Biotech stocks made up a big chunk at the annual “reconstituting” of the Russell 3000 Index. Each year around this time, the Russell 3000 is reconfigured and stocks are added to or removed from the widely held index.
The list of preliminary additions to the index includes 262 companies, of which 46 are healthcare companies. (You can find a list of all the preliminary additions and deletions here.)
Ziopharm Oncology (NASDAQ: ZIOP) Inc., one of the darlings at the recent American Society of Clinical Oncology meeting, was among the biotechs set to join the list. At ASCO, Ziopharm presented data for its treatment for patients with soft-tissue sarcoma, which showed that when used together with chemotherapy drug Doxorubicin, the progression free survival rate is doubled. The company said its clinical trial was stopped early because of the positive response rate. Ziopharm shares were up 2.7 percent to $4.78 in afternoon trading Monday.
Keryx Biopharmaceuticals Inc. (NASDAQ: KERX) is another biotech to make the list. Perifosine, the company’s potentially first-in-class treatment of advanced colorectal cancer, was fast-tracked by the Food and Drug Administration in April. In May, analysts at Rodman & Renshaw reiterated their “market outperform” rating on Keryx. Its shares were up 6.5 percent to $4.34.
Another stock to watch is Pharmacyclics Inc. (NASDAQ: PCYC), which has had its struggles with the failed clinical trial of its former lead product, Xcytrin. (A failed trial, or failure to secure FDA approval, is typically a death knell for tiny biotechs.) Since then, the company’s brought on new management and acquired some preclinical, early-stage treatments from Celera (NASDAQ: CRA). Preliminary data on two treatments for hard-to-treat lymphoma have been greeted positively by researchers, and the company’s now being called a “comeback kid” by some on Wall Street. Pharmacyclics shares were up 1.1 percent to $6.48.
Among other biotechs on the preliminary addition list that have been recently in the news are Alexza Pharmaceuticals Inc. (NASDAQ: ALXA); AVEO Pharmaceuticals Inc. (NASDAQ: AVEO); BioSante Pharmaceuticals Inc. (NASDAQ: BPAX); Jazz Pharmaceuticals (NASDAQ: JAZZ); and Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM);
Membership on Russell U.S. equity indexes is determined by objective means, such as a company’s market capitalization. Still, inclusion in the index tends to pump up stock prices due to forced institutional buying. That said, inclusion in the Russell indexes is no guarantee of long-term — or even short-term — performance. Indeed, the “Russell Effect” is often muted because shareholders tend to sell into the rally to benefit from the short-term spike in price.
The real value to biotechs is the exposure inclusion into such a widely held index will bring. Michael West, chief executive officer of BioTime Inc. (NASDAQ: BTIM), said in a statement, “The expected addition of BioTime to the Russell 3000 Index and Russell Global Index could benefit our shareholders by increasing awareness of BTIM among institutional investors, and the investment community in general, as we continue with our strategy to become a leader in the field of regenerative medicine.”
BioTime’s shares were up 7.5% to $6.88 in afternoon trading Monday.
Changes to the additions could still be made, and updates to the preliminary list are scheduled to be posted June 18 and June 25. The final membership lists for the Russell 3000, the Russell 2000 and the Russell 1000 will be posted June 28. With the changes, the combined market capitalization of stocks in the Russell 3000 — which reflects about 98% of investable U.S. equities – will grow to $13.4 trillion from about $10.6 trillion a year ago. The median market cap of companies included in the index will also increase to $802 million from $578 million.
Some people have it. Others don’t. A handful of charismatic reps simply know how to charm the apathetic, convert the resistant and quickly develop the relationships needed to succeed in the pharmaceutical industry. In other words, these reps have an ability to establish “rapport.”
Sometimes rapport comes easily, like when you see a photo of a doctor’s sailboat and you happen to be an avid sailor. Sometimes rapport is more difficult. For example, you can probably think of several physicians who have never warmed up to your presence—even though you’ve given it your best shot.
This article provides five proven strategies for taking your rapport-building skills to the President’s Club level. As you will see, the ability to develop rapport is not only an innate talent, but also a skill that can be learned, practiced and perfected.
Strategy #1: Quickly Establish Similarities
Some of the most charismatic reps are masters at quickly finding similarities between themselves and others. Are you meeting a physician for the first time? Are you having challenges connecting with an office member? Reps who have the ability to quickly bond with others have a natural tendency to find commonalities.
“The essence of trust building is to emphasize similarities between you and the customer.”
