Written by Kevin Hampton, Director of Marketing, Kineticos
As we approach the release of the Q3/Q4 Biopharma CEO Confidence Index results, I wanted to provide a sneak peek of a couple topical questions that were added to the study. This was the first study that we included questions about timely events, and what a great time to implement this enhancement! Not only did the Brexit determination occur just prior to the start of Q3, but, soon after, focus shifted to (or back to) what would turn out to be the most captivating, and controversial, presidential campaign in quite some time.
We felt the industry would find value in gaining insight into what impact – positive or negative – some monumental events may, or may not have, on our sector. Hence, we asked our loyal biopharma CEO respondents how they anticipated Brexit and the 2016 Presidential election might impact their business and the overall industry. Let’s take a quick look at the data from an overall industry perspective.
Table 1 shows that there were far more CEOs that felt the Presidential election would have a greater impact on the overall industry than Brexit. Three important things to note here before I go further:
- The overwhelming majority of our respondents represented small US based biotechs.
- This data doesn’t tell us what kind of an impact (positive or negative) CEOs are expecting, as we did not want to put our respondents in a situation where they were asked to share their opinions on potentially controversial topics.
- All 51 respondents submitted their responses prior to the election itself, and the majority of them responded even before the debates started to heat up.
Focusing on just the Presidential election data, if you use the SPDR S&P Biotech XBI as an indicator for short-term impact, the 73% of CEOs that anticipated some sort of impact were spot on. On November 3rd, when the general public was convinced Hilary had it in the bag, it was at 53.13. Fast forward to the 14th, less than a week after she conceded to Trump, the index was at 68.13. I know that doesn’t tell the entire story, but I’d certainly consider a 28% swing in that short amount of time an impact of some degree. It will be interesting to evaluate other indicators along with long-term impact post-inauguration. I anticipate getting an overall sense regarding the sentiment of the industry while in San Francisco during JP Morgan week.
Ok, I said this would be a sneak peek. The full Q3/Q4 results report, which will cover our standard topics, and delve into how CEOs expect the above events to impact specific functions within their business (ie fundraising, regulatory, etc.), will be published on www.biopharmaCEOConfidenceIndex.com in the coming weeks.
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Kevin Hampton, Director of Marketing, leads Kineticos’ marketing efforts and is focused on building a brand that reflects Kineticos’ deep life science expertise and passion for improving patient outcomes. Mr. Hampton is responsible for the strategy and execution of Kienticos’ thought leadership and lead generation programs and also supports the sales function within Kineticos to ensure objectives remain aligned.