Investor relations strategy should prioritize long-term investors who are the true owners of your company. Communicating with investors is a delicate task requiring transparency, consistency, and a simple story. But the messaging shouldn’t target all investors equally. In this episode of the Inside the Strategy Room podcast, four experts discuss how to maximize the impact of investor relations. Jay Gelb and Werner Rehm co-lead McKinsey’s work in investor relations and communications; David Honigmann is an expert in organizational and interpersonal communications; and Karl Mahler is the former of head of investor relations at Hoffmann-La Roche. This is an edited transcript of their conversation. For more discussions on the strategy issues that matter, follow the series on your preferred podcast platform . Sean Brown: What are the key principles that should guide how companies approach investor relations? Werner Rehm: First, the goal of investor relations should be to align the share price with the intrinsic value of the company. It’s not helpful to be below that value, obviously, but it’s also not helpful to be above it, because at some point the share price will come down to what the company should be worth and that can happen quickly. Digital and AI transformations are everywhere. Almost every company has done, is doing, or plans to do one. But how can you make the changes stick? In this episode of the Inside the Strategy Room podcast, McKinsey senior partner Eric Lamarre talks about the critical elements of what it takes to rewire an organization through making fundamental changes to talent, operating model, and technology and data capabilities. He is coauthor with Kate Smaje and Rodney Zemmel of the Wall Street Journal bestseller Rewired: The McKinsey guide to outcompeting in the age of digital and AI. This is an edited transcript of their conversation. For more discussions on the strategy issues that matter, follow the series on your preferred podcast platform. It’s also important to think about which investors to talk to, because you won’t please them all. You will have long-term investors and momentum players, and focusing on intrinsic investors that invest in the long-term strategy matters most. These are the owners of the company, and they deserve not only an honest assessment of financial and operating performance but to be apprised of any bad news. We also think that content should dominate style. Some companies make a show out of investor day rather than treating it as an educational session about how and why the company makes money. Investor communications should highlight a deep understanding of the competitive dynamics, product markets, and long-term developments such as how ESG influences your customers’ behavior. Lastly, what’s internal is also external and vice versa, so consistency is important. Sean Brown: You mentioned intrinsic investors. How do you define them? Jay Gelb: There are different types of institutional investors, ranging from index funds to traders to what we call intrinsic investors. These investors undertake rigorous due diligence on companies’ ability to create long-term value and tend to build their portfolios from scratch, without taking cues on weighting from benchmarks. They also care deeply about the company’s underlying performance rather than quarterly results and the noise in the marketplace. Oftentimes, they view share price pullbacks as opportunities to increase their positions. This group is also unlikely to trade in and out of your stock. Intrinsic investors are your company’s support base over the long term, and the leadership team should be more open to meeting with them than other investors. Intrinsic investors care deeply about the company’s underlying performance rather than quarterly results and the noise in the marketplace. Jay Gelb
Sean Brown: How do you identify those intrinsic investors? Werner Rehm: The concept of active share of a fund can be helpful. It’s a mathematical measure of distance from index funds. You can segment investors by who holds your stock for the longest term on average, who has a high active share on average, and so on. Karl Mahler: In a large company like Roche, our investors were investing $6 to $9 billion. They cannot go into and out of a stock because they would move too much volume. What we did is checked regularly to see who the top ten or 15 shareholders were and kept in regular contact with them. These were our intrinsic investors. Sean Brown: You recently conducted a survey of intrinsic investors. What did the results tell you about how they make their investment decisions? Jay Gelb: Intrinsic investors are focused mostly on company specifics rather than on industry conditions. For example, they look at your company’s sustainable competitive advantages, your margin profile, and whether the company is an efficient allocator of capital. These investors want to understand your strategy and they focus on long-term value creation rather than short-term trends (exhibit). These long-term-focused investors also want companies to take risks that will generate attractive returns and they care about management delivering on its objectives. We found that only a small percentage of intrinsic investors seek companies with low earnings volatility or a track record of exceeding consensus estimates, because those elements don’t necessarily enhance shareholder value. There are plenty of companies that have volatile earnings but a phenomenal track record of generating value over time, which is what’s ultimately reflected in a company’s valuation. Sean Brown: What’s the best way for companies to engage with these investors? Jay Gelb: You need to treat them as sophisticated thought partners. These investors often have good insights based on what they learned from other successful companies that can be applied to your situations. It’s important to be specific, to maintain transparency, and to establish and then maintain your credibility with them. Those are critical points. You should be open about both your successes and your failures. In addition, you should demonstrate to them a deep knowledge of the company and the industry and be clear that you won’t invest in projects or M&A opportunities with low payoff potential. Karl Mahler: In the end, it’s all about management credibility and capability. The management has to convince the investor market that they are doing the right things. That credibility is as important as your products, because investors want to know that you will use their money in the best way. They want the company’s leaders to be authentic, transparent, and clear about their shortcomings. Sometimes, you simply don’t know what the future will bring and pretending you do is the worst thing you can do. Management should say, “This is what I know, this is what I don’t know, and I will try to manage in the best way I can.”
In the end, it’s about management credibility and capability. Investors want the company’s leaders to be authentic, transparent, and clear about their shortcomings. Karl Mahler
David Honigmann: This applies not only when management is talking to investors but when they are talking to employees or the press. Part of authenticity is being consistent across all the communication channels and audiences. Sean Brown: Karl, during your time at Hoffmann-La Roche, how did you manage all the information—and misinformation—out there and keep the messages to your investors consistent? Karl Mahler: In my experience, you have super-knowledgeable investors on one side who can go deep and know everything about your products. These are specialists who often work for large funds. Then there are generalists who maybe in the morning invest in a healthcare company and in the afternoon in a consumer goods business. You have to find a way to make your story appeal to both the specialists and the generalists, because you want both to invest in your company. The best way to do that is to keep the messaging simple and crisp. As soon as the slides start to get full, with one message after another, people get lost. You can stay consistent only if you have a clear and easy-to-understand story. The biggest mistake I see companies make is trying to put out too many messages that are too complicated. Sean Brown: Sometimes, a bad quarter could lead to a stock selloff and maybe change intrinsic investors’ value thesis. How should management teams handle that? Werner Rehm: Every company will occasionally miss its numbers, but it matters why. If you miss because of a one-time tax settlement or another reason that can be easily explained, it doesn’t make much difference in the long term. If you miss because you have a fundamental problem that is likely to continue, that will matter. Sometimes, the share price does not go down because of earnings per share (EPS) but because, for example, M&A news was poorly received. It’s important to understand whether the missed numbers send a long-term signal. Jay Gelb: You want to avoid being on the quarterly guidance treadmill. That’s challenging for companies, particularly when they don’t meet their numbers and the market reacts. Instead, management should communicate long-term, aspirational targets. I don’t mean EPS guidance or even a range for next year but key performance indicators for top-line or sales growth, margins, customer growth, return on invested capital or equity, or expectations of capital deployment and whether you will reinvest that capital in the business to support growth, in M&A, or return it to shareholders. Remember that a selloff becomes a buying opportunity for intrinsically oriented investors. As long as the company keeps marching toward its long-term aspirations, long-term investors will remain, despite some interim noise from trading-oriented investors. Karl Mahler: I think that’s a super-important point. You should focus on the medium-term or long-term outlook. As long as you can convince investors that you are still on the right track, a quarter is not an issue. If, however, earlier messaging pointed in the wrong direction or executives are regularly overpromising, that starts to hurt because investors are no longer sure what the next quarter will bring. But as long as you can convince investors that your long-term path is intact, the short-term blips are just that. Every company has them. Werner Rehm: It comes back to the first thing that we discussed, which is the role of investor relations in aligning market value with intrinsic value. If you try to maximize the share price by inflating that value, it will come back to you likely in the form of a missed quarter, because at some point you will miss your revenue or top-line estimate. Subscribe to the Inside the Strategy Room podcast

