MEDIA & PUBLIC RELATIONS

A well run Public Relations (PR) effort will earn a company recognition and build credibility in the eyes of those whose opinions matter, including potential employees, customers, investors, thought leaders (e.g. physicians), and the media. The communications strategy should focus on conveying the company's position statement clearly and consistently to the proper audiences and to point out when the company has progressed in its mission. Towards this end, management must first decide on the position and mission statements for the company and its products. A position statement explains the nature of the company, while the mission statement explains the company's objectives. Here are examples:

A position statement: XYZ develops and sells molecular research reagents to academic and industry laboratories.

A mission statement: Leveraging both internal development and an M&A strategy, XYZ is dedicated to becoming a leading reagent provider to the drug discovery industry.

Develop a timeline of milestones and figure out which represent newsworthy business progress. Not all milestones are newsworthy. For example, merely announcing an IND filing sets the expectation that clinical trials will commence in a month; the company risks embarrassment if the FDA rejects the IND. Therefore, it would be best to wait until the FDA has approved the IND before issuing a press release. Credible milestones often involve third-party validation of the company's position and mission, such as publication in a peer reviewed journal, issuance of patents, initiation of clinical trials, financings, and getting partnerships or notable customers. Seek opportunities to do joint announcements with other respected organizations in lieu of separate announcements. Mark medical, scientific, and investor conferences worth attending or presenting at over the upcoming year (plan to submit an abstract as much as 8 months in advance for some).

To present your company in a professional manner, put together a Media Kit with a company overview, recent press releases, relevant publications, and management bios. Have camera-ready photos of top executives ready to send electronically. A corporate website that communicates your messages clearly and allows visitors to sign up to receive future announcements is also an important tool. For details on building a website go to: www.evelexa.com/resources/web_dev.cfm.

Reporters are increasingly skeptical and cynical of unproven technologies that have yet to be commercialized. Mainstream business publications may focus on biotech companies that have already been recognized by key trade publications (e.g. BioWorld, BioCentury, Nature Biotech, The Pink Sheet, Scrip) and local business publications. Therefore, when seeking mainstream exposure, lay the groundwork through local and trade press coverage beforehand. However, overexposure in the media is not always a good thing. The cover of Newsweek sets expectations that may be hard to live up to. Consider saving the 5 minutes of fame for when it is truly justified.

The company's PR strategy should manage the company's image in the local community and the public's perception of the company's position on issues, particularly if there is local opposition to animal testing or biotechnology in general. Depending on the company's focus and stage of development, it may also be useful to develop a relationship with disease-specific associations, foundations, or lobby groups, as they can be both vocal proponents and opponents of your agenda.

PRESS RELEASES

A press release is a basic PR tool. To issue these, one only needs an account with PRNewswire, BusinessWire, or another similar organization. You may select distribution by industry, region, and type of media. Depending on word count and whether you want to send the release only to local print media or to print/radio/television all over the country, the cost ranges from $100-$600 or more per release. Usually the leastexpensive biotech distribution channel will still include major online media such as Yahoo and BioSpace.

TALKING TO REPORTERS

The best way to get the media's attention is to pitch the story directly to reporters. Keep in mind that the reporter is not always the final decision maker. He or she may need to justify to the editor why the news belongs in the publication. Be familiar with each reporter's topics and audience and the general nature of the publication. The pitch has to get you in the door. Most reporters prefer to receive a preliminary pitch by email, followed by a well-timed phone call (it is best to know each reporter's preferences in advance). The email should be short enough to fit on a single screen and have a captivating subject line. If the reporter is interested, you can send 2-3 pages with a detailed description of the key news event, an overview of the company, and contact info for people inside and outside the company whom the reporter might interview. Keep the technology explanation relatively simple and define the market you are targeting.

You have the option of contacting the reporter in advance of a news event and offering the story under embargo, i.e. asking the reporter to wait until a designated time before issuing a story relating to the company's news. Whether the reporter breaks or doesn't break an embargo sometimes depends on their relationship with you. Also, if a reporter agrees to abide by the terms of the embargo but then sees another publication running with the story early, the reporter may decide to also break the embargo or, worse yet, not write your story and never cover your company again.

Publication deadlines will determine the best time to reach a reporter live on the phone. Always ask, "Is this a good time?" after introducing yourself but before explaining the reason for your call. Daily papers typically begin to file stories after 2:30-3:00 p.m., so those reporters should be contacted during the morning or early afternoon.

Weeklies file the stories by Thursday evening or first thing Friday morning. The best times to reach weekly reporters may be Monday, Tuesday, or Friday afternoon. Monthlies typically work 2-4 months in advance and pitches (specifically regarding planned news announcements) must be timed accordingly. Following editorial calendars allows you to pitch relevant news for an upcoming article.

Do not leave long-winded voice messages or call/email repeatedly unless there is something new to say. If a story is not well received, have a second one to pitch instead.

When speaking with a reporter, do not reveal anything you wouldn't want to see in print. Unless you specify that certain information is for background only, anything you say is quotable as the reporter heard it not as you said it. Nothing is ever "off the record". Stick to the company line whenever possible and try to deliver the key messages, including the position and mission statements. If you are asked a difficult question, either offer to get back to the reporter on it later or stick to the key message (even if it does not exactly answer the question). When discussing sensitive information, you must trust the reporter with whom you are working. Not every journalist will respect an embargo or your wish not to be quoted on something.

Do not take the accuracy of the reporter's final article for granted. It is highly unlikely that a reporter will agree to submit a draft of the article to the company in advance of publication. However, during your conversation with a reporter, you might ask the reporter to repeat back important points from the interview. At the very least, send the reporter a summary of your statements, biography, company history, references, and industry contacts that may serve as additional sources etc. The goal is to make it as easy as possible for the reporter to write the piece accurately, cutting and pasting statements directly when appropriate.

HIRING PROFESSIONALS

Management that is serious about implementing a communications strategy should work with a professional, either through an internal hire, an independent consultant, or a PR firm. For a small company, a consultant can serve as an on-call or in-house PR and Communications executive, handling media relations, issuing press releases, pitching stories, securing speaking engagements at conferences, and coaching management on how to talk to the press and public. Even at a rate as high as $250/hour, a consultant's services can be a bargain compared to a full-time hire.

However, a consultant may not have access to all the resources or media databases that larger agencies use. Going with a full-service firm makes sense if the company needs help refining its business and marketing strategies, prerequisites for an effective communications program. For example, some firms do extensive market research to focus a client's presentations on issues that will further the client's mission. An early-stage client may pay $50K - $100K per year to a firm for services that could include strategic positioning, development of key materials, and media relations activities. A major PR effort designed to secure general and trade media coverage of a key event, such as the publication of important clinical results together with presence at a medical meeting, might run $20K/project. Though expensive, creating and executing an effective PR strategy is worth doing right, especially if millions of dollars of startup capital are on the line.

INVESTOR RELATIONS

The goal of investor relations (IR), at a minimum, is to address the questions and concerns of prospective and current investors, as well as to get the company on the agenda of investor conferences, many of which are held by investment banks. In some respects, IR is PR focused on the investment community. However, investors can ask very probing questions, more so than the media. Therefore, the person handling IR should be someone who is well-versed in the company's business strategy and technology and can go beyond reiterating mission statements and other sound bytes. While the CEO or CFO can often perform IR duties when the company is small, the large investor base a company often amasses after a few rounds of financing deserves the attention of a dedicated IR or IR/PR person.