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Demonstrating Execution: Trial Success Supports New Model
Demonstrating Execution: Trial Success Supports New Model

Articulating and reinforcing messaging following successful pharmaceutical trial

The Situation

Following intellectual property litigation with a negative outcome and the introduction of a new president/CEO, a pharmaceutical company introduced a new business model featuring an orphan drug it acquired via a merger. The primary endpoint in its Phase 3 trial in Europe and Canada was non-inferiority (+/- 5%) versus a commercial product with a less-favorable dosing regimen. Wall Street expectations were that non-inferiority would be demonstrated with numerical superiority; whereas actual results showed non-inferiority with numerical inferiority. The company also had a drug in a Phase 2 trial in the U.S. and Canada that addresses a potentially larger market.

LHA’s Solution

  • Held investor conference call with news announcement of Phase 3 results.
  • Clearly and consistently stated “met primary endpoint” and “showed comparability to the 2x/day gold standard therapy,” with maximum transparency to results given publication strategy.
  • Contacted all analysts, Top 10 holders, best prospects post-call for feedback and to reiterate messaging.
  • Informed clinicians to put results in context of ~50% patient non-compliance and need for drug rotation.

LHA’s Results

  • Attracted ~415 conference call participants and featuring 4 clinicians.
  • Received favorable traction with analysts whose reports stressed “met primary endpoint,” and demonstrated their focus was on Phase 2 results expected later in the year.
  • Generated favorable trade media coverage, including “successful” in one headline.
  • Raised $71.8 million (gross) @ $10.40/share, including full overallotment exercise.
  • Recovered stock price to ~$12 following news of the fund raise, subsequently ~$20.

LHA Investor Relations is a leading strategic IR consulting agency. We partner with public and private companies to craft and implement effective, custom-designed IR programs that incorporate industry best practices. We are a leader in investor relations for small-cap companies for over 40 years. We go beyond in implementing IR programs that build trust and transparency between our clients and Wall Street. We support capital market objectives by increasing awareness, managing expectations and enhancing reputations.

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