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