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Dublin, Nov.  27, 2023  (GLOBE NEWSWIRE) -- The "Glioma Treatment Global Market Report 2023" report has been added to ResearchAndMarkets.com's offering. The global glioma treatment market is expected to grow from $4.37 billion in 2022 to $4.70 billion in 2023 at a compound annual growth rate (CAGR) of 7.4%. The glioma treatment market is expected to reach $5.99 billion in 2027 at a CAGR of 6.3%. The glioma treatment market report offers comprehensive statistics, including global market size, regional market shares, the market presence of competitors, detailed market segments within the glioma treatment industry, emerging market trends, opportunities, and additional data essential for success in the glioma treatment sector. One prominent trend in the glioma treatment market is product innovation, with major companies striving to introduce innovative products to maintain their market positions. For instance, in November 2021, Daiichi Sankyo Company Limited, a Japan-based pharmaceutical company, unveiled Delytact, an oncolytic virus therapy for brain cancer, making it the world's first of its kind. Delytact employs a cancer-fighting virus with a viral genome carrying three triple mutations that enhance replication within cancer cells. This breakthrough treatment is particularly effective against malignant glioma. Another noteworthy development took place in February 2023 when Kite, a US-based global biopharmaceutical company, acquired Tmunity Therapeutics, further strengthening its position in cell therapy research. This acquisition expands Kite's portfolio and capabilities by incorporating additional pipeline assets, including an "armored" CAR T technology platform that can enhance the anti-tumor activity of various CAR-T therapies. Tmunity Therapeutics Inc., a US-based biotherapeutics company, focuses on developing novel treatments for diffuse intrinsic pontine glioma. The glioma treatment market is also anticipated to benefit from the increasing incidence of brain and spinal cord tumors. These tumors comprise uncontrolled masses of abnormal cells in the brain or spinal cord. Glioma treatment plays a crucial role in the management of brain and spinal cord cancers, effectively eliminating remaining cancer cells or residual tumor tissue following surgical procedures. For example, according to the American Society of Clinical Oncology in March 2023, primary malignant brain and spinal cord tumors were projected to affect approximately 24,810 individuals in the US in 2020, with brain tumors accounting for 85% to 90% of all cases. Globally, an estimated 308,102 individuals received a diagnosis of primary brain or spinal cord tumors in 2020. As a result, the rising incidence of brain and spinal cord tumors is a key driver of growth in the glioma treatment market. In 2022, North America held the largest share of the glioma treatment market. However, Asia-Pacific is poised to be the fastest-growing region during the forecast period. The glioma treatment market report covers various countries, including Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA. Major players in the glioma treatment market are
Merck & Co Inc.
Thermo Fisher Scientific Inc.

