Five Tips for Getting Started with IR Social Media

May 9, 2013

Are IR pros ready to get social?

Uncertainty has kept many investor communicators on the sidelines, but now may be the time to review how social media can strengthen your IR outreach. On April 2, the U.S. Securities and Exchange Commission (SEC) issued a press release stating that companies may use their corporate social media accounts such as Facebook and Twitter, “to announce key information in compliance with Regulation Fair Disclosure (Regulation FD).”

This new guidance is similar to the guidance issued in 2008 which addressed the use of corporate websites for disclosure purposes. Individual companies are free to decide if the use of social media for material disclosure is appropriate but only after a careful Regulation FD analysis. The guidance emphasizes the importance of issuers examining “rigorously the factors indicating whether a particular channel is a ‘recognized channel of distribution’ for communicating with their investors.”

The NIRI publication, IR Update has reported that some investor relations officers have voiced their support in favor of using social media to disseminate their message to larger investor audience. The most obvious manner in which these tools would be employed is through use during webcasts and, conference and earnings calls. Some companies are currently testing the water by using social media to facilitate Q&A before calls or to post tweets during calls.

This is not to downplay the need and importance of traditional SEC filings and wire services. These channels of information distribution serve an important role and should continue to receive the utmost attention. In fact, IROs have noted that we are only in the initial stages of using social media for IR purposes; nonetheless there is an acceptance that this important channel is here to stay. This is evident in one IRO who tweets during conference calls to inform those analysts and investors who either can’t attend the call or obtain real-time access to the transcript. A poster child for the integration of social media into the IR world is eBay’s IR representative. The internet giant’s IR representative posts to the company’s blog a notice that he will be posting real-time blog posts and Twitter updates.

Here are a few thoughts on how to employ social media strategies for IR audiences.

1. Ensure you have the best set of partners on your team. Stepping into the social media practice takes time, effort and a plan.

2. Allocate resources toward social media in 2013, even if it is to assess the need, develop a policy and applicability for your company, its reputation and brand attributes.

3. Partner with your disclosure team consisting of legal, regulatory, marketing and clinical teams to develop your approach for SEC and regulatory compliance purposes.

4. Start small. Monitor what others IROs are doing and learn from others both in your industry and those who are successfully practicing these techniques in other sectors.

5. Build your case. Show your management team examples of companies that are employing social media for IR purposes. Your IR and communications agency partner can do this for you. Then, determine the best approach for your company based on target audience, market cap and reach.

Resources:

SEC Press Release:

www.sec.gov/news/press/2013/2013-51.htm

SEC Report of Investigation:

www.sec.gov/litigation/investreport/34-69279.pdf

SEC Interpretive Release on the Use of Websites:

www.sec.gov/rules/interp/2008/34-58288.pdf

NIRI Standards of Practice:

www.niri.org/standardsofpractice

NIRI will incorporate this development into its planned 2013 revision of the “NIRI Standards of Practice – Disclosure.”

Click here for a PDF version of this Executive Alert.

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Posted by donnalavoie

Life Science Communications: Online 10-K Wrap Time; Update on the Lastest from NIRI

January 31, 2013

It’s the end of January and many communicators are readying themselves to produce their 10-K wraps.  CFO Magazine reported on a recent NIRI survey that said that electronic annual report budgets have grown 41% since 2010 and 44% since 2008, while budgets for printed reports have shrunk during the last 20 years.  In this survey, NIRI reported that the average total budget for the online version of the annual report, including all aspects of production was $15,330 in 2012.

Jeff Morgan, NIRI chief executive officer states that iPads and other tablet devices are driving the increase in the electronic side of 10-K wrap development.  Morgan said that companies are still producing printed versions of their reports because shareholders still expect it.  The median print range is 5,000 copies or less compared with10,000 to 20,000 copies over the last four years. 

For more on the online 10-K wrap, please check out my blog post: Life Science Communications: It’s a 10K Wrap!

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Posted by donnalavoie

So many business cards, so little time

January 24, 2013

Reaching out to new contacts following the JP Morgan Healthcare Conference and others

Congratulations! JP Morgan has come to an end, and we now have the time to reflect on a successful week. Between attending meetings, running up and down the hills of San Francisco and networking over cocktails, we do hope you had a productive and successful week.

Now that you are settled back in the office, it is time to reach deep into your pockets and the bottoms of your bags to gather all the business cards acquired over the past week. Whether you have ten cards or one hundred, each contact has the ability to create new opportunities for you in the New Year.

