Ebb & Flow

JPMorgan's 23rd Annual Healthcare Conference last week could be summed up in two words: rational optimism. Rational because companies and investors both agree that valuations aren't going to spiral upward out of control anytime soon. Optimism because companies with good stories are still likely to find their stock prices spiraling up.

The theme is playing out both in the public and private spaces. First, the muted stock moves of public companies that presented at the conference could suggest the group is fairly valued (see "JPMorgan Effect"). But there's also the conviction that money is available, as a quartet of companies filed for follow-ons. ...