Monthly Archives: March 2009

Media Relations Practices at Medical Conferences: Common Sense With Journalists Prevails

As Russo Partners wrapped up its three-day stint at the American College of Cardiology’s (ACC) Annual Scientific Session, our team members reflected on the display of media relations practices both good and bad by PR practitioners.

On one end of the continuum, inexperienced PR staffers from small and large agencies — and even those individuals with lofty titles — hounded reporters as they exited the conference’s media room. We witnessed several instances of “in your face” confrontations in which the PR people cut off reporters who clearly were in a rush to make it to media conferences.  One PR person literally held a news release in front of a journalist, blocked the journalist’s path and launched into a pitch for a big pharma company’s drug trial.  The annoyed journalist refused to touch the document, responded with a loud “I’m not interested,” and fled the area with the PR person following on her heels.

On the other end of the continuum, well-seasoned PR pros took the time to say brief “hellos” to journalists with whom they must have enjoyed working relationships, chatted with reporters about what physicians were talking about at the conference and then moved on to other activities.  These activities involved sit-downs with the reporters and clients only where the on-site meetings were warranted — where new and timely information would calls for such meetings.

The second group is the one in which Russo Partners fits.  Our healthcare PR counselors spent just as much time meeting with cardiologists and company executives at the ACC conference as they did meeting with journalists.  And the meetings with journalists were mostly social in nature. For example, a dinner Saturday evening with Cardiovascular Business’s editor-in-chief, Chris Kaiser, and Molecular Insight’s CEO, John Babich, consisted of good discussion about a wide range of topics, including several timely story ideas related to the detection of ischemia in the emergency room.  In addition, multiple coffee stops with reporters with national newspapers and the wire services produced interesting storylines for further exploration as well as stronger relationships. When we added a couple of media interviews with doctors and client company executives to this mix, including an update meeting with with the FAME study investigators and Bloomberg News’s Alex Nussbaum, we enjoyed a full schedule of productive interaction with journalists who will continue to turn to us for assistance.

Call it the Russo Partners media relations way or simply call it common sense. Regardless, it’s interesting to see how this way doesn’t seem to be the way of others in our industry.

“Unveiling” a Biopharma Company Requires More than a News Release

calx-180x58Russo Partners did it again this week.  And we’re sure we’ll do it – unveil a biopharma company — again next week and many times in the future.

Since our founding 21 years ago as Noonan Russo, we’ve helped to introduce innovative biopharmaceutical companies to investors, employees, business partners and other audiences through our PR work.  Earlier today, we distributed a news release for San Diego-based Calixa Therapeutics to announce Phase I study results for a novel antibiotic. While the news release would have been enough for some executives with early stage biopharma companies, we insisted that the Calixa team members follow our lead with the implementation of a comprehensive campaign to unveil the company.  And that is exactly what we did.

A campaign for a small, venture-backed company with a few employees and the reliance on outside partners for everything else? We hear this from venture capitalists and CEOs all of the time.  Our answer is straightforward: Absolutely! Our work for Calixa consisted of  message and story development, spokesperson preparation, tool creation (media interview checklist, news release and basic Web site – the site was developed by Calixa and another partner), embargoed media outreach prior to the distribution of the news release and aggressive follow-up after the distribution. 

The results of this approach were phenomenal.  Not only did we secure profiles with BioWorld Today and Xconomy, we generated genuine interest in the Calixa story from reporters with a wide range of life science, pharma and business publications.  Our work on the campaign has set up the company with a foundation for more PR success as the Calixa executives move forward with their drug development plans.

A View on Financing from the Thomas Weisel Partners Healthcare Investment Bankers

Mark Dempster

Mark Dempster

Russo Partners met recently with Mark Dempster and Ralph Sutton of the Thomas Weisel Partners New York City healthcare investment banking team to catch up on what’s happening in biotechnology, pharmaceutical and medical technology financing.

With the financing environment continuing to be challenging for companies in need of capital, we asked Mark and Ralph what they’re seeing today.  Here’s their view:

  • VCs are consolidating their investments. The VCs are being forced to hold onto portfolio companies longer than originally planned and are having to take a hard look at their porfolios and focus funds on a subset of companies. VCs may be an alternative funding source for public companies with low market valuations, but companies need meaningful clinical data in hand or in upcoming announcements to be attractive to them.

