Communicating your business plan to investors James Hoggan & Associates June 25, 2002

Keys to communicating your business plan 1.Discuss business value drivers 2.Clearly define stage of development 3.Explain your business roadmap 4.Set and meet milestones 5.Know what investors think 6.Develop and follow a clear communications plan

Overview Selling your story…………….Terry McDonald Communications planning ……Karen Cook Boas

Business Plan Value Drivers IP protection for technology Attractive commercial potential Management with track record Financial strength

Business Plan Value Drivers (cont’d) Big pharma partnership Third-party validation Technology platform Pipeline Growing revenues and profits

Technology Stage Research Pre-clinical Clinical stage: early, middle or late NDA filed Approval Commercial launch Revenues and profits

Road Map for Investors Where did you begin? Where are you now? How far have you come in the past year? Where will you be in the next year? What is your ultimate destination? How are you going to get there?

The Business of Milestones Milestones help you communicate progress Milestones help non-experts monitor your progress Measurable milestones vs. hot air

They love us, they love us not Know what investors expect. Know what you can achieve. Make sure the achievements and expectations jive.

Competence + integrity = credibility Selling the story

Communications Planning Karen Cook Boas

Why plan? strategic approach “roadmap” builds agreement educates team

Structure Consider format: chronological, by issue, by audience: 1.Overview/Analysis 2.Goal and measurable objectives 3.Target audiences 4.Strategies and Tactics 5.Action plan/Timeline

Overview/Analysis Where are we now? research-based analysis management’s and investors’ perspective challenges and opportunities

Goal and measurable objectives demonstrate progress and achievements gauge success of program examples: –# of participants on conference calls –# of media articles –analysts covering company –new meetings during roadshows –new cities on roadshows

Target audiences decision makers influencers examples: –analysts/institutions- government –employees- patients –Media- retail investors –investigators/clinicians- VC’s

Strategies address challenges and maximize opportunities tied to research and objectives examples: –research based key messages –regularly scheduled investor meetings –designated, trained spokespeople

Tactics outline specific tasks to implement each strategy examples: –news releases –teleconferences –roadshows –one-on-ones –contact lists

Action Plan/Timeline month-by-month plan of activities assigns and tracks responsibilities and due dates

Other Items? news release approval process handling media inquiries disclosure policy employee blackout policy

Keys to communicating your business plan 1.Discuss business value drivers 2.Clearly define stage of development 3.Explain your business roadmap 4.Set and meet milestones 5.Know what investors think 6.Develop and follow a clear communications plan