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