The situation: Depomed, a publicly held specialty pharmaceuticals company, had been on a trajectory of extraordinary growth since 2012—acquiring five products and increasing products sales by more than 1,000 percent. Yet, investors were largely unaware of this impressive expansion, instead tainted by the company’s prior history of stodgy stock performance. The company wanted the market to embrace its new story and leave the past behind. CanaleComm took a seat at the table to help achieve this goal through a new approach to investor communications.
The plan: CanaleComm reframed the Depomed story to focus on its path of positive growth and identified a need to move away from the purely transactional communications of the past, which addressed corporate events and milestones individually and without broad context. This new approach included framing the company’s $1 billion acquisition of a high-profile pain product, NUCYNTA, from Johnson & Johnson in early 2015. We then helped Depomed tell its story through multiple channels, encompassing dynamic quarterly reporting that placed attention on the corporate narrative as much as the financials; a new communications toolkit, including a compelling investor presentation; and consistent and coordinated communications including press releases, investor presentations, quarterly earnings webcasts and one-on-one meetings with investors.
The results: Depomed’s sell side analyst coverage increased from four in 2013 to the current seven. Message resonance in analyst research and financial media coverage has highlighted the transformation at Depomed, including reports by JMP and Janney and major articles by Motley Fool and Investor’s Business Daily. Depomed surpassed the $1 billion market cap threshold in Jan 2015 and is projected to soon become top-five in the U.S. pain market based on industry revenues figures.