When a newly public medical device manufacturer failed to generate investor interest–despite a recent FDA clearance–the company sought SMA’s counsel to identify the issues. We recommended conducting a perception study and then applying the results of the research to correct misperceptions, refresh messaging and drive investor awareness in the U.S. and Europe.
Client Challenge
Raise awareness and build a solid following on Wall Street
Despite being public for a year, the company had attracted little institutional interest and no sell-side coverage beyond the two investment banks that underwrote the IPO.
The lack of interest presented a significant problem for management, who were counting on a valuation lift following recent FDA clearance of the company’s important new device.
The Sharon Merrill Advantage
Develop investor communications using a base of perception research
SMA’s proprietary STREETSCOPE® perception survey uncovered a number of negative perceptions contributing to the lack of investor demand for the company’s stock. The survey’s findings helped to identify performance benchmarks relating to management, product marketing and other critical areas the company needed to achieve to build a following.
SMA worked with the CEO and CFO to create benchmark-specific messaging that clearly demonstrated the company’s management strength, product superiority and growth potential.
Results
A surge in investor requests for meetings with management
SMA identified and targeted 350 institutional investors to receive communications based on the refreshed positioning and messaging of the perception survey. These communications included introductory emails and follow-up phone calls, meeting invitations, analyst advisories and press releases. In excess of 15 percent of U.S. and EU investors with no previous interest requested meetings with management or more information about the company, a success rate more than double the industry average for such first-time communications.
