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Educating Investors about a New, Non-traditional Business Model
Educating Investors about a New, Non-traditional Business Model

Supporting new business model with enhanced communications and outreach

The Situation

A company built upon a traditional pharmaceutical business model featuring a nationwide proprietary salesforce selling approved drugs in oncology and pain management had not yet turned profitable. An activist investor pushed for a return of over $500 million from product divestitures. A new CEO was hired; the company paid a special one-time cash dividend and changed to a licensing business model featuring royalties, milestone revenue and materials sales, along with early stage R&D investments.

LHA’s Solution

  • Maximized disclosure in light of large pharma partners controlling the level of detail on licensed programs; product prescription data and sales forecasting supported by considerable competitive intelligence and research.
  • Positioned four significant acquisitions within strategic context.
  • Held five Analyst Days in New York and one in Chicago.
  • Arranged conference calls and receptions at medical conferences, all utilizing key opinion leaders.
  • Adopted “Fully Funded Shots on Goal” tagline with regular updates.
  • Highlighted pipeline with significant detail on website including by therapeutic area, by partner and by stage of development, as well as a detailed table on royalty rates and future product launches by year.

LHA’s Results

Following the implementation of the IR program, quarterly conference call participation grew at a slow but steady pace, analyst coverage increased from zero to six, the company’s market cap increased from ~$180 million to ~$1.6 billion, and the shareholder mix migrated from arbitrage to biotech with over 200 current institutional holders.

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 30 years. 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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