DIAGNOSTIC INSIGHT
What advice to you have for IVD companies in dealing with investment communities?
CHOW
We work with a number of young, start-up companies. Sometimes they are pre IPO or have recently gone public. Over the years, we have learned that the investment community by and large are very savvy. Many are staffed with scientists and physicians that can help them interpret information. We also have found that they are all busy and have very short attention spans. The biggest challenge that we see with the principals of start-up companies is getting them to understand that they are trying to package and sell their company and therefore they have to develop fairly focused messages. It is very tempting for them to say that their product is really great and that they are going to be all things to all people. These are the approaches that cause them to lose credibility with the investment community.
DUNN
Lena is right on. They have to be able to say, in less than 30 minutes, why and how they are going to make money, not why their technology is based on brilliance.
BERNSTEIN
From a tactical standpoint, companies that have just gone public or are preparing their annual report tend to want to go for the glitz and give it all they've got. We find that investors evaluate how a company spends its money partly on how they spend on marketing communications. We work with our clients to really craft the message to the appropriate audience and also to make certain that the presentation of the science and technology is appropriate without being over the edge, because this can send the wrong signals.
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