Below are a few quick steps to ensure a productive outreach with those new contacts:

  • Enter contact information in your company’s database, ensuring that they receive all recent company news and updates
  • Add notes describing when/where you met that, what was discussed, and any other related information
  • Conduct follow-up: send a brief email
  • Connect on LinkedIn with relevant parties

If you are in fundraising mode, it is important to assign a category and priority to your targets.  At LaVoie Group, we take pride in providing our clients with access to the right mix of investors, analysts, bankers and media. When it comes to conference planning and meeting coordination, we have the relationships that matter, saving you time and allowing you to prioritize your schedule.  At JP Morgan, our client deliverables included, but were not limited to: targeting and aligning investors and optimizing investor schedules, message development and execution of the investor company story and logistics. Please don’t hesitate to reach out to us with any needs your company may have.

Best of luck in this new year of opportunities!

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Posted by donnalavoie

JP Morgan 2013: Optimize Impact

December 7, 2012

Each December as we trim our trees and family and friends join together to celebrate the merry season, we imagine what the new year might hold for our companies – unprecedented growth, new partnerships, a successful fund raise? The possibilities are endless!

Then reality hits and it’s more like a scene from National Lampoon’s Christmas Vacation. The dog knocked the tree over, half the lights are out and JPMorgan is looming.

With the industry’s most important annual and ancillary conference approaching, we thought it timely to provide a few reminders about what you can be doing to make the meeting a success for your management team.

1. Dust off that presentation. What’s new? Why is your story relevant now? It’s likely your investors have heard your presentation at the last few conferences. JPMorgan is the ideal time to rejuvenate what might be stale and kick off the new year. Take a fresh look at the story line, messaging and visual content and make some changes. With so much competition for share of voice, it’s important to make an impact with your presentation – even if you’re only using it for one-on-one meetings.

2. Not invited to present at the big show? There are options. During the week of JPMorgan, there are ancillary conferences happening that are great alternatives for private and smaller public companies not invited to present at JPMorgan. BioTech Showcase and OneMedForum each have a great turnout of both investor and business development attendees. It’s worth considering presenting to tell your company’s story to a new crowd.  Contact us to obtain the LaVoie Group preferred spot.

3. Pitch your top targets for meetings. This one is for the public companies presenting at JPMorgan. Sure, the conference will set you up with a great schedule of one-on-ones. But that doesn’t mean you’re limited to just those meetings. Set your own list of targets and outreach for meetings to supplement what the conference is scheduling. This will help you maximize your investment of time in San Francisco.

4. Build news flow prior to the meeting. If possible, try to create some interest around your company’s story leading up to January. Again, with so much competition for attention, anything you can do to stand out will help.

5. Save some time for media. Identify what media might be at the conference and interested in your story. Use this as an opportunity to pitch a particular story, or set up introductory meetings with targeted reporters.

Between the meeting scheduling and rescheduling, presentation development and revisions, we do hope you enjoy your holidays with friends and family. We’ll see you in San Francisco in January!  Watch for our next blog on how to create compelling investor presentations.  Contact us with any questions or if you simply need help!

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Posted by donnalavoie

Building Your Life Science Communications Through Analyst Days

September 6, 2012

Research confirms that Analyst Day events are not always stock price drivers, but they are important to building relationships and your communications & IR program. We conducted research with a handful of leading life science companies that hold regular Analyst Days either annually or every other year. Here is what we learned:

  1. Location. While Boston is becoming a desired location for conferences, analyst and one-on-one meetings, NYC is still the standard location. Companies we talked with tried Boston and found that the webcast attendance increased while the on-site interest declined. All of the companies we spoke with that had events in Boston or in other locations (at a company site) felt that NYC was the most desirable location unless there was a compelling reason for another spot.
  2. Four-hour meeting. A four-hour meeting time was consistent, with a split between a morning breakfast and an afternoon lunch meeting as the norm.
  3. Spokespersons. Besides the CEO and CFO, most companies typically bring in a CMO, COO or business unit head. However, it depends on the theme and venue. Many talked about using a KOL to provide investors with another view point to round out the company spokespersons.
  4. Frequency. Many companies opt to conduct Analyst Days every 18-24 months, but companies with an active milestone calendar have meetings more frequently.
  5. Reaction. Unless there is a major news event or guidance change, no companies experienced a major change in stock price. Although some did note an increase leading up to the meeting.
  6. Materials. The most effective are product marketing materials, thumb drives with slides and select publications and any other background information that may make the story more interesting.
  7. What not to cover. Early-stage assets that are not of interest to the Street.
  8. Other. Provide substantial time for Q&A and informal socializing with management. Never underestimate the power of relationship building.

