Case Study 1: Balancing Act Between Large, Multi-Nationals and Emerging, Growth Companies

Situation Analysis

  • Major disease category with huge unmet need
  • History of clinical failures with various company’s approaches not validated
  • Large company X (large cap public) in-licensed company Y (small cap public) product in development with study failure
  • Large company X has responsibility to communicate all data in peer review forum (not meaningful or material to them) while small company Y has little control of the message and has an obligation to share information with shareholders due to materiality
  • Impacts research in entire field, something both companies are concerned about

Action Plan

  • This is a trigger 1/2

  • Small company Y comes together with large company X to discuss approach to communication and impact on each company and respective reputations, shareholder value and field
  • Share respective communications plans and approaches to communication
    • Large company X prepares Q&A and reactive statements (no spokesperson)
    • Small company Y prepares its own Q&A and reactive statements while advising legal counsel on materiality, hence a public disclosure (press release, 8K would need to be filed)
    • Negotiation on both sides on risk management, materiality and bias/company view
      • Media outreach to key friendly reporters
      • Advocacy outreach to patient organizations
  • Media and social media monitoring; share with respective partner on day of news
  • Checkpoint meetings to discuss impact and adjust accordingly

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