Hannah Deresiewicz | EVP, Managing Director, IREC
Biotech is moving again. After several years of dislocation, capital has returned – selectively, but meaningfully. Mergers & Acquisitions (M&A) activity is running at one of the strongest paces in recent history, resetting investor appetite for the next wave of opportunities; follow-on markets are rewarding good data and strong execution; the IPO window has reopened for companies that meet today’s higher bar, reinvigorating private markets; and public market performance has improved significantly. The SPDR S&P Biotech ETF (XBI), a commonly cited proxy for emerging biotechnology sentiment, has recovered considerably and recently reached levels not seen in several years, reflecting renewed investor willingness to underwrite risk and reward differentiated innovation.
However, the landscape looks different today, having emerged from the depths of a prolonged downturn healthier and governed not by fear, but by substance and discipline. The companies attracting capital are more advanced, more focused, and better able to translate exciting science into real, tangible opportunities.
In this environment, with a pool of stronger companies and more selective capital, it is essential to position strategically to stand out. The market is working again, but it will best serve companies that are prepared to navigate it.
Today, we are carrying lessons learned from the past few years, with the understanding that companies are operating with greater discipline and investors are holding them to higher standards, indicating a stronger market.
Now, capital requires more than promising science. Investors are prioritizing companies with an advanced profile, meaning:
These shifts do not mean companies need to be commercial or near commercial to engage investors, but it does mean they must demonstrate where they are on the development curve and what it will take to move forward. The companies breaking through are those that can clearly articulate not just how their science works, but why it matters now, to whom, and how it will ultimately translate into value.
One of the most common missteps remains treating investor relations (IR) as a transactional function – a feature to turn on ahead of financing. Many companies spent the downturn focused appropriately on cash preservation and operational execution. As markets improve, however, visibility and investor engagement become increasingly significant competitive advantages. Companies that wait until a financing is imminent often find themselves building relationships from scratch. In today’s market, that approach is increasingly costly.
Market windows are open again, but they are selective and often short-lived. Companies entering them without a foundation are at a disadvantage, as investors back teams they already know, understand, and trust.
Engaging IR early allows companies to:
In a recovering market, preparedness is the differentiator; it’s easiest to engage – and raise capital – from a position of strength.
Even in an improving market, raising capital is not easy due to fierce competition and a limited window to establish credibility. To stand out from the crowd, this means refining the story, aligning it with strategy, and ensuring leadership teams are ready to meet investor scrutiny. For leadership teams, the mandate is straightforward: be disciplined, be consistent, and be prepared.
Strong IR programs help convert complexity into conviction, connecting clinical milestones to value creation, framing risk thoughtfully, and reinforcing trust through consistency. In today’s market, substance matters most, while data and execution remain the foundation. However, the ability to communicate both clearly and confidently is what separates companies that gain traction from those that don’t.
The fundamentals of effective IR do not change, regardless of market cycles:
These principles make a story investible regardless of the market’s ever-evolving risk appetite. A strong IR program amplifies these fundamentals, establishes a clear “why now,” and builds the credibility and relationships needed to capitalize when opportunities emerge. It aligns visibility with substance, recognizing that the groundwork laid today supports future growth, value creation, and impact. The question is not whether opportunity will emerge, but which companies will be positioned to capture it.
At Precision AQ, our Investor Relations and External Communications (IREC) team helps biotech companies communicate with clarity and position for growth. From engaging the right audiences to driving lasting visibility, our team lays the foundation for long-term success. Contact us today to learn more.