Watch the replay of the workshop “Impactful Communication During Challenging Financial Markets”

Monday, February 17, 2025

Speaker: Chris Maggos – Managing Partner and Founder of Cohesion Bureau

Chris Maggos, Managing Partner at Cohesion Bureau, provides a strategic perspective on financial communication, investor relations, and fundraising in today’s market. He explores how biotech companies can effectively engage investors, navigate regulatory challenges, and refine their messaging to secure funding and partnerships.

Workshop summary

In this insightful session, Chris Maggos, Founder and Managing Partner of Cohesion Bureau, offers a deep dive into the challenges and opportunities facing biotech companies in financial communication and investor engagement. He begins by contextualizing the current market landscape, highlighting long-term trends in biotech valuation, and addressing the hurdles posed by today’s funding climate.

Maggos discusses the importance of clear, strategic messaging in investor relations, emphasizing that compelling storytelling—grounded in strong fundamentals—can make the difference in attracting capital. He outlines key best practices for biotech executives when positioning their companies to investors, including how to communicate risk, address valuation concerns, and articulate growth potential convincingly.

He also touches on the regulatory landscape, previewing a fireside chat on US regulatory developments. His insights equip biotech leaders with actionable strategies to navigate market uncertainties, build credibility with investors, and optimize their fundraising approach.

For biotech companies seeking to refine their investor engagement and financial communication, this session provides invaluable expertise from a seasoned strategist at the forefront of the industry.

The Impact of Rising Interest Rates on Biotech

If you look at historical data, inflation today mirrors what we saw in the 1970s. While I don’t think we’ll see exactly the same scenario, one thing is clear: if the Federal Reserve cuts interest rates too soon, inflation could rebound, causing long-term damage.

For biotech companies, this environment creates pressure because we operate in a sector where many companies don’t yet generate revenue. During the COVID boom, generalist investors were pouring money into biotech. But as interest rates rose, these investors found lower-risk ways to make money, pulling capital away from our sector.

So, what can biotech companies do to adapt and thrive in this environment?

Key Strategies for Communicating with Investors

Those of us looking to raise money and form partnerships need to return to core values and focus on what really matters.

  • Be transparent, but with purpose. Transparency doesn’t mean sharing every detail. It means giving investors, partners, and stakeholders the information they need to make informed decisions. Think of it like parenting—you wouldn’t tell your child every single worry you have, but you would communicate the important things clearly.
  • Balance consistency with adaptability. Yes, you may need to pivot, but there should be a consistent threadrunning through your messaging. Investors and partners need to see a coherent vision and execution plan over time.
  • Simplify your message for multiple audiences. Biotech is an incredibly complex industry with multiple stakeholders—regulators, investors, patients, and media. You need to find universal messages that resonate with different audiences and create a compelling narrative.
  • Local investors matter. For many companies, especially in Europe, retail investors are a crucial support base—even if you’re listed on NASDAQ. Companies often see the highest return on investment from local investor relations efforts.
  • Plan for uncertainty. Capital access fluctuates with market conditions, so secure funding when you can. It may seem counterintuitive, especially if you’re worried about dilution, but the most successful biotech CEOs are the ones who raise more than they need, ensuring financial flexibility.
  • Provide realistic guidance. Avoid giving internal timelines as external guidance. Instead, communicate goals in a way that accounts for potential delays and risks.
  • Adapt to your audience. Investors and partners come from different backgrounds—some are deeply specialized in biotech, while others are generalists. Understanding what each group values will make or break your ability to raise capital.

Building a Strategic Communication Plan

A strong biotech communication strategy isn’t just about press releases and investor meetings—it requires a structured approach:

  1. Understand Your Audience
    • Identify key stakeholders (investors, partners, regulators, media).
    • Understand what success looks like for them.
  2. Optimize Your Messaging
    • Develop clear, compelling positioning that differentiates your company.
    • Align your communication across all channels.
  3. Plan and Execute Thoughtfully
    • Define key milestones and objectives.
    • Decide which communication channels will be most effective.
  4. Iterate and Improve
    • Regularly assess whether your messaging is resonating.
    • Gather feedback from investors and adjust accordingly.

