Biotechnology is a long game. Companies need to muster enough resources to stay in it and achieve the breakthroughs that it needs to succeed. This requires the support of multiple investors who are willing to provide the enormous funds for research and development. They have to stay onboard for several years and it is up to the company to make sure that this happens. Keeping biotech investor relations strong is a challenge. People are almost always overflowing with excitement in the beginning but interest wanes over time. Below are some of the things that expert manager or company such as LifeSci Advisors can do to strengthen the business relationship:
Set the Right Expectations
Relationship management is easier if it starts properly. Investors should have the right expectations from the very beginning. Companies must provide them with a realistic picture of what the business can do, what it hopes to achieve, how long it needs to get there, and how much resources it will take to leap ahead. The challenges of the project should also be plainly discussed including the direct competitors, the regulatory hurdles, the major equipment acquisitions, the technological gaps, the public perception, and so on. Investors can then be part of the problem-solving instead of being kept in the dark about the difficulties.
The investor relations team must communicate with transparency in order to build trust. They should tell investors everything they need to know at every stage in the product development. If something is amiss, then they will learn about it somehow. It would be better if the news gets to them from the company itself rather than outside sources. Most of the investors in this space have been here for a while and they know just how difficult it can be. They know the risks and the stumbling blocks. They do not expect things to be smooth sailing all the way.
Provide Frequent Updates
Investors deserve to get constant updates about the progress of the R&D. They should not have to plead for information. Companies should give them briefings on the current situation on a regular basis. This will depend on the case because some timelines are long while others are shorter. Some have many eyes on them because of their urgency while others can wait for years until the technology matures. The frequency will also depend on the nature of the research since some might take a while to produce reports with substantial data.
Give Timely Messaging
The messaging should be timely as well. This is particularly important when there are developments that merit immediate attention. This could be related to the product development, the government regulations, the public relations, the market movements, or anything else that could affect the business. Investors should feel like they are the first ones to know instead of being kept in the dark. Experienced biotech investor relations specialists are sure to act quickly in emergency situations. They can reassure all stakeholders and iron out any issues that might have unfolded. Investors are likely to stay on and keep the faith.