their growth strategy. It's not a primary part of their growth strategy. And so there's the organic development, and then of course there's the inorganic sourcing of growth opportunities. Largely, the latter is large pharma or large biotech buying smaller biotech companies. And the smaller biotech quadrant of the industry continues to be remarkably productive. And so there's been a ton of capital flowing into smaller and younger biotech companies. There's been a lot of talent flowing into that part of the sector. And they've done a great job at developing new drugs with huge impact. And pharmaceutical companies and large cap biotechs, of course see that and say, look, this is an appropriate and important way for us to supplement our organic growth opportunity. The large capa.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Each of those respective companies really understand the value proposition within the drug space and really understands that at its core is innovation. At its core is addressing severe unmet medical need. And if they're able to do so, and as I just referenced, they've been very successful in my opinion in doing so, particularly over the past five years, they're going to be able to affect in a very positive way their growth outlook.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“So, you really have to kind of peel back the layers of the onion to get at the issue of growth in pharma because there is a very significant part of their business that is still driven by the innovation that they themselves are able to create. And they're having huge, sometimes breathtaking effect. They have a number of franchises within each of their respective portfolios that are growing quite well. Now, these are large multinational organizations with a huge portfolio of products, some of which have either reached kind of the end of their life or already at this point post patent expiry that are still kind of within their portfolios. And many of those are kind of no growth or negative growth. And so the entirety of their business may be slower growth, even though they have some pretty significant growth assets within their business. But I would say that ultimately the important thing is every one of those companies and every one of the leaders.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Clinical benefit that hopefully and importantly are addressing unmet medical needs. That's all super important and that is at the core defining the strategies for these various companies. Ultimately, if you think about the recent transaction activity that you can point to across the industry, every participant in the industry, every major company understands that at the end of the day, the most important thing is to have as many products as possible that are delivering that differentiated clinical benefit and really contributing value to the system. And if you can have as large of a portfolio as possible or as high a percentage of your aggregate portfolio of product offering as possible, then you are going to be very well positioned regardless of how things ultimately play out.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“Potential post election. Now, the problem is it can either be relatively benign for participants in the industry, for pharmaceutical and drug companies in particular, or it could have a lot of detrimental impact. And the problem is nobody really knows for sure, and we won't for some time to come. And so that creates a general risk aversion from an investor perspective that is certainly casting a shadow over the industry right now. Now, from an executive's perspective, When you're sailing into uncertain waters, it no doubt affects how you make your own decision making and setting course for your organization. But I'd say one thing that ultimately is core to every strategic discussion that we're privy to is it's really around understanding that innovative pharmaceuticals or innovative therapeutics is the core value proposition in the industry for drug companies. And so to be guided by developing drugs that are novel, that have differentiated”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“They're worried about the elections, which is the uncertainty as it relates to healthcare policy here in the US in 2020 and beyond. And so, of course, drug pricing and sort of any legislative intervention on drug pricing is front page news. It's top of mind. It's being discussed each and every day. And as the election cycle continues to grind on, it is a topic that is getting lots and lots of airtime and probably the volume on that debate or that dialogue is going to continue to get louder. There are different views as to how to affect drug pricing. Obviously, there's a couple different bills with taking different approaches. My own personal assessment is it's, and I think I'm not alone in this regard, but I think a lot of people think that it's unlikely to either or some variant of those are likely to be enacted before the election. I think it's low likelihood, but very likely as the election cycle plays through, it is reasonable to assume that there's some form of legislation that is”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT
“I would say the general theme is trying to set course in an otherwise unpredictable, highly uncertain world as it relates to the macro environment, certainly as it relates to markets, and then ultimately specific dynamics that are affecting the healthcare and pharmaceutical industry. And so global uncertainty, trade policy and trade war invariably permeates and causes a level of uncertainty generally that is making it difficult to set course for, I'd say, any organization, but certainly for healthcare companies and certainly for pharmaceutical companies. That, of course, bleeds into markets. As the markets, the equity markets from a broader industry perspective continue to chug higher. The equities environment for healthcare companies has also been pretty choppy. For example, biotech companies have sold off pretty materially pharmaceutical companies have had some multiple compression. Say the general mindset as we're hearing it from institutional investors.”
2019-11-18 · Goldman Sachs Exchanges · How Are Healthcare CEOs Steering Through Uncertainty? · IDENTIFIED FROM THE TRANSCRIPT