Investor trust and credibility are built over time. The biotech companies that communicate effectively and position themselves strategically will be the ones that thrive, even in difficult markets.

Edited  full transcript

Chapter 1 (Start: 00:00:13) – Introduction by Patrick Frei

Patrick Frei:

Hey, welcome everybody. My name is Patrick Frei. I am the CEO and founder of Venture Valuation and also Biotech Gate. We are the ones who actually run Biotech Gate Digital Partnering.

As probably you know, we have a full week of partnering ahead—from today until Friday—so there are many possibilities to meet people and try to find partners, clients, investors, collaborators.

We also have some very interesting workshops. It’s a great honor to have Chris Mag Magus with us from Cohesion Bureau, and he will talk about communication challenges in financial markets. It’s a very important topic—talking to investors and raising money. At the end, communication is key; it’s how you sell. I’m sure Chris can give us great insight into best practices.

Chris, thanks very much for joining us, and the floor is yours. If people have questions, you can use the Q&A. Chris will try to answer them at the end or maybe also during the session. Thanks again, Chris. The floor is yours.

Chapter 2 (Start: 00:01:44) – Main Presentation by Chris Maggos

Chris Maggos (Cohesion Bureau):

Great. Thank you, Patrick. It’s an honor to be invited, and Cohesion Bureau is really pleased to be participating in this workshop today. Tomorrow, I’ll give you a little teaser about the fireside chat we’re holding on the US regulatory situation.

My name is Chris Maggos. I’m the founder and managing partner of Cohesion Bureau. We’re a strategic consultancy that focuses on financial communication, investor relations, and fundraising.

I’d like to start by acknowledging the current market situation. Instead of launching into the difficulties, I want to put things into context a bit. If you look at the big picture over the last 30 years since the NASDAQ Biotech Index was launched, we’re actually doing okay. It’s pretty good if you compare the percent appreciation of the NASDAQ Biotech Index versus the S&P 500 or the DRG (the Amex NICE Pharma Index). Of course, that comparison can be a bit artificial because the NBI was launched in 1994, and it’s easier to have positive performance from a smaller starting point. Nevertheless, it’s quite an achievement for the biotech industry, and we should remember we’re having an impact on human health.

If you look at the last five years, it’s been much more difficult. That overlaps with the end of the COVID period, which brought a long protracted hangover. A lot of that, I think, has to do with something I’ll show in a minute. We see that the S&P 500—home to companies like Google and NVIDIA—has done fantastically well.

Why now? A little hangover after the COVID boom might be expected, but the macroeconomic forces have been quite difficult for a while. These data from Torsten Slack, a fantastic economist at Apollo, show inflation today versus the 1970s, and it’s almost a mirror image. I’m not an economist, but while we may be unlikely to see the full 1970s repeat, if the Fed cuts interest rates too soon, that could put pressure on those of us developing companies with no earnings.

During COVID, we had a lot of generalist investors. The sector’s current downward trend overlaps with the rise in interest rates, and those generalists are now seeking lower-risk ways to make money.

So, for those of us looking to raise money or do partnerships, we need to hunker down, come back to our core values, and remember why we’re doing this. We’re accountable to our investors, partners, and patients. We need to strive for transparency, but not radical transparency—rather, purposeful transparency. The way I think about it is like a parent with a child: you don’t share every worry with your kids, but you do share material information.

We also need to balance consistency in messaging with adaptability. Yes, you need to pivot when circumstances change, but you should maintain a thread of consistency. That’s what breeds trust—an investable trust in the management team’s vision and execution.

Complexity in Biotech Communication

In biotech, probably more than almost any other industry, we face a lot of complexity and multiple stakeholders. We have divergent communication channels, fragmented markets (especially in Europe, with multiple languages and stock exchanges), sophisticated and lay audiences, market volatility, and unpredictable development outcomes.