 

  • Access to capital is extremely challenging for small-cap and private biotechnology companies. The investor universe has narrowed significantly. To raise capital, many small companies are looking to partner or sell to large-cap pharmaceutical or biotechnology companies.  However, there are more sellers than buyers. This likely means some small biotechnology companies will go bankrupt or otherwise go out of business. Companies are being forced to focus their efforts on key programs and husband cash.

 

  • In medical technology, financing has shifted toward later stage companies. VCs are seeking opportunities to provide growth capital or where the risks are related to commercialization and execution, rather than clinical, regulatory and reimbursement. Small-cap companies have suffered from the market downturn. The average return of the 50 IPOs completed in 2004 through last year  is -60%, and, for the pre-revenue companies in that universe, the return is -75%.

Mark Dempster and Ralph Sutton are managing directors in healthcare investment banking at Thomas Weisel Partners in New York City. You can reach them via e-mail at mdempster@tweisel.com and rsutton@tweisel.com.

Extra! Extra! Online Media Outlets Often Help Us to Achieve Better PR Outcomes

Extra! Extra! Are newspapers dying?

The headline of David Lieberman’s article in today’s edition of USA Today is old news – if newsy at all.  What’s happening to newspapers is what’s driving Russo Partners’ healthcare PR counselors to advise clients to look beyond traditional media to reach investors, business partners, physicians and patients. We’ve been saying and doing this for a long time.

Take the Taligen Therapeutics story as an example.  When this Colorado biotech company contacted Russo Partners, Taligen was in a state of transformation.  A new CEO with expertise in protein drug development and a new office in Cambridge, Mass., were tidbits of company news that dominated a PR program session led by our team. Through our strategic planning and message-development process, we identified one of the most important audiences for Taligen as that of prospective employees (an audience we didn’t even mention above).  The new CEO, industry veteran Dr. Abbie Celniker, made it clear that the company’s next phase of growth would require her to identify and lock in other industry heavyweights.  However, Taligen had little to no name recognition outside of Colorado and the circle of complement system scientists who worked with the well-respected Dr. Michael Holers.

Instead of announcing the hiring of the CEO and her establishment of the new office, Russo Partners positioned the information as supporting points in an overall Taligen growth story.  The news release we distributed focused on the unveiling of the company’s strategic initiatives as opposed to boring personnel move information.  And instead of focusing the efforts on the traditional print media such as the Boston Globe, we aimed specifically for big hits in online publications that reach members of the life science community.

The results: Numerous Web-based articles about Taligen’s movement into its next phase of growth.  One article in particular did its job well.  A profile of the company on Xconomy, which bills itself as the “authoritative voice on the exponential economy,” flooded Taligen with inquiries from scientists, business development and regulatory affairs experts.  The output, as we call it in PR terms, produced better outcomes than what we were able to accomplish with industry-focused print publications and the local newspaper.

This case is one reason why we’re rolling along with Xconomy.  National Biotechnology Editor Luke Timmerman calls on Russo Partners’ staffers frequently for story ideas and connections to company executives.  Posted earlier today by Luke was an article about a young San Diego company, Amira Pharmaceuticals ,that lays out the story in straightforward terms.  It’s another home run in the making.

So where does that leave us with the obituary writers for the newspaper industry?  The same place where we were with clients many, many, many months ago: Advising healthcare executives to rethink their media relations targets and strategies to accomplish what they want in today’s Web 2.0 communications world.

Healthcare Investment Banker John Chambers Shares Financing Tips in Light of Today’s Market Conditions

  • Keep all options open. Explore licensing, financing and M&A
    John Chambers

    John Chambers

    alternatives concurrently to the extent you can. Given the fragility of all of those options, we encourage clients to maintain this optionality to help ensure a deal gets done and create “leverage” in exploring more than one alternative to enhance shareholder value.

 

  • There is not going to be an optimal market to kick off a deal. The objective should be to get out and start marketing. Deal timeframes are extended, taking eight to 10 weeks in order to accommodate the due diligence of fundamental investors who are driving today’s financing market. Once the marketing and due diligence are complete you can navigate the market in which you announce and close the deal.

