Pharmaceutical Investor Relations: The Power of Video in Investor Communications

The transparency that a pharmaceutical investor relations video strategy provides is a trust-builder that can help bolster the reputation — and the share price — of a company.

Video Engages Pharmaceutical Investors

Investors can spend hours staring at numbers, reading annual reports, and tracking market trends. Videos cut through the noise, especially when those videos are created specifically for them.

Will a great video get an investor to make a risky trade? Probably not. Let’s be honest, the driving force of a purchase decision will always be ROI.

However, a great video can get an investor off the fence or help him or her feel comfortable weathering a temporary storm.

The pharmaceutical sector comes with unique risks for investors. When a clinical trial fails, an FDA approval doesn’t come through, or healthcare policy changes, it’s easy for investors to cut their losses and sell. However, a company that has laid the groundwork with a strong investor relations video strategy can explain why these seemingly major developments are simply temporary setbacks.

Putting the CEO or other executives on camera shows pharmaceutical investors that there is a strong team keeping the company on track. Highlighting a company’s meticulous standards and sophisticated manufacturing facilities helps investors feel confident that the company is hard at work, helping patients.

Use Cases of Video in Pharmaceutical Investor Relations

1. Annual Reports and Financial Updates

The best investor relations professionals understand that, even in a data-centric world, you still want the numbers to tell a compelling story. This is why video and IR can go hand-in-hand.

Video can give context to complex data and your company’s financial health. And, importantly, hearing directly from the CEO, CFO, or other executives will help investors see that the team has a plan to keep returns on track.

2. Investor Day Presentations

Investor days can be incredibly valuable when executed properly. At their best, they ensure investors are engaged and energized. At their worst, they become a series of dull presentations that all start to sound the same. A great video can break up the day and reengage participants.

More importantly, not every executive is great in front of a crowd — this is where video comes into play.

A strong director can coach an executive through a video interview and the editor will cut out any mistakes, keeping only the best parts. This process ensures that you have control over the message and your executives end up looking confident, away from the pressures of a live-audience.

3. IPO Announcements

An Initial Public Offering is a pivotal milestone for a company. A video can set the tone for the day and let investors know that they can expect transparent communication from your company.

During these highly-visible moments, publicly-traded pharmaceutical companies can face reputational problems. Customers may wonder if an IPO means putting investor returns over patient care.

Video can help the public understand that this milestone will, in fact, allow for new medical advancements while also getting investors excited about the potential for growth.

4. Crisis Communications

When something goes wrong, your crisis communications team will determine the best path forward, which may include video. Because a timely response is critical in these situations, previously shot footage can be a powerful tool to have on hand.

Investor relations professionals who have already implemented a video strategy will have a whole library of footage to use, if necessary. This could even allow you to get a message delivered to investors before the market reopens.

The process of restoring stakeholder trust will always take time, but the sooner you can get started, the better.

5. ESG and CSR Initiatives

ESG and CSR still matter to many investors, and stories of sustainability and community outreach make powerful videos. Sometimes, these videos can even help wary investors understand the tangible, long-term benefits of these programs.

In the pharmaceutical space, you might highlight free or reduced-cost programs that help patients around the world access your medicines. Or you might create a video showcasing how your company ensures that this chemical-heavy industry goes above and beyond to protect their local environment. Seeing the direct impacts of these programs can secure investor buy-in to ESG and CSR initiatives.

Summarizing the Benefits of Video in Pharmaceutical Investor Relations

• Better Engagement – Video simply captures attention more effectively than traditional reports, even for the most number-minded investors. It’s not designed to replace the reporting, but supplement and summarize.
• Trust and Transparency – Investors don’t always understand the science or regulations of the pharmaceutical industry, and confusion can breed distrust. Video helps demystify the R&D and manufacturing processes and shows investors that your company is a safe bet.
• Storytelling – Video can tell a compelling story of your past achievements, but more importantly it can showcase a vision for the future. Investors need to feel confident that they will see returns, and while you can never guarantee future results, you can help them feel confident in your trajectory.