Small-Cap Biotech Case Study

Small-cap biotechnology company with an upcoming pivotal Phase 3 data announcement

IR Challenge/Opportunity

Company A went public two years after announcing negative Phase 3 results for their lead product candidate. Post-IPO, the company had a limited number of shareholders, a mixed reputation on Wall Street and pending Phase 3 data for the same product in a new indication. Stern IR was retained initially to enhance visibility and awareness in advance of the announcement.

• Strategy
  • Build credibility and visibility on The Street
  • Educate investors and research analysts about the use of the drug for the new indication and the direction of the company
  • Lay the groundwork to create positive "buzz" around data announcement
• Tactics
  • Conducted broad proactive outreach to all IR audiences; scheduled numerous roadshows and lobbied for presentation invitations at several conferences in the months leading up to the dta announcement – secured 5 conference invitations in 7 months between IPO and data announcement
  • Hosted a successful analyst and investor day two months before the data was announced to lay the groundwork for the pending new; attracted many potential investors that were new to the story
  • Conducted extensive scenario planning and preparation for the announcement and managed all company communications so that they ere clear and digestible to The Street
• Results
  • Stock rose over 200% after the positive data announcement
  • Visibility achieved from our efforts allowed for a successful post-data follow-on financing 2 weeks later, raising over $30 million
  • Investor base more than tripled the following quarter