The Third Pillar of Biotechnology Equity Research
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| Title: | The Third Pillar of Biotechnology Equity Research | |
| Author: | Eric Staeva-Vieira, PhD | |
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The third Pillar of Biotechnology Equity Research is effective communication skills. Whether you are writing a research report or talking to investor clients regarding your thesis on a particular company, you need to be able to clearly and accurately communicate your ideas. One thing I think we take for granted as scientists is the tremendous amount of experience we get from writing research papers, presenting posters or giving seminars about our scientific discoveries. During each of these exercises, we are educating an audience on our findings and defending our thoughts and ideas. As an equity analyst, we are put into many situations where the skills of effective communication are put to the test.
I recently made the move to a new job, still in equity research, but now as a senior research analyst for an independent research firm (Majestic Research). Yes, the big leagues. OK, some may say that's not the big leagues…those bulge bracket firms like Goldman Sachs and JP Morgan are the big leagues. I'd beg to differ. But that's a discussion for another day.
If you are not familiar with the rank and file of equity research careers, the senior analyst is like a principal investigator. I am now responsible for initiating research coverage on companies, leading a team of research associates and speaking directly with investor clients. I am the main author of our research and the point person when inquiries come in from clients in regard to our findings and investigations.
As with any move up, I have added responsibilities and stresses. My name is on those reports, and it is my team's work being exposed for all to see. I need to make sure the reports are written clearly and to the point with no errors. OK, we're all human. Errors do pop up occasionally, but you better not make too many and they better not be significant or your career will not last very long on the Street. Remember, the role of an equity analyst is to deliver investment advice or information that will provide transparency into a company's operations that the clients could not obtain from traditional sources, like quarterly and annually SEC filings or management conference calls. Investor clients are placing big bets on your ideas and if you're wrong they could lose a lot of money in the process..
But alas, you have been put into this situation many times before. Every submitted research paper/poster or seminar you have given during your scientific career was scrutinized, either by a panel of fierce, opinionated editors (most likely some of the thought leaders in your discipline) or your peers. You have been put on the hot seat to defend your thesis, or have been asked to educate a group who may not have as much knowledge in a particular area as you and therefore you needed to adjust your delivery so that all would understand the significance of your findings. This is an invaluable skill and one that will help you go far as an equity analyst.
Equity analysts speak to a broad range of investors. Some may be specialists (many having PhDs or MDs along with their MBAs or CFAs) who invest only in biotechnology or the pharmaceutical industry. Others may be generalists (MBAs or CFAs) who understand company fundamentals but don't know the first thing about monoclonal antibodies or epigenetics. So, it is extremely important for you, if you are considering a career in equity research, to have the mentality of an educator. One who can readily adapt to all levels of knowledge and educational backgrounds. This may be a challenge for some of you, if you've spent the last 4, 6, 8 years only speaking with scientists. But if you have been successful at getting your relatives, including your 8 year old niece or nephew to understand your PhD thesis, then you are on your way to a successful transition into the world of equity research.
But one last bit of advice. If your English language skills (both written and spoken) are not good, you really need to brush up, unless you are intending to go work for an equity research firm in a country of your first language (which is a possibility since the equity markets is an international affair). But if you are set on staying in the US, you better have written and spoken English fluency. I've known too many equity research associates that have had terminal careers due to their lack of effective communication in English.
Remember, all those grueling nights putting the final touches on that poster, the 15th edit to that manuscript you submitted and resubmitted to Nature, or the lashing you received from your thesis committee were all just an invaluable exercise to help perfect your communication skills. These experiences, no matter how severe and ridiculous you thought they were at the time, have helped you become a better communicator. I can tell you that that is more than what most MBAs are put through before they get their breaks on the street. Good communication skills, along with the other two Pillars of Biotechnology Equity Research, are fundamental to the career. Good Luck! |
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Eric Staeva-Vieira, PhD, is a Vice President / Senior Pharma & Biotech Analyst for Majestic Research, an independent equity research firm on Wall Street. Before joining Majestic, Eric worked as a biotech analyst on the traditional sell-side for Lazard Capital Markets and Rodman & Renshaw, both healthcare-oriented investment banks. Prior to his move on Wall Street, Eric was the program manager of the New York Academy of Sciences’ Science Alliance, a career and professional development program for scientists. In 2003, he received his PhD in developmental genetics from New York University. His research focused on the link between genome stability and development using the Drosophila melanogaster, more commonly known as the fruit fly.
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Copyright, 2007, Eric Staeva-Vieira, PhD Published with permission |
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