Biotech startups are hurting for money as investments in biotech startups start to decline. Biotechs need to think like marketers to cut through the noise and attract investors. It begins with a CEO who not only has a stellar medical background but understands how to get the company on the radar.
There are so many biotech startups right now that there isn’t enough money for them all to continue the development of new drugs. Even though pharma is in an “acquisition” mindset, they want drugs that have the potential to add significant dollars to their bottom line, not small niche compounds.
CEOs have to think like marketers to cut through the clutter with all the biotech startups out there. Here are some things small biotechs can do to cut through the noise:
1ne: It starts with your CEO’s reputation – Hiring a CEO with a dismal track record is not a good idea. The pharma industry is well connected, and people know about ex-CEO baggage. They have to have a tremendous medical background and be well connected and respected in the industry.
2wo: Clinical trial data releases need to coincide with major medical conferences. Medical teams should ensure that data in ongoing clinical trials can be released during major medical meetings and is strong enough to generate a buzz within the medical community.
3hree: Thought leaders need to be influential among the medical community – Just hiring someone who may be a top medical professional is NOT enough. It would help if you had someone who is effective and is trusted by others.
4our: Hire people in key positions who are well respected and have impeccable backgrounds.
5ive: Your business plan should not be overly optimistic; it should be realistic and have a better, best scenario.
6ix: Become the leading spokes-company for the disease state/therapy if you’re developing a new molecule technology or a medication for an overlooked disease state.
7even: Don’t hire too many people too quickly. One biotech had to lay off over 100 people because of a setback with the FDA. Hire people as you need them, not before.
Finally, having your CEO write articles for business publications is a good idea. The articles should not be self-promotional but instead, talk about the disease state and issues facing small biotech companies.