Campbell Alliance Helps Biotech Firms Raise Capital in Equity Markets


RALEIGH, N.C., Aug. 1, 2001 (PRIMEZONE) -- For many biotech firms, raising capital for development activities is crucial. In today's sluggish equity markets, however, access to capital has become much more difficult. Campbell Alliance, a management consulting firm specialized in the pharmaceutical and healthcare industries, is now helping biotech firms to strategically address analysts and investors alike in order to succeed in today's tough equity markets.

Biotechs have been hit hard by the current bear market. "Since its 52-week high in September of 2000, the Nasdaq Biotech 100 has plummeted 35%. This drop in investor interest has seriously hampered the ability of public biotech firms to raise additional capital. Many private firms have decided to delay their IPOs and wait for better days," said Erik Verhoef, a former stock analyst and current manager at Campbell Alliance.

Few biotechs, however, can afford to wait long, since most rely on investment capital to continue operating. Many firms are now turning to less attractive means of raising money, including standard debt and convertible debt.

These alternative methods of generating capital carry inherent risks. "Any type of debt brings with it commitments and expenses, like interest, that are different and typically more onerous than those associated with raising capital in the equity markets. Convertible debt, for example, carries a serious dilution risk and can hurt the value of a company's stock once it converts," Verhoef said.

"In most cases, the equity markets remain our clients' best option for generating capital -- even in today's difficult environment," Verhoef reported. To tap into this source of funding, however, firms must come equipped with a powerful investor relations strategy. The Campbell Alliance Investor Relations Practice can provide assistance.

"Helping these firms to succeed from an investor relations standpoint is our group's sole focus," said Verhoef.

Campbell works with biotech firms to translate each client's complex "science story" into messages investors can understand that explain how the company's scientific leadership will translate into shareholder value. Campbell also helps clients reach out to analysts in order to attract new or enhanced coverage.

Over time, Campbell Alliance works with its clients to develop the in-house expertise necessary to run successful IR programs on their own. Rather than provide outsourced IR services, such as writing press releases and fielding investor phone calls, the IR Practice works collaboratively with clients to create more effective research reports and IR presentations, and strengthen all aspects of the client's internal IR capabilities.

"A strategic approach to IR will position biotech firms to succeed," Verhoef said. "Campbell can help firms become more sophisticated, more effective, and more self-sufficient in their approach to this crucial function."

Based in Raleigh, Campbell Alliance boasts a clientele that includes the world's leading pharmaceutical and healthcare companies, as well as technology companies with pharmaceutical and healthcare interests.

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CONTACT: Campbell Alliance, Raleigh
         Craig Dunkley, Marketing Director
         Phone: (919) 844-7100
         E-Mail: cdunkley@campbellalliance.com