Biotech Investor Preferences Shift - Companies Need to Walk Through Their Journey to Commercial Success
Private biotech companies, even those in earlier stages, must have a compelling commercialization story to attract investor interest. Investors prefer backing companies with strong scientific foundations and robust clinical pipelines. They also increasingly expect companies to articulate a clear story about the unmet need in their target disease and the role their medicine will play. Describing the path to commercialization is crucial. This can be a challenging exercise, but companies are failing because they are not able to do this effectively.
Fundraising Best Practices (abbreviated checklist) -
Planning and Strategy:
Ø Develop Multiple Plans: Always have a Plan B and Plan C ready, especially for clinical pathways.
Ø Credible Commercialization Pathway: Ensure a clear and credible commercialization pathway.
Ø Clear Storytelling: Companies often fail due to unclear communication of the unmet need and the role of their medicine. Simplify for investors but add nuance for disease experts.
Communication and Storytelling:
Ø Tailor Communication: Differentiate your messaging for investors (simple, clear) versus disease experts (nuanced, detailed).
Ø Dual Presentations: Have two versions of your presentation – one scientific and one financial.
Ø Highlight Commercial Opportunity Early: Emphasize the commercial potential early in the process, not just the science.
Ø Evolve Your Story: Continuously update and adapt your story as your project and the external environment evolve.
Team and Capabilities:
Ø Highlight Capabilities: Clearly articulate why your team is the right one and what unique skills they bring.
Ø Focus on Unfair Advantage: Identify and communicate your company's unique advantages and strengths.
Ø Capabilities Across Functions: Highlight capabilities in critical areas like CMC (Chemistry, Manufacturing, and Controls), supply chain management, and other operational aspects.
Commercial and Market Considerations:
Ø Early Market Planning: Integrate commercial thinking from the preclinical stage.
Ø Scenario Planning: Conduct scenario planning to understand how your product will compete in the market.
Ø Understand the Market: Research the current therapeutic market, treatment guidelines, reimbursement decisions, and competition.
Safety and Manufacturing:
Ø Focus on Safety and Manufacturing: Address safety concerns and manufacturing capabilities as top priorities.
Long-term Vision and Adaptability:
Ø Adapt to Changes: Be ready to adapt your story and strategy as external circumstances and market trends change.
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