The Case for Dual-Path Communications in Life Sciences
How Biotech and Life Sciences Companies Can Communicate Effectively with Both Investors and Strategic Partners
All biotech companies should be contemplating a “dual path” of investor-driven capital expansion and M&A at all times of their corporate evolution. M&A activity in biotech has ticked up as of late and it is a good reminder of how critical it is to consider both the strategic audience as well as investors when contemplating your investor relations and communication strategy. By focusing on the needs of investors alone, you can miss opportunities to attract the interest of potential strategic partners who often have priorities that are quite distinct from the market. Here are some ideas to ensure your communications strategy and content works in both the strategic and investor contexts.
Think about the “big picture”. Strategics have a more holistic view of the industry and significantly longer time horizons than most investors. Take a step back and make sure your messaging and content includes landscape context and opportunities for long-term value creation.
Lean-in on innovation. The advantage of smaller, more agile biotech players is their ability to innovate. Be clear around your specific areas of expertise and areas of investment, and the potential benefits and outcomes of your approach including areas like speed, increased probability of success or capital efficiency. Intellectual property and technical capabilities are important assets to showcase
Highlight optionality. When communicating your strategy demonstrate flexibility to build your company and achieve your corporate goals multiple ways. Convey momentum and willingness to adapt to multiple business scenarios, not depend on a single path.
Understand your theoretical ROI. To meet their requirements for a return, acquirors are ultimately buying future revenue and associated cash flow streams. For pre-commercial companies it is important you do the work to understand your target patient populations and end-markets, so that you are able to highlight the commercial potential of your asset or pipeline – even at an early stage.
Understand their motivation. Understand the pain points and areas of focus for your most likely potential partners and position your assets or company as their solution. Make sure to provide updates on areas they care about, which may overlap or differ from what investors prioritize.
Strategics are always a key audience, and one that often sees value very different from investors. To maximize the interest of all potential sources of capital make sure your communications, including life sciences investor relations and broader communications, always consider how to make points around value, competitive differentiation and future commercial opportunity visible and compelling.