68% of investors say healthcare companies communicate poorly
Edelman released a special Confidence Barometer report that predicts investors will continue to view healthcare as an attractive sector even though they believe healthcare companies are not communicating effectively.
More than two-thirds of investors say healthcare companies have communicated poorly, and 61% believe most healthcare companies are unprepared to change that, according to a survey of 225 investors in November and December 2021 in the States. United States, United Kingdom and Canada. .
Seventy-eight percent of respondents also said their company would not invest in companies that do not provide sufficient operational and/or performance information.
“It tells us from the start that your corporate communications – whether corporate, investor or your [environmental, social and governance] — are really important in making sure investors have access to the information they need to be persuaded before investing in your business,” said Shannon Susko, Managing Director and Co-Head of Strategic Situations and Investor Relations. investors and head of healthcare at Edelman. Smithfield, which focuses on financial communications.
Still, 78% of investors increased their allocation to healthcare during the COVID-19 pandemic, and they find the areas of pharmaceuticals and medical devices and healthcare equipment particularly attractive, the report said.
“Healthcare has always been very well insulated as a sector and has had strong performance in both good and bad economies, and I think we’re seeing that reflected in this data,” Susko said.
Nearly 90% of investors also expect healthcare companies to be able to innovate faster, judging by what they have accomplished during the pandemic, the report said.
The rapid development of the COVID-19 vaccine was a “galvanizing moment,” Susko said. “Investors think the speed and pace of the innovative sector has increased since the pandemic, and they think that increase will at least last as long as we’re rampant.”
To stand out in this hot sector, healthcare companies must ensure “clear and consistent” investor relations; a strong and multi-channel communication strategy; performance updates; and consistency in using channels to provide access to clear information, Sukso said.
“We want to make sure that the companies we are able to help prioritize their communications, that they are consistent in those communications,” Susko said.
The study also revealed that:
• Investors use five to six sources, including a company’s website and investment portfolio, to evaluate potential healthcare investments.
• Eighty-four percent of respondents said that before investing in a healthcare company, they must be convinced that the company is taking proactive steps to have a positive impact on society.
• More than two-thirds of investors said that strong leadership and a clear vision for the future are the most important elements in building trust in a healthcare company, second only to financial performance.
This story originally appeared on PRWeek US.