The regenerative medicine industry is growing at a break-neck pace. The Alliance for Regenerative Medicine (ARM) recently released its 2020 Annual Report. It provides us with some metrics to illustrate the boom that the field is experiencing.
It paints an exciting picture of new products that are in development, in clinical trials and being approved by regulators.
- There were 1,220 clinical trials in 2020; 383 were in Phase I, 685 were in Phase II and 152 were in Phase III.
- The top specific areas/indications for clinical trials are oncology (554), central nervous system (94) and monogenetic diseases (87).
- Gene therapies made up the largest proportion of trials (423), followed by cell-based immuno-oncology (419), cell therapy (368) and tissue engineering (10).
- Six therapies were approved in 10 countries from January 2020 to March 2021, while upcoming approvals of nine therapies are expected.
Science communication is likely a familiar term these days. It involves scientists, either on their own or working with their communications business partners, sharing science-related information in ways that resonate with diverse audiences. By translating complex science, sharing the results and explaining their significance, effective science communication ensures that lay audiences can understand the importance of what’s involved with, say, bringing a novel therapy to market. (Read some science communication tips in one of my earlier blog posts.)
The thriving financial side of the regenerative medicine industry is also revealed in ARM’s Annual Report:
- The regenerative medicine sector raised a record US$19.9B in financings in 2020, representing a 50 per cent increase over the previous record.
- Publicly traded regenerative medicine companies saw about a 44 per cent increase in performance in 2020.
- The most common financings by deal type included follow-ons (US$6.0B), initial public offerings (US$3.7B), venture capital (US$5.6B), partnerships (US$3.0B), and private placement (US$1.2B).
Upon review of these impressive results, it has dawned on me that to understand the industry as a whole, a regenerative medicine company must consider its financial communications to be just as important as its science communications.
Financial communication is aimed at present and potential shareholders and investors. Its purpose is to support and, above all, to strengthen the company’s stock market value and prospects, but also its credibility to shareholders and investors.
Without clearly painting a picture of a company’s financing, collaborations and deals, its external audiences would not have a full picture of its value. Investor interest and the potential for strategic deals could be stifled. This matters because, without financing, companies would not be armed with the necessary resources – including people, equipment and facilities – to take discoveries from the bench to the bedside.
As ARM says in the report, “… developers translate these financings into scientific advancements and — ultimately — therapeutic benefits for patients.”
Although regenerative medicine companies likely engage an investor relations expert when developing their financial communications strategy, here are three key principles that scientists should be mindful of when sharing financial information becomes critical to your company’s success:
- Abide by regulations: Communicating about some types of financial information is defined by very precise rules, while other types of financial information are covered by the application of broad principles that are up for interpretation. Your organization’s communications expert will be well-versed in these nuances as the strategy is crafted.
- Share information strategically: Announcements related to funding, investments or milestones will be considered carefully before being made public. This is particularly important if a company has securities that are traded on a regulated market, as news may have a material impact on its share price.
- Defer to your company’s communications expert: It might be difficult to know what information – both science and financial in nature – can be shared externally. Before spreading the word, first check if information has already been “officially” released publicly, such as in a news release that’s been issued by your company, or ask your communications expert or company leadership.
Want to learn more about financial communications? Here’s an explainer on the importance and nuances of financial communications, shared by an expert in the field. Although it was created in 2013, the principles of good financial communications described within it still stand.
Laine Bodnar
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