MacDougall Musings

4 Tips to Prepare Your Public Biotech for its Q2 Earnings Announcement

The MacDougall team brings decades of experience helping leading life sciences companies elevate their communication and connection with key audiences. Your success depends on visibility and credibility with your core audiences, partner with MacDougall to amplify your message and its impact.

With the second quarter of 2023 coming to an end, Investor Relations and Corporate Communications teams at hundreds of public life science companies must now kick into high gear. As market conditions remain volatile and uncertain, delivering on investor expectations during this earnings season is more vital than ever.

“Life science companies have faced multiple headwinds which have impacted their quarter-to-quarter performance and outlook,” says Sara Michelmore, Managing Director and head of MacDougall’s IR practice. “Ahead of this important mid-year update, it will be critical for teams to take a step back and think through the strategic communication of key performance indicators, corporate updates and guidance.”

Below are a few tips to keep in mind for the earnings process to ensure your company is well-prepared:

#1 – Build a Detailed Calendar

As companies develop and adjust their messaging strategies for quarterly earnings reports, materials will pass through countless hands and undergo constant change. A step-by-step calendar (with more detail than you may think necessary) can help keep items moving and align the team on important deadlines as your announcement date gets closer. Outline the steps that need to be taken, the individuals responsible for them, and the time by which they must be completed.

#2 – Take Time to Plan Your Key Messages

What were the themes for your company over the past quarter? Your earnings report serves as an opportunity to discuss not only financial performance, but also supporting data and qualitative markers of progress against your stated objectives. During the preparation window, make sure to take the time to meet with representatives from all departments of your organization and discuss the key business line developments. Give yourself time to understand the nuances across your entire company and be sure that your messaging encompasses the state of the whole organization.

#3 – Identify How Your Update Lines Up with Consensus Expectations

A crucial part of planning for earnings is making sure you and your executive team have a strong understanding of consensus expectations, and of how your anticipated update might compare. The sooner you can identify areas of upside or downside surprise where additional explanation might be beneficial, the more time you’ll have to align your team on your strategic messaging. “It’s important to comprehend what the Street will be focused on as part of your earnings report and have a plan of attack around parts of your update where current dynamics are not well understood or are even controversial,” says Sara. “You should also anticipate challenging questions from sell-side analysts and investors, and be prepared to answer them.”

#4 – Practice and Rehearse

Experienced and busy executives may be reluctant to spend time on dry runs ahead of investor calls, but rehearsal with the full team as well as individual practice can significantly improve the quality of your earnings communications. As your script and supporting documents change throughout the preparation process, be sure to keep a close eye on your talking points and key messages. When your materials are finalized, be sure to schedule ample time to walk through the entire earnings call ahead of your announcement date – this will allow you to make any last-minute adjustments around tone of voice and answer any clarifying questions.

Looking for more counsel on your biotech company’s IR strategy? We’re here to help. Download our  Investor Relations Overview  or contact our Head of Investor Relations, Sara Michelmore, directly.