 

  • Competition for attention is intense whether you are targeting fundamental investors or strategic partners. With more than 300 public healthcare companies and 1,200 privates, the need for capital is still significant. Approximately 180 of the public companies are below $100 million in market cap, and roughly 80% of those have less than three quarters of cash. Investors and strategic partners are seeing a flood of opportunities. It takes a great deal of tenacity to garner attention in this market.

 

  • Try not to focus on stock price. Investors are active but not necessarily in the aftermarket. This has caused the stock price stagnation and deterioration over the last year. Investors are more inclined to invest in a transaction. This enables them to see their capital put to use to fund a company through milestones versus trying to “time the market recovery.” Also, in less liquid names (for example, the 180 companies below $100 million in market cap), buying in the open market will take significant time in order to acumulate a meaningful position — and the investor is likely to drive up the stock price in the process. 

 

  • Lastly, metrics driving the need for capital remain unchanged. It takes approximately $1.2 billion and 10 to 15 years to take a project from research to the market. Bear in mind that there is a 90% attrition rate along the way. The ravenous appetite for capital still remains, however not all companies will be able to attract investors or partners in this marketplace. This process, unfolding as we speak, will be Darwinian and result in a smaller and more capital efficient sector when we emerge from this market tumult.

 

For more information, contact John via e-mail at jchambers@mcfco.com.

 

John W. Chambers heads Merriman Curhan Ford’s Heath Care investment banking team. Chambers was most recently co-head of investment banking at Rodman & Renshaw. He has also held senior-level healthcare and biotechnology banking positions at SG Cowen, Lehman Brothers, UBS and Salomon Smith Barney. Chambers has executed a significant number of banking transactions, strategic transactions and restructurings across all healthcare sectors. Chambers earned his M.B.A. from Columbia Business School and his B.S. in mechanical engineering from Union College. He is based in Merriman Curhan Ford’s New York office.

Russo Partners and BIOCOM Bring Bloomberg Reporter to San Diego

BIOCOM's Joe Panetta

BIOCOM's Joe Panetta

One of the top health and science writers with Bloomberg News will head south from his San Francisco Bay Area base next week to meet with executives with San Diego life science companies. Russo Partners and BIOCOM‘s Tim Ingersoll, the organization’s director of communications, are coordinating the “tour” following a January meeting with the reporter in which BIOCOM President and CEO Joe Panetta provided an overview of the San Diego market.  Kudos to Joe and Tim for their frequent work with media outside of San Diego to raise awareness of industry activities.

BIOCOM's Tim Ingersoll

BIOCOM's Tim Ingersoll

Russo Partners’ Heidi Chokeir, Ph.D., is spearheading next week’s media meetings along with Tim Ingersoll.  For more information, contact Heidi in our San Diego office at heidi.chokeir@russopartnersllc.com.

Journalists Have Rights, Too.

Journalists are funnels.

Journalists are funnels.

In our last entry, we provided you with a list of 10 rights you have as a “newsmaker” for your healthcare company or organization.  The individuals with whom we work know the rights and use them as part of the daily practice of media interviews.  These well-prepared spokespeople also know and respect the fact that journalists have rights, too.

1. To have reasonable access to news sources and news scenes

When something doesn’t go our way, we can’t lock the front door and hide, especially if we’ve been proactive in cultivating relationships with journalists.  We’ll always provide journalists with what a typical person would consider to be reasonable access. For example, we’d let a reporter and photographer into the reception area of an office but not into an area where an average person is barred from regular access.

2. To a timely response to an inquiry

Journalists live to meet their deadlines.  You must take all deadlines into consideration and work to meet them on a regular basis. 

3.  To a concise, direct and truthful answer to all relevant questions

If you don’t know the answer, say so and offer to get back to the journalist with the information at a later time.

4. To expect your organization to have a media contact

Journalists don’t like to chase top executives for comments.  Russo Partners’ team members serve as the primary media contacts for most clients to ensure that our media relations programs run efficiently.

5. To insist that you prove all of your claims

Is your product the first to do something?  Is it the only product that can do something?  If you make a claim, you must prepare to back it up.  Journalists will press you for information to support the claim.

6. To seek reaction and opinion from other interested parties

Isn’t this what makes news?  He says A. She says B.  The different perspectives make a story interesting.  Journalists speak with multiple sources before writing articles or taping segments. If you want 100% control of content, buy an ad! You never have complete control of the content when you work with journalists.

