A recent global survey by Marks & Clerk, the UK patent firm, suggests that big pharma is rapidly approaching a “patent cliff” and will be more dependent than ever on its biotech brethren for the development of successful and profitable drugs in the years ahead. The survey found that bio/pharm may be entering an even cozier relationship than they already have, resulting in a slew of mergers and acquisitions. 
Conducted among 400 biotech and pharma execs in the U.S., UK, Europe and Asia, the survey revealed a pessimistic view of the innovation capabilities of big pharma. Fully 82% of executives had little faith that big pharma would be able to innovate sufficiently to replenish shrinking drug development pipelines, resulting in a marked increase in acquisitions to augment that deficiency. Nearly three-quarters predicted substantial merger activity within the next two years, with increased activity beginning as early as next year.
These predictions suggest that the environment for biotech companies seeking partners or exit strategies has greatly improved. So In addition to shoring up balance sheets, tightening operations and demonstrating the clinical value of compounds and drugs, there are numerous actions to be taken on the marketing and communications front to ensure that a company is putting its best foot forward.
The most strategic and often most cost-effective approach to improving a company’s visibility and stature is to fully integrate marketing and communications to ensure that positioning, messages, strategies and tactics of all the marketing disciplines are in alignment and are able to deliver the company brand and story most forcefully. And it is important to note that this integration certainly now includes social media which is absolutely transformational in the way that individuals and companies get information and communicate with each other, and are able to disseminate information and strengthen their brands. A few things to consider:
A strategic public relations program is one of the best ways to raise visibility to broad industry audiences in a way that educates about the company, its science, management, goals, intellectual property and pipeline. This program may contain many components including byline articles and opinion editorials placed in leading trades or business publications, executive speeches and appearances at important conferences and blogs on the company website or other online media. All of these tactics, if orchestrated strategically, are very effective in raising a company’s awareness in a credible way. Key to this program is Thought Leadership, and this is especially important as it relates to acquisitions. The acquirer wants to know they are acquiring talent and intellect as well as substances in development or products on the market. Thought Leadership programs usually include byline articles written by scientists or executives involved the success of the company, opinion editorials, and white papers which demonstrate leadership and knowledge both on the scientific and business sides. Being an acknowledged thought leader may also result in a premium at acquisition time.
It is also important to make sure your website is up to date, relevant, and reflects the themes your company and the industry embrace and are concerned about. Your company logo, the images you choose for the site and language content that resonate with key audiences, in this case the acquirer, will leave an important, lasting impression if pharma is “shopping around” on the web for potential products and doesn’t already know you. Ensure that your marketing communications materials are sharp, professional, accurate, and reflect the latest advances of your compound in the clinic or your drug on the market. Spec sheets, fact sheets, Q&As are all important descriptors of your company and its key products and compounds.
Finally, as noted above, social media can reinforce a company’s evolution and momentum by increasing its exposure to those who follow the industry. A company becomes more visible to all interested players if it has the tools to stay top of mind when it counts.
While mergers and acquisitions are nothing new in the biotechnology and pharmaceutical industries and there has been a symbiotic relationship between the two sectors for many decades, the Marks & Clerk survey suggests that the continued weakness in big pharma pipelines will intensify the hunt for biotech drug development for some years to come, and biotechnology companies would do well to position themselves for a very different, more open and opportunistic future that hasn’t been seen in years.
