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Investor presentation: 3 common mistakes to avoid

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Biotech and pharmaceutical companies have a unique growth trajectory compared to other industries. They require a lot of capital and years of trial-and-error to get their drug product to market. Those companies choosing to raise public capital encounter an additional challenge: frequent investor presentations at roadshows and investment conferences to drive up their stock price.

 

Through years of preparing fundraising and public investment presentations for life science and healthcare companies, Theoria Creative has become familiar with the smallest nuances that make the biggest difference. Below are three common corporate investor presentation mistakes life science companies make.

MISTAKE 1: FORGETTING ABOUT PATIENT STORIES

The purpose of most biotech and pharma companies in the industry is to improve the lives of individuals with debilitating or rare diseases. This mission — to help people — is a story worth telling, unfortunately when it comes time to present to potential investors, the important point often gets buried in the investor deck under complex science and data.

“Life sciences companies are so focused on the data they report, they often downplay the important role their products play in the difficult lives of patients,” Theoria Founder & CEO Oksana Bovt explains.

Highlighting patient stories is crucial when pitching to investors because it helps the company put data into perspective while creating the emotional connection necessary to maintain audience interest.

Leading with the patient’s narrative and explaining how their quality of life will improve can bridge the gap between scientific technicalities and the real-life experiences of patients. Whether your life sciences company works with rare diseases or well-known conditions, your case should be supported by research and statistics, however it is the patient’s story that will be remembered.

For Theoria Creative client, Catalyst Biosciences, the storyline improved audience engagement at investor healthcare conferences. Showcasing the transformative effect their therapies will have on hemophilia patients, helped make their mission clear and cultivated a deeper understanding of the presented data.

MISTAKE 2: FAILING TO SIMPLIFY YOUR SCIENCE

Often our daily work becomes so familiar we lose the sense of what is “common knowledge”. When addressing industry outsiders, it is easy to wrongfully assume they understand the science behind your work. It can be a million-dollar mistake to make this assumption when pitching to potential investors.

While healthcare investors don’t need to know the ins and outs of your scientific hypothesis, molecule structure, or therapy design, they do need to understand enough to see value in your company’s proposition.

The key to effective communication is clarity. Simplify, and then simplify again. Use common analogies and examples in your explanation. Visit our presentations page to see how we simplify complex scientific information.

Theoria Creative client, Apellis Pharmaceuticals, knew they were too immersed in their research to properly explain it to an uninformed audience, so they enlisted the Theoria team for help. Theoria’s perspective enabled them to translate their research into the clear messages necessary to create a compelling presentation, ultimately helping Apellis achieve their financial goals.

MISTAKE 3: MISSING CONCLUSION TO YOUR TRIAL DATA

Clinical data is not always straightforward. In the biotech industry, it’s not uncommon to receive unpleasant results in clinical studies that actually still substantiate the scientific hypothesis and provide positive feedback on the company’s product or service. While a scientific audience can immediately see this through the data, you can’t assume generalists — your potential investors — will be able to.

Clinical trials are huge milestones in the development of any life science company. Trial outcomes often trigger gains or losses in stock prices for publicly owned companies, and thus, dictate the success or failure of the company.

No matter how obvious the trial results might seem, always conclude the outcomes of the clinical studies in your pitch deck. It is too critical of a component to leave to chance — misinterpretation of your clinical trial results can be a very costly mistake for biotech companies.

These common investor presentation mistakes are easy to miss for companies immersed in complex work. Theoria Creative provides an outside perspective to make sure you avoid these corporate presentation gaffes while also helping to pinpoint key messages and emphasize differentiating factors. To learn more about how we can help drive your company forward, contact us.

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ABOUT:

At Theoria Creative we bridge the communication gap for our biotech and life sciences clients, enabling them to clearly and succinctly articulate their unique message and value when raising funds, soliciting partnerships, pitching at roadshows, or presenting to prospective buyers.

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