Thomas J. Watson
Founder, IBM
Almost any similarity has the potential to ignite a spark. One rep had a hard time connecting with a physician. The rep said, “No matter what I did, the physician seemed to have a general disinterest in what I had to say.” After asking the staff for background on the physician, she discovered a similarity—both were married to men from Germany. During her next lunch, the rep brought up the similarity. It sparked a great conversation and the beginning of a strong relationship. “Now,“ said the rep, “I look forward to seeing her and she looks forward to seeing me. It’s amazing how one little thing has helped us bond.”
When you uncover things you genuinely have in common with physicians and office staff—hobbies, background, beliefs—you will find yourself drawn to them. In turn, they will be drawn to you. Similarities create relationships.
Strategy #2: The Popularity Factor
Have you ever been at a party when a stranger walks into the room and a friend says, “Oh, there’s Pete… he’s such a great guy”? What’s your new impression of Pete? You probably feel that Pete is a great guy—even though you’ve never met him!
The same process happens in offices. What happens when the receptionist says, “Oh, there’s Michelle, she’s our favorite rep”? Now everyone is on your side. People follow the lead of others. If the receptionists like you, the nurses will like you. If the nurses like you, the doctor will like you. Popularity is contagious.
Becoming appreciated by the total office pays off in countless ways. You’re treated with respect; you’re given priority for lunches and appointments; you’re provided superior access. In the meantime, you create enduring relationships.
Here are a few ways to put the power of popularity on your side:
Send a signal. When a doctor sees that you are popular with the lab tech, popular with the receptionist, and popular with the nurses—there’s only one conclusion the doctor can make: you must be a pleasure to deal with! Now the physician is more open to a relationship with you.
Jot it down. Remembering names and personal details of office staff members is one of the most powerful things you can do. When you know someone’s first name, they know you care. One rep said, “I jot down the names of office staff and one thing I discover about each person I encounter. It’s amazing what a difference it makes.”
Everyone counts. Treating everyone in the office with respect is not only the right thing to do, it’s also a smart business decision. I asked one area manager why her top-performing rep won President’s Club several times. The manager said, “She is nice to everyone. She treats the receptionists with as much respect as the physicians. You should see it. They want to help her.”
Strategy #3: Mirror Nonverbal Behavior
Can you build relationships by “matching and mirroring” the body language of physicians? Proponents of the matching and mirroring theory say that if you match the body language of your physicians, they will feel a bond with you. For example, if the doctor takes a relaxed posture, you should take a relaxed posture; if the doctor speaks slowly, you should speak slowly.
Does it work? Could something so simple really be effective? In one study, reported in The Journal of Experimental Social Psychology, researchers helped waiters match and mirror the behavior of their customers. Tips were increased by 60%. In a separate study, subjects who were “mirrored” consistently reported their interactions to be smoother and more pleasant.
This strategy of matching and mirroring is particularly helpful when you feel your personal style of self-expression is at odds with the physician. Trent Sanders, a specialty rep in Columbus, Ohio, reported how he resolved personality differences with his physicians. He said the following:
“I have a very expressive personality. I gesture. I talk quickly. I can be pretty dramatic. I’ve noticed, especially when I’m with a shy physician, that if I match the physician’s nonverbal behavior, the interaction is more successful.”
When you’re really good—when the physician is totally in sync with you—you will notice that the physician mirrors your body language. When you fold your arms, he will fold his arms. When you sit at a certain angle, he sits at the same angle. That’s when you know you have rapport.
Strategy #4: Feel Free to Compliment
Think about the last time someone gave you a really nice compliment. Now, think about the person who complimented you. How do you feel about that person? You probably recall positive thoughts and feelings.
Compliments are wonderful things. Not only do they help people feel good about themselves, but they also help speed the rate at which relationships develop. So the question is—are you integrating compliments into your day?
“There are two types of people—those who come into a room and say, ‘Well, here I am,‘ and those who come in and say, ‘Ah, there you are.’”
Frederick Collins
While shopping in Mexico one day, a one vendor called out to me, “Hey Hollywood movie star, come look at my stuff.” Although I look nothing like a Hollywood movie star, the compliment made me like the vendor. I purchased some of his products. One study published in the Journal of Experimental Social Psychology showed that compliments increase liking, even when the compliment is perceived to be inaccurate!
The point, of course, is not to provide insincere compliments, but to realize that sincere compliments are incredibly powerful tools for building relationships. Is the receptionist wearing an attractive bracelet? Let her know. Do you like the nurse’s new hairstyle? Tell her. Do you find that the physician is more articulate than most? Make it a compliment. When you get into the habit of complimenting people, you will be surprised at how they gravitate toward you. In the process, you develop stronger relationships.
