Outline of a Successful Biotech Investor Relations Strategy

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For a biotech company to succeed, it needs more than an excellent product and a capable team. Its executives need to know how to bring their stories to life with investors, and they need the right investor resources on hand―resources like honest advisors, seasoned speakers, and communications materials.

Biotech executives can put themselves at a disadvantage by adopting a one-size-fits-all approach to investor relations. It’s important to be honest about your goals, your strategy, and your shortfalls. The plan outlined below is simple enough to be implemented right away―and it will help your company reach its financial goals while maintaining its integrity and respect.

Step One: Develop a Detailed Strategic Plan

Your first step in developing a sound investor relations strategy is to develop an overall strategic plan for your company. You will need to define what the mission of your biotech company is, describe its core values, and define its short- and long-term goals. Once you have defined your overall mission and goals, you need to define your target investors. You should know your ideal investor profile and the amount of money that you would like to raise from investors. Your next step is to determine the resources that you will need―both human and financial―to complete these tasks.

Step Two: Develop an Effective Communication Plan

Once you have completed your strategic plan, it’s time to create a detailed communication plan. This plan should include all of your investor relations-related activities for the upcoming year, such as releases, press releases, road shows, and presentations. You should also include a timeline outlining when you will be releasing each of these documents/activities. Your final step in creating your communication plan is to select an appropriate method for communicating with investors.

Step Three: Recruit an Investor Relations Manager

The next step is to recruit an investor relations manager. It’s important that you hire someone who has a good understanding of your company and its goals―someone who can effectively communicate with investors and potential investors. Some companies choose to employ their own investor relations manager, while others choose to hire an external firm. Examples of firms that specialize in investor relations include Genzyme Investor Relations, BioMed Investor Relations, and Cambridge Medical Investors.

Your company’s overall success will be based on the quality of your investor relations communication plan and the people you have involved in your investor relations program. If you follow these three simple steps, your company will be well on its way to building strong investor relations necessary for long-term business success.

In order for a biotech company to succeed, executives need more than just an excellent product and a capable team. It is important to be proud of your company’s progress and transparent about its setbacks. The plan outlined below explains how to communicate with investors in order to reach your biotech goals while maintaining your integrity and respectability.

After developing the strategic plan for the company, you should develop a detailed communication plan. This should include investor relation-related activities like releases, press releases, road shows, and presentations that are expected in the upcoming year. Possibly even hiring help from LifeSci Advisors. When completing this step it is also important to select an appropriate method for communicating with investors.