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| Mark Corbae |
Emerging biopharmaceutical companies are great examples of the maxim regarding big challenges and bigger opportunities. Focused on pioneering new drugs or other innovations in life sciences, they embody the potential for great business success and even more significant rewards for healthcare. At the same time, they need to address issues related to being a young and developing organization: securing financing, building teams, preparing for the regulatory process, entering the marketplace and more. These factors present a unique situation when considering public relations programming, particularly during a difficult economic environment such as the one faced by the biopharmaceutical industry in recent years.
Following a record number of IPOs in 2021, the past few years saw far less investment in emerging biotechs, creating a climate of uncertainty and a struggle to obtain financing for many. In addition to the economic challenge, many emergent biopharma companies have limited staff, a small number of corporate milestones to date and potentially little clinical data to use as a foundation for public relations programming activities. These circumstances, understandably, drive some companies to take a short-sighted view when planning public relations, focusing mostly on near-term tactics. Little consideration may be given to thinking about scenarios for the organization’s future and what that means for public relations. The reality is that the strategies companies should employ now, even—and especially—during economic difficulties, are the same to support scenario plans for the long term.
It’s critical to launch PR programming as early as possible in a company’s lifecycle to create awareness, establish a voice and presence in the industry, form productive connections with key stakeholders and educate key audiences about their science, management approach, clinical pathway and value in the marketplace. Seeing these objectives come to fruition takes time. Beginning to formulate a public relations strategy when a company is on the verge of an IPO, for example, isn’t the best strategy for success. Companies need to be proactive in their communications, build on the momentum created and continue a steady path in telling their corporate and management story. Pre-IPO communications, for example, paint more than a financial picture: They inform investors and other influencers the company’s core values, the priorities of its leadership and what drives its success.
| This article is featured in O'Dwyer's Oct. Healthcare & Medical PR Magazine |
These same public relations strategies are important for whatever scenario is planned for the future, and companies that see themselves on the path to success prepare now for those next steps. BioSpace recently reported that both IPOs and M&As are starting to see a rebound, particularly with some larger pharma companies’ interest in young biotechs for their innovation in certain targeted therapeutic areas. Waiting to invest in needed public relations isn’t an option.
Scenario planning—for a future IPO, merger or acquisition, strategic partnership, financing or licensing agreements—is an important aspect of a biopharma company’s overall business plan and has a significant impact on how the organization and its executives need to be positioned in the industry and perceived by stakeholders and influencers. As such, the business factors that are important to a successful future should be considered from the beginning when developing an integrated public relations program.
The ultimate goal of these potential outcomes for the company is to provide a positive return on investment for early investors, founders and shareholders while enhancing or progressing the impact of the company’s products and services in the healthcare industry. Whatever strategy, or multiple strategies, a company is formulating will have direct impact on the focus, approach, audiences and timeline of a public relations program. Some important elements of a PR program include the following.
A strong value proposition. Clearly articulating the value of the science, drug or therapeutics of the company is typically part of the positioning and messaging process in a PR program and is important to future scenarios, whether taking the company public, being acquired or forming strategic partnerships. Ongoing communication about the company’s strategic plans and the progress being made may enhance valuation and help manage expectations.
Early financial communication. Many early-stage or pre-IPO biopharma companies have no revenue or profit yet, but communicating the company’s story, the value of its therapeutics and milestones to date serve as a way to keep Wall Street informed and engaged. Bringing in investor relations to the PR process early can help create awareness and raise the profile of companies from the beginning, setting the stage for acquiring financing and telling the company’s financial story as it progresses.
Partner communications. Engaging with industry opinion leaders, leading public and private healthcare organizations and third-party experts provides objective endorsement of the company’s business, mission or products, helping to validate its story and gain further market access and exposure. Forming industry relationships sets the path for future potential partners, interested buyers or marketing agreements.
Executive communications. Investors, partners, employees and other stakeholders need to hear directly from management about the company’s financial picture, clinical data, product pipeline, etc. Credibility and confidence are important. Positioning senior executives as thought leaders and industry experts is one way to help achieve that. Demonstrating that management and its team can adapt and move forward inspires confidence that the company is on the right path.
Reputation management and crisis response. From a clinical trial death to cyber threats, any company can find itself suddenly thrust into a crisis due to internal or external factors. Protecting the organization’s reputation is an important part of helping a company remain a viable candidate for a successful exit down the road. Providing timely, clear and accurate information about the company on an ongoing basis—and particularly in a crisis—is crucial to preventing fallout from unhappy stakeholders. Having a productive existing relationship goes a long way toward mitigating issues that could have a detrimental impact on credibility and confidence.
It’s clear that an effective integrated public relations program encompasses many elements that benefit a company’s future strategy now, as well as setting the stage for changed economic or market dynamics. Amid the excitement and challenges of entering the biopharmaceutical market, it’s a good reminder to think about and take action to help effect a successful exit in the future.
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Mark Corbae is a Managing Director at ICR Healthcare.
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