Post-event feedback. Consider reaching out to obtain formal feedback as a benchmark to ensure you made the mark. It will help in future events.

 

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Posted by donnalavoie

LaVoie, Leading “The Way” in Life Science Communications

August 3, 2012

Did you know that the surname “LaVoie” comes from French origin and is translated to mean “the way”?

Here at LaVoie Group we are always striving to lead the way in life science communications. From client services to improving ourselves throughout the office, we are always trying to lead the way to something bigger and better throughout the world.

In celebration of the current Olympic competitions, I thought it would be proper to say that having teamwork throughout the workplace, and at home, we can all be privileged to change lives. Each night I go home and watch these amazing athletes inspire billions of people around the world, and then I realized that we all have the potential to inspire and change the world that surrounds us.

At LaVoie Group we pride ourselves in leading “the way” for pharmaceutical and life science companies. Each day I see global initiatives that pave the way for the future throughout the life science and pharmaceutical world. It is truly unique to see these companies start from the ground up and continue to create medicines and devices that are life changing. Knowing that these complex creations came from such a simple aspiration to better the lives of those struck with life threatening illness is truly inspiring. It is amazing that one simple thought can transform into a life altering event across the globe.  We pride ourselves in having a small hand in helping tell the story of these great companies while working with them to communicate their milestones to their key stakeholders.  l, obtain media attention, attract funding and anything else they may need in order to get their product into the hands of those that need it most. It goes to show that by working together, we can lead “the way” to a better world.

I want to close with saying that you are not required to be an Olympic athlete in order to inspire, and to change the lives around you. I truly believe that we all need a little “LaVoie” in our life. We all need to see “the way” and help lighten “the way” for those that do not see it. There are limitless possibilities to what we all can achieve, together. Let’s each start by leading the way.

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Posted by donnalavoie

Life Science Communications and Investor Relations

July 24, 2012

Are there differences in managing communications and IR across all industries? Are the basic skills that you would apply to other industries transferable to biotechnology?

Building Financials

All biotech companies require substantial capital to fund product development and are subject to Food and Drug Administration (FDA) regulation. Obviously, companies in all industries need access to capital, but biotechs generally burn millions of dollars in research and development of a product over a five to ten-year time frame. Capital is one of the key components to their success.

In biotech, financial messaging is important for companies that have products on the market. For the majority that do not, the emphasis is on cash position and level of R&D spending. The financial metrics are often secondary to the inherent strengths of the company’s future product pipeline and the markets it will serve. So the IRO’s expertise focuses on articulation of the company’s technology and clinical trials.

Who’s in Charge

For small companies, the CFO may handle IR, supported by medical officer to augment the data story.  For companies with marketed products, it is easier since the IR function can integrate with marketing and medical affairs to bring the story to life.  The job requires an integration of experience in investor relations, public relations, corporate communications, and an understanding of the regulatory process as well as life sciences. The role can also include interactions with other communications, marketing and IR officers at pharmaceutical companies with which the company has partnerships.

When a biotech company matures and becomes an operating company, the IRO’s functions usually split. At that point, the skills required are the traditional ones of most product companies. Many think that if IRO’s possess the required marketing and financial skills, they can perform the function in any industry. However the nuances of the messaging and tactics are different in biotech. This is because a biotech company’s story is event-driven, based on things such as a partnership with a pharmaceutical company, a FDA Advisory Committee meeting, or the release of clinical data.

Communicating to Investors

Almost everything is material to these companies, and the release of scientific and clinical information is tricky. It is especially challenging since the adoption of Reg FD. When you do not have earnings, there are many gray areas where the regulations are not specific. As with most companies these days, biotechs webcast almost any group meeting that includes members of the financial community. This is sometimes viewed unfavorably by large pharmaceutical partners, whose primary interests are often focused on the release of data from a marketing perspective. In the past I have found myself in the middle of this balancing act. The pharmaceutical company is considering how the medical community will perceive the data and the biotech company wants to get the message out to the financial community to support the stock or to comply with Reg FD.

Companies also need to balance the need to communicate with the constraints of FDA oversight. Thus an understanding of life sciences in addition to an understanding of the regulatory process are needed if you are to communicate successfully to the Street and keep your company out of trouble with the FDA and the SEC. The IRO has to speak their language.

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Posted by donnalavoie

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