What we advise our clients to do is find universal messages that everyone can understand, so you can speak to divergent audiences and anchor your story around those core messages.

We also need to take care of our local supporters and investors. For many European companies—even if they’re listed on NASDAQ—local retail investor relations can yield the best return on investment.

You should be fluent in speaking the language of both specialists and generalists. Also, because markets change and capital access changes with them, plan for uncertainty. If you can, take more cash than you need when you can. Many CEOs who’ve been through multiple cycles emphasize that having ample cash when markets tighten is critical.

Purposeful transparency means building realistic timelines and guidance. Don’t promise your own internal goals as the official external timeline. Focus your communications on goals and execution. Keep your biggest worries to yourself, and remember the parent-child analogy: share the material issues but not every fear.

Strategic Communication Process

When dealing with communications and investor relations, the first step is listening to your various audiences—investors, partners, board members, employees, patients, media—and understanding their expectations. Then you can shape a plan: optimize your messaging, set your strategy and measurable goals, define tactics, and plan a timeline.

  • Execution: Hook and tease the media and investors. Get honest feedback. Develop your Q&A lists. Prepare for upcoming conferences or presentations.
  • Analysis: Every three to six months, measure your KPIs and feedback. Ask whether that key MOA (mechanism of action) slide is resonating. Are people questioning your indication choice? Adjust if necessary.
  • Adapt: Pivot or refine as needed, then repeat. Communication is an ongoing, cyclical process.

Tools and Channels

There’s a dizzying array of channels: board relations, investor relations, media relations, social media, websites, newsletters, clinical trial recruitment, conference presentations, and more. Board relations are especially crucial, because alignment with your board can be a game-changer. Good investor relations fundamentals include your elevator pitch, key messages, slide deck, investor meetings, and prepared Q&As.

Messaging lies at the heart of everything. Once your messaging is solid, adapt it appropriately for each channel. That’s how you amplify impact. It often requires a skilled project manager or a dedicated team. Big pharma companies have entire departments handling this because of its importance.

In biotech, probably more than almost any other industry, we face a lot of complexity. We’re dealing with divergent communication channels and multiple stakeholders. If you’re in Europe, there are also fragmented markets with different languages, stock exchanges, and regulatory systems.

We need to speak to sophisticated investors as well as lay audiences, like retail or generalist investors. Markets can be very volatile, as we’re seeing now, and our products can have unpredictable development outcomes.

What I advise is to find universal messages that everyone can understand. Build your story around those core themes so that, whether you’re talking to an expert or a layperson, there’s a clear thread.

Also, take care of local supporters—sometimes the local retail base, especially in Europe, can be your most loyal or active audience, even if you’re listed on a big exchange in the US.

And because markets shift quickly, plan for uncertainty. If you can, raise more capital than you think you need when there’s an opportunity. The more experienced CEOs will tell you that having extra cash is often critical when a market downturn hits.

Another key is purposeful transparency—don’t overshare every internal target or every fear. Think of it like talking to a child: you share real information, but not every worry that might distract or scare them unnecessarily. You build trust by balancing transparency with a consistent, adaptable message. And that consistent message—tying everything together across board, employees, investors, partners, and the media—is how you earn credibility.

Chapter 3 (Start: 00:19:29) – Q&A Session

Q1: Messaging Differences Between Employees and Board

Question: Can you give examples where messaging may differ between employees and the board?

Chris: Sure. Strategy elements often aren’t made available to all employees, especially as the company grows. If you’re in M&A discussions, for example, you wouldn’t want to panic employees by telling them they might be out of a job in a few months. Your board, however, might have given you a mandate to explore a sale. Also, as a public company, you have a fiduciary duty not to share material information too broadly; keep the circle small to avoid inadvertent insider trading. So employees and the board often hear slightly different things.

Q2: Key Recommendations for a Biotech Raising Money

Question: What would be the key recommendations you’d give to a biotech raising money?

