Struggling to convince Wall Street?
While investors are keen to capitalize on the potential within the biotech field, there’s strong competition for those dollars. Investor perception of value relates not only to investments in your company, but can also have an effect on stock price and a company’s ability to make a successful exit according to their defined timeline.
Many biotech CEO’s are finding it difficult to ‘package up’ their story to investors. When information is confusing or obscure, investors become spooked and companies are left with failed messaging.
3 Common Messaging Mistakes Biotechs Make:
- Communicating scientific data in scientific terms. Investors are looking for market value terms, not scientific terms. They may fail to see and understand the value your company is offering if the data isn’t presented in a way that explains the investment opportunity.
- Unclear goal definition. Describing ambitious goals without clear qualification of those goals. This leaves companies sounding out of touch with the value proposition of their compounds, medical devices or diagnostics and can create a perception of a lack of tangible planning.
- Not realizing that investors are customers too. All presentations need a purposeful brand tone, voice, tailored marketing content, and consistent brand experience.
Having a strategic plan for communications is essential for success. Using solid marketing principles, CEO’s can successfully craft their message and vision to effectively connect with their investor audience.
How to Rescue Your Investor Messaging
- Hold a guided investor messaging workshop with your leadership team. Clarify the message you want to give investors using language they can understand and relate to.
- Create a Brand Investor Communications Playbook that addresses your key statements, content strategy, how to message in quarterly reporting calls, and how your media/PR team will speak about your company.
- Define the messaging and tone differences you will use to communicate with each of your four audiences:
- Investors: Use market value terms and easy-to-understand product explanations
- The scientific community: Focus on research and results
- HCPs: Communicate your product’s value, accessibility, and results
- Patients: Connect with how your company meets patient needs
- Include your newly crafted clear investor value proposition statement in all of your investor-targeted materials, press releases, PR interviews, and financial reports
- For J.P. Morgan Chase and other investor conferences, ensure your booth presence reinforces the components of your Brand Investor Communications Playbook
Identifying and Attracting the Right Investors
While investors recognize the potential in biotechs, this doesn’t translate into investments unless they understand the purpose of your company and what’s required to turn potential into success from a financial viewpoint.
At the most basic level, they must see what you can accomplish and how it will work. Give every investor the best opportunity to identify and embrace the science of your company without using high-level, overly scientific, or ambiguous language. Aim for information that conveys both the science and the real-life applications of the research and its potential.
When investors can explain how your company’s product and results will turn investments into profits, you know your messaging is working.