Global Glioma Treatment Market Report 2023-2027 and 2032 Featuring Major Players - Merck & Co, Amgen, F Hoffmann-La Roche, Pfizer, and Teva Pharmaceutical

GlobalData forecasts a drug-specific PTSR of 35% for obinutuzumab. Share this article
LN is an autoimmune kidney disease resulting from SLE progression. Roche may be able to join the list of companies who have approved therapies for the treatment of lupus nephritis (LN), as recent results published from a post hoc analysis of the Phase II NOBILITY trial for the company’s obinutuzumab against LN reveal a positive outcome for Roche (Rovin et al, 2023). LN is an autoimmune kidney disease occurring as a result of systemic lupus erythematosus (SLE) progression, with a prevalence of 40% in patients suffering from SLE (Gasparotto et al, 2020). Go deeper with GlobalData
Causes of death may include renal failure, infections, cancer, and cardiovascular events (Gasparotto et al, 2020). Roche’s post hoc study demonstrated that patients treated with obinutuzumab exhibited a reduction in the risk of developing unfavourable kidney outcomes by 60% and LN flares by 57% (Rovin et al, 2023). More specifically, the study revealed that by week 76, 38% of patients who were administered obinutuzumab were able to achieve a complete response rate with a lower intake of glucocorticoids compared to placebo (16%). How well do you really know your competitors? Access the most comprehensive Company Profiles            on the market, powered by GlobalData. Save hours of research. Gain competitive edge. Not ready to buy yet? Download a free sample
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This was complemented by reductions in estimated glomerular filtration rate (eGFR) declines, with the number of patients experiencing 30% and 40% eGFR declines reduced by 80% and 91%, respectively, compared to patients on placebo (Rovin et al, 2023). These results may reveal a promising future for Roche’s obinutuzumab in the LN treatment landscape. Currently, multiple drugs have been approved for the treatment of LN globally, including GlaxoSmithKline’s Benlysta (belimumab), which targets the B-lymphocyte stimulator, and Aurinia’s Lupkynis (voclosporin), a calcineurin inhibitor. Obinutuzumab is a monoclonal antibody targeting the CD20 protein on cells that facilitates antibody-dependent cell-mediated cytotoxicity and phagocytosis, resulting in cell lysis (Rovin et al, 2023). Thus, autoreactive B-cells documented in patients with LN can be targeted, thereby providing a therapeutic effect for patients with LN (Yap and Chan, 2019). Obinutuzumab is currently under ongoing Phase III clinical trials, the results of which have not been announced as of today (23 November 2023). However, GlobalData projects a drug-specific phase transition success rate (PTSR) of 35% and a likelihood of approval (LoA) of 22%, which are higher than the average PTSR for the indication (25%) but lower than the indication-specific LoA, which is also projected at 25%. These estimations suggest that further clinical trial data may be required to show evidence for the agent’s efficacy in LN in comparison to the currently available therapies. Nevertheless, the recent announcement may bring hope to patients with LN across the world, considering that the novelty of this agent’s mechanism may provide better results in future LN studies. Share

