Should a Biotech Company’s Market Capitalization Be Considered in a Career Move?
With much of biotech news focusing on a down market and several prominent companies having recently failed to hit primary endpoints, it begs the question for those seeking employment in innovative therapeutics companies particularly – how important is market cap and share price when evaluating prospective employers? Market swings certainly don’t imply that companies don’t need talented individuals on board. If anything, talent is needed more than ever to oversee processes in discovery and clinical development that can improve upon current protocols, catch data oversights, and translate innovative thinking into best practice.
It's easy to get caught up in the dream of making huge gains, or the intriguing stories of how a company's products can change the world (Murphy, 2021). Yet due to the complex nature, long path to profitability, and regulatory scrutiny of biotech companies, it’s near impossible to base a good career move on a trending sector that’s highly valued, or the glitz and glam of going public early on.
As a biopharma professional, it’s so important to get clear on your personal values as new opportunities come your way. Are you a risk-taker or do you like to play it safe in a well-established, stable company? Are you someone who likes being part of a dynamic culture where you will be expected to contribute your unique strategy and expertise, or do you prefer a more ordered and predictable role? Would you like to explore the development of cutting-edge, next-generation medicines or do you prefer to continue building on well-established science for expanded therapeutic potential?
Overarching input from candidates we speak to tends to be rather than focusing on market trends and stock trader opinion, fall back on personal truth: How does the underlying science speak to you and what is your inclination for risk? Additionally, from an executive search perspective if you’re hesitant, then what are the balance sheet, data readouts, and SEC filings saying? If they are compelling, then look at your career move and the share price objectively – what’s the assessment over the next 3-5 years? In this way, you’re investing in biotech stocks like you would your own career.
Because of the unpredictability of success for an emerging biotech company, fluctuations in share price are expected depending on several factors, including notoriety of the founding team, how novel the science or platform is, current speculation about trending therapeutic areas, and news about milestones in similar companies. Ultimately, we need to realize the public markets are based on macro and emotional trends, when a particular sector goes crazy and then stalls, this will be reflected in its share price. Rather than letting your decision be made from the myriad opportunities available to you as a biopharma professional, let your values, interests, and long-term career objectives guide your decision-making.
The life sciences executive search consultants at BayBridge are passionate about listening to and discussing what it is you are seeking in your next role in the biotech industry. We work with a Talent Management approach, which aims to deeply understand what it is you want from your career in the next 3-5 years, to place you in the roles that best suit your desired level of growth and development. If you’re interested in learning more about our Talent Management approach to executive search, please get in touch with one of our expert consultants today at www.Baybr.com or through our social media on LinkedIn or Twitter.
References
Murphy, C. (30 October 2021). The ups and downs of biotechnology. Investopedia. https://www.investopedia.com/articles/trading/06/biotechsector.asp