7. To decide what statements, information and visuals are appropriate for the story

This goes hand in hand with No. 6.  It’s up to the journalist what goes into the story.  Still, you can provide your suggestions.  That’s what we recommend.

8.  To courteous and considerate treatment

Need we say more? This is a given.

9.  To a regular flow of information during a breaking story

Think back to No. 1.

10. To evaluate and report the story as the journalists sees it

Again, it’s up to the journalist as to how he or she moves forward with a story.  As a newsmaker, you can provide the journalist with your recommendations.  Better yet, you can structure the story and deliver content in a manner that leads the journalist to follow you. 

If you’re interested in learning more, send an e-mail to david.schull@russopartnersllc.com

Know Your Rights as a Healthcare “Newsmaker”

When you meet the press in-person or via telephone, it’s important to know your “rights” as the “newsmaker” for your healthcare company or organization.

1. To know the interview topic in advance

If you don’t know the topic, don’t do the interview. How can you prepare to tell your story if you don’t know what the journalist wants to discuss?  Spontaneous conversation is not a viable option.

2. To know the identity and affiliation of the journalist

Don’t engage a journalist in an interview “discussion” unless you know with whom you’re speaking.

3. To know the “peg” and planned use of the interview

Is the journalist obtaining background for a story?  Will your company be the focus of the story?  Or perhaps your comments will be included in an industry round-up?

4. To know whether others are being interviewed

Ask the journalist with whom he or she is speaking for the story.

5. To state or restate your key points

The only reason why you’re conducting the interview is to tell a story.  As we discuss with designated spokespersons in our training sessions, preparation of your story is critical before you conduct any interview.

6. To some control over the interview environment

Don’t conduct an interview on the fly. Take charge of all situations.  At your company’s tradeshow booth when you’re approached by a reporter?  Suggest that you meet at another time and location that are convenient for you.

7. To keep the interview process orderly — even the “ambush” interview

Take charge of the interview.  If a journalist is aggressive in his or her pursuit of information, tell the journalist what you will cover.  Don’t sit back and let the journalist control the flow of the discussion.

8. To interrupt if the journalist is making false statements

If the reporter’s “facts” aren’t true, tell him or her and take charge of the discussion.  Explain what is correct and move to your messages.

9. To refuse to provide proprietary or confidential information

Don’t disclose information if there’s no obligation or benefit to its disclosure. For example, a reporter asked the CEO of a private biotech company about financial information last week.  The CEO said that the company doesn’t disclose that information because the company is private.  Then this well-trained “newsmaker” steered the discussion to a message that the CEO had prepared to deliver.

10. The right to remain silent — sometimes!

Next time we will take a look at the journalists’ rights to help you complete the picture.  If you have questions about how to make the most of your media interviews, send them to david.schull@russopartnersllc.com.

Translating the Promise of microRNA Therapeutics into PR Success

Kleanthis Xanthopoulos, Ph.D.

Kleanthis Xanthopoulos, Ph.D.

Russo Partners kicked off another science-heavy PR program today.  This time, the focus is the promise of microRNA therapeutics — drugs that inhibit microRNAs — brought to you by a promising San Diego company called Regulus Therapeutics.

Led by a highly accomplished, well-respected scientist, Dr. Kleanthis Xanthopoulos, Regulus has taken a significant step toward independence with today’s announcement of a $20 million financing and corporate restructuring.  This comes at a time that the company is advancing its development-stage compounds forward at a steady pace. 

Enlisted by Dr. Xanthopoulos, with whom we worked when he was CEO of Anadys Pharmaceuticals, Russo Partners enjoyed PR success on day No. 1 by elevating the news to the top of science and business journalists’ coverage lists.  The immediate results include articles in BioWorld Today, BioCentury, Xconomy and other industry-focused publications.  Our media outreach also produced opportunities to connect Dr. X (as we often refer to him) to reporters with the wire services and major national media outlets, including Newsweek, Time, The Wall Street Journal, The New York Times and several broadcast outlets.

Russo Partners looks forward to working in the world of microRNA. Furthermore, we look forward to working again with a CEO with whom we’ve enjoyed a long, productive relationship.