Roche’s drug Phase II trial results can be promising for lupus nephritis patients

EirGenix and Sandoz's biosimilar has been approved for all the indications as the reference biologic, Roche’s Herceptin. Share this article
Herceptin is a monoclonal antibody that binds to HER2 receptors, thereby, priming these receptors for immune system targeting. The European Commission has granted marketing authorisation to EirGenix’s Herceptin (trastuzumab) biosimilar for marketing in the European Union. The biosimilar has been approved as a treatment for human epidermal growth factor receptor 2 positive (HER2-positive) breast cancer and metastatic gastric cancers, as per a 22 November press release . Go deeper with GlobalData
Herceptin is a monoclonal antibody that binds to HER2 receptors, thereby priming these receptors for immune system targeting. The drug generated SFr1.26bn ($1.4bn) in year-to-date (YTD) sales in September, as per Roche’s Q3 financials. Sandoz is responsible for the worldwide commercialisation of EirGenix’s Herceptin biosimilar, except in Taiwan, China, Russia, and some Asian countries, based on the 22 November press release. Meanwhile, EirGenix holds the developmental, commercialisation and manufacturing rights for the biosimilar in countries not covered by Sandoz. In September, EirGenix’s Herceptin biosimilar received a positive recommendation from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). The EU approval and positive recommendation were based on the results from Phase I and Phase III trials. This included an 807-patient Phase III trial (NCT03433313) where subjects either received the biosimilar or Herceptin in combination with the chemotherapy drug, paclitaxel. The study demonstrated that the biosimilar was non-inferior to the reference biologic. How well do you really know your competitors? Access the most comprehensive Company Profiles            on the market, powered by GlobalData. Save hours of research. Gain competitive edge. Not ready to buy yet? Download a free sample
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Other Herceptin biosimilars currently on the market include Amgen and Allergan’s Kanjinti. The biosimilar was approved by the US Food and Drug Administration (FDA) in 2019. The drug generated $20m in total sales in Q3, as per Amgen’s Q3 financials. Herceptin biosimilars currently in development include Aurobindo Pharma’s BP02. The Phase III trial (CR201-18) met its primary endpoint by demonstrating non-inferiority to Herceptin. EirGenix is also developing a biosimilar of Roche’s Perjeta (pertuzumab) , a drug that is approved as an adjuvant therapy for HER2-positive early breast cancer in combination with Herceptin and chemotherapy. The Taiwanese company is planning a Phase III trial for the biosimilar, as per an 8 May press release . In September, Sandoz received European approval for Tyruko (natalizumab), a biosimilar of Biogen’s Tysabri. Tyriko was approved for Chron’s disease and all multiple sclerosis (MS)-related settings, including relapsing-remitting MS, clinically isolated syndrome (CIS), and active secondary progressive disease. Sign up for our daily news round-up! Give your business an edge with our leading industry insights.

