Biotech Firms Search For 300 New Board of Directors in Next 2 Years
A strong board of directors is needed for every business. In Biotech, a combination of c-level executives with a background in R&D is hard to find. Good training and talent are important for every board room.
According to a recent article at Forbes.com, “the ‘half-life’ of a recent IPO’s Director is about four years. In other words, within the first four years or so post-IPO, ~50% of the Board of Directors on a newly public biotech Board have departed and been replaced.” In the article goes on to say that “in its 35 year history ever needed as many new Board Directors as it will in the coming two years.”
A board of directors needs to be the right mix of independents with talent, experience and objectivity. Board members that include a diversity of females and minorities often strengthen a company over nepotism and friends. The ability to manage challenges within the company, industry and financially strengthen when stakeholders have proper funding to increase sales pipelines and manage capital expenses for research and development.
In a recent Wall Street Journal article “companies only recently began to focus on recruiting independent directors with industry expertise.” The article states that “after a wave of corporate scandals a decade ago, they were going after financial experts and outside executives. Before that, boards were often dominated by the CEO’s chums.” Board diversity is critical to improving the stakeholders long term growth and stability while making strategic decisions. Board members with industry experience can be better at monitoring the CEO and help with overall governance.