Biotech investor relations is a vital component of success for any company in this sector. Most will hire a specialist firm, like LifeSci Advisors, in order to ensure that this area gets the focus it deserves from trusted professionals. Most of the people who work in investor relations are former biotech executives themselves. Their experience provides them with unique insights into the issues that companies deal with and the things that investors need to hear. They have been there in the trenches so they know exactly what could go wrong and how to prevent them. These IR professionals are typically knowledgeable in one or more of the following subjects:
Science
A look at the profile of investor relations experts will reveal degrees in science including biology, chemistry, medical technology, biochemistry, and other relevant courses. This provides them with a solid background that they can use to understand the technical details of every project. This also allows them to distill the concepts into simpler terms so that investors who may not have as deep of scientific expertise can still get a firm grasp of the business. They are able to bridge the gap between the actual scientists working in the labs and the people who are taking a risk by keeping the resources flowing into the company.
Finance
At least one person in the IR team needs to be an expert in finance. After all, this is a business that requires a lot of money. Science alone cannot move the company forward. There needs to be prudent allocation of resources, sensible financing for equipment acquisitions, and negotiated payment arrangements. Large companies may wish to go public and offer shares to raise funds. They might also consider buying up smaller companies that can provide strategic advantage including valuable intellectual properties, talented scientists, and many more. These big moves require strategic planning to make sure that the company remains financially strong.
Management
Management is another strong suit. After all, they did serve as executives in their own companies in the past. They know how to handle an organization and how it works from the bottom up. This enables them to tailor their messaging to every level from the rank-and-file employees to the executives and the investors that keep the operations going. They are experts in reading people and what they need in order to do what they have to do. They know how to handle crisis situations effectively to protect the brand’s reputation and restore investor confidence.
Biotech investor relations is an incredibly complex and delicate work that requires nothing less than multi-disciplinary expertise. Companies must seek out professionals with decades of experience in this industry if they wish to have a steady hand guiding their strategic relationships with key business partners. They must be able to attract investors and retain their confidence through the inevitable ups and downs. It often takes years before any product reaches the markets and many hurdles will be there to prevent this. Good investor relations can help keep the ship steady until it gets to the destination.