Chris: Put yourself in the investor’s shoes. They want to make money within a certain timeframe. Time is crucial; venture funds have specific lifespans, public equity funds have different strategies. Ask them: “Where are you in your fund’s cycle?” “What’s your timeline for returns?” Then design an equity story that fits that timeframe.

Q3: Which Milestones Count as “News”?

Question: For smaller companies, any internal milestone feels like news. What’s the appropriate bar for external news?

Chris: In most cases, data. The more advanced the company, the more advanced the data needs to be. For a Series A, that may be preclinical proof-of-concept. For a public biotech, it’s often clinical data. Yes, generating data takes time, so in the meantime you can share items like your mechanism of action, differentiation, or updates from conferences. But real “milestones” usually revolve around efficacy data.

Q4: Staging Information With Investors

Question: What information should I share at a first meeting, second meeting, and before investment?

Chris: In a first meeting, focus on goals, timelines, and differentiation, supported by some data but not necessarily every detail. For deeper discussions, put a CDA in place to protect sensitive info. That also signals a deeper commitment. Before investment, there’s full due diligence—financials, HR, CRO contracts, etc. If you have critical IP or proprietary information, you might share it only after a binding term sheet is in place. Stage this carefully.

Q5: Building a US Presence

Question: When trying to build a presence in the US, which communications channels or tactics are most valuable?

Chris: Some companies assume they must have a PR agency or subsidiary in Boston, but it’s best if that move is tied to your overall business strategy—clinical trials, BD, or marketing. Communicating effectively in the US can be done from anywhere in a digital age, as long as you have people who understand US priorities. Social media, press releases, and investor calls all hinge on having the right messaging, relationships, and knowledge of the market.

Q6: Specific Support Cohesion Bureau Offers

Question: What specific support do you offer companies that are raising money?

Chris: At Cohesion Bureau, we help refine slide decks, equity stories, messaging, and design, and we can make investor introductions. Given the volume of deal flow that funds receive, anything that helps you stand out is valuable. Compared to the overall raise, professional communications are typically a fraction of the cost and can protect and build your brand significantly.

Q7: When to Engage a Communications Company

Question: Should a private biotech at Series A or B engage a communications company? Or wait?

Chris: It depends more on scale than the label. If you’re raising 10, 20, 30 million or more, it’s often a good idea. Communications support, presentation coaching, and Q&A prep may seem like added costs, but one solid meeting can land the investment you need. Experienced CEOs often bring in these services early for that reason.

Q8: IR Strategy and Tactics

Question: Could you explain more about IR strategy and tactics?

Chris: IR strategy is about knowing what investors want and showing how you’re different. Have a deep understanding of competitors and your own differentiation. If a competitor’s data is validating for your approach, share that context with potential investors—“This abstract supports what we’re doing, and our safety profile is better.” Also maintain a layered target list: current investors, top-tier prospects, second-tier prospects, etc. Share updates with those who are receptive but don’t spam everyone. When you have news or a press release, add extra context in private communications to your core investor contacts. Over time, that builds deeper relationships.

Chapter 4 (Start: 00:40:25) – Conclusion and Closing Remarks

Chris:

I think that covers the questions. I appreciate your interest; these were great questions. I’m happy to have direct discussions with any of you. You can find us at cohesionbureau.com—my email and mobile number are on the slide deck. I’m also happy to share the slides if you email me.

I’m told this presentation will be available as a recording. I’d also like to mention my colleague Susan Schafer, who is based in San Francisco and is Managing Director at Cohesion Bureau. She’ll be hosting a fireside chat with our former colleague Steve Usin, the Washington Editor at BioCentury. Steve is a consummate DC insider on healthcare regulatory issues, and I’m personally looking forward to it, given everything happening on the US political stage. The FDA and other regulators’ decisions in the coming months will be very impactful for our sector.

Thank you again, and I wish you all a great day. Please join our fireside chat tomorrow afternoon at the same time, 5:00 PM. Thank you.

02/2025