Strategy #5 : Make Some Mistakes
University of California psychologist, Dr. Eliot Aaronson, has shown that we are attracted to competent people, but we are likely to form relationships with people who also show a vulnerable side.
When I first started my career in pharmaceutical sales, I became friends with a very popular rep named Glen. Glen wasn’t the typical rep. In fact, some people jokingly called him “scatter brained.” Nevertheless, Glen was a top performer. People loved him for his personality. Although he was extremely bright, he was always making fun of himself. He had an amazing ability to smile and laugh at his own behavior. As I think about him now, it makes me grin.
Have you ever noticed how people warm up to you after you share a funny story about yourself, especially when you share a story about one of your more comical mistakes? It helps them relate to you. It let’s them know that you’re human. If you want to form bonds more quickly, make sure that your offices see your human side. Use self-deprecating humor. Share one of your occasional blunders. And of course, never be afraid to admit that you made a mistake, or don’t know an answer.
Conclusion
Rapport is one of the essential ingredients that separates good reps from great reps. The good news is that everyone can learn the skills they need to build rapport with their doctors – even the challenging ones! As you apply the principles in this article, you will begin to notice yourself meeting more people, creating more connections and developing the type of relationships that make pharmaceutical sales enjoyable.
TEXT BOX:
“Rapport: relation marked by harmony, conformity, accord, or affinity”
- Merriam-Webster Dictionary
Please note that this article was written by two authors,
Scott Edwards and Sarah Taylor.
Scott Edwards is the author of the new book, Pharmaceutical Sales Solutions, a guide packed with insider secrets for gaining access and selling to busy physicians. For two FREE chapters from his book—go to www.GreatPharmaReps.com
great article for us on the cell phone all day!
By MADISON PARK, CNN.COM
If your pinkie and ring fingers tingle or feel numb, you might not want to pick up that cell phone to call the doctor.
“I thought: ‘I’m turning old and falling apart,’ ” Malloy said.
Constant cell phone use could “stress out the ulnar nerves,” said Dr. Leon Benson, an orthopedic surgeon and spokesman for the American Academy of Orthopaedic Surgeons. The ulnar nerve, which travels through the forearm and branches into the hand, can become weakened and scarred after being stretched repeatedly.
“The more you bend it, the more it stretches,” Evans said. “It diminishes the blood supply, and the blood is not flowing through the nerves.”
While the nerves are designed for stretching, “it’s not normal to be in a position to be stretched for an hour,” Benson said.
People with severe cases of cubital tunnel syndrome, like Malloy, require surgery. But most cases require simple behavioral changes. The condition is not as common as carpal tunnel syndrome, which affects nerves in the wrist.
This doesn’t mean that cell phone use is dangerous, doctors said.
“It’s like anything else, any sporting activity,” Benson said. “You can hit balls at the driving range — just don’t hit 300 of them, because you’ll be sore. So common sense would dictate not to talk on the phone for hours if your small and ring fingers go numb.”
After surgery, Malloy said her hands are “fine now. It doesn’t bother me.” She still talks on her cell phone, but she uses a Bluetooth headset.
Cubital tunnel syndrome doesn’t affect only cell phone addicts.
Elderly people who rest their elbows on the arm of a chair can develop the syndrome, as can truckers and people who use wheelchairs who lean on their elbow, Evans said. Some people who sleep curled in a fetal position with their elbows overly bent can develop the syndrome. Another factor could be occupational. People who type in front of a computer, with their elbows bent tighter than 90 degrees, could damage their nerves.
Bending the elbow tighter than 90 degrees for an extended period of time will stretch the ulnar nerve by 8 to 15 percent, Evans said. The remedies are simple.
– Avoid activities that require the elbow to be bent tighter than 90 degrees.
Too much cell phone use can lead to overextending nerves, causing what doctors call “cell phone elbow.”
Orthopedic specialists are reporting cases of “cell phone elbow,” in which patients damage an essential nerve in their arm by bending their elbows too tightly for too long.
When cell phone users hold the phone to their ears, they stretch a nerve that extends underneath the funny bone and controls the smallest fingers. When talkers chat for a long time in that position, it “chokes the blood supply to the nerves. It makes the nerves short-circuit. The next thing you know, there’s tingling in the ring and small finger,” said Dr. Peter J. Evans, the director of the Hand and Upper Extremity Center at the Cleveland Clinic in Cleveland, Ohio.
When that happens, the advice is simple: Switch hands — before it gets worse.