EirGenix and Sandoz win EU approval for Herceptin biosimilar

To print this article, all you need is to be registered or login on Mondaq.com. Genentech, Roche, and Biogen filed a Complaint on November 17 against Dr.Reddy's Laboratories ("DRL") and Fresenius in theU.S. District Court for the District of New Jersey, alleginginfringement of 15 patents under the BPCIA based on DRL'ssubmission of an aBLA for DRL_RI, a proposed biosimilar of RITUXAN(rituximab) and DRL's provision of Notice of CommercialMarketing with respect to the same. This is the third infringement suit under the BPCIAconcerning a proposed biosimilar of RITUXAN. Genentech previouslysued Sandoz on December 21, 2017 and Celltrion and Teva on January12, 2018. Both cases were dismissed in December 2018, after theparties filed stipulations of dismissal stating that they hadentered into settlement agreements. Since then several rituximabbiosimilars have launched in the United States, includingCelltrion's TRUXIMA (rituximab-abbs), Pfizer's RUXIENCE(rituximab-pvvr), and Amgen's RIABNI (rituximab-arrx). Genentech's Complaint states that Plaintiffs are informedand believe that Fresenius has "entered into an exclusivelicense agreement with Dr. Reddy's to commercialize Rituximabin the US." They further allege that DRL submitted its aBLAprior to April 21, 2023 seeking approval for a RITUXAN biosimilarlabeled with all the various indications for RITUXAN.Genentech's Complaint states that DRL provided its aBLA toPlaintiffs on or about July 3, 2023, but did not "meet itsobligation to provide 'other information that describes theprocess or processes used to manufacture' DRL_RI asrequired" by the BPCIA. Despite this alleged deficiency,Genentech provided its 3(A) list to DRL. According to theComplaint, thereafter, on November 16, 2023, DRL provided itsNotice of Commercial Marketing. Plaintiffs brought "suit onall fifteen patents on Plaintiffs' Patent List, out of anabundance of caution, to preserve all rights." Twelve of thepatents are directed to methods of manufacture and the remainingthree patents claim methods of treatment. Genentech's Complaint seeks a declaration of infringement, adeclaration that the patents are valid and enforceable, damages, anaward for an accounting of damages, a declaration of willfulinfringement and a trebling of damages, and preliminary andpermanent injunctions. The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances. AUTHOR(S)

United States: Genentech, Roche, And Biogen Sue Dr. Reddy's And Fresenius For A Proposed Biosimilar Of Rituxan In District Of New Jersey - Goodwin Procter LLP

Alnylam Pharmaceuticals is a leading company focused on RNA interference (RNAi) therapeutics within the pharmaceutical industry. The company's main offerings include the development of innovative medicines to treat rare genetic, cardio-metabolic, acute hepatic infectious, and central nervous system (CNS) and ocular diseases. These medicines work by using RNAi to 'silence' or turn off specific genes that cause or contribute to disease. It was founded in 2002 and is based in Cambridge, Massachusetts.

Alnylam Pharmaceuticals

Swiss pharma giant Roche has entered into a new partnership with USA-based Alnylam Pharmaceuticals to develop and commercialize zilebesiran , the latter 's investigational RNAi therapeutic currently in Phase II for the treatment of hypertension .

Roche partners with Alnylam on RNAi therapeutic zilebesiran

Poseida Therapeutics (NASDAQ: PSTX) is a clinical-stage biopharmaceutical company. It specializes in differentiated cell and gene therapies. Its pipeline includes allogeneic CAR-T cell therapy product candidates for both solid and liquid tumors and in vivo gene therapy product candidates that address patient populations with unmet medical needs. The company was founded in 2014 and is based in San Diego, California.

Poseida Therapeutics

The clinical-stage biotech Poseida Therapeutics announced a broader partnership with Roche on Wednesday to jointly develop allogeneic CAR-T therapies in a deal valued at up to $ 6B .

Poseida up 95% as Roche eyes CAR-T drugs in deal worth up to $6B

Avista provides digital solutions for credit products including travel, payroll credits, education, payments, and health. It offers digital credit services to low-income people. The company was founded in 2019 and is based in Bogota, Colombia.

Avista

Avista Therapeutics and Roche will partner to develop adeno-associated virus gene therapy vectors for ocular diseases , according to a press release .

Avista, Roche partner on gene therapy program for ophthalmic conditions

ImaginAb is a biotech company that focuses on the development of targeted molecular imaging for the clinical management of cancer and autoimmune diseases. The company's main offerings include an advanced imaging agent and radiopharmaceutical therapy products, which are designed to provide an in-depth visual profile of a patient's immunity status and to kill tumor cells with targeted radiation. ImaginAb primarily serves the healthcare and biotech industries. It was founded in 2007 and is based in Inglewood, California.

ImaginAb

Kaiku Health is a digital health company aiming to improve quality of life through health data science. Kaiku Health's digital platform provides personalized digital health interventions for cancer patients. It is used in routine care by clinics and hospitals in order to better monitor their patients, reducing manual work and allowing prioritization of clinical actions.

On May 19, 2020, Kaiku Health was acquired by Elekta. The terms of the transaction were not disclosed.

Kaiku Health

Roche is a global company that operates in the pharmaceutical and healthcare technology sectors. The company primarily offers innovative medicines and diagnostic tests that are designed to aid millions of patients worldwide. Roche's main customer segments include the healthcare and pharmaceutical industries. It is based in Mississauga, Ontario.

Name	Title	Status
Ronnie Miller	Chief Executive Officer, President	Current
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