Cure
Overview
Nolan Townsend, CEO of Lexeo Therapeutics, shares candid lessons on how IPOs reshape investor relationships, disclosure strategy, and the day-to-day responsibilities of leading a public biotech company.
For biotech founders preparing to enter the public markets, the shift goes well beyond raising capital. The role itself starts to look different, as conversations with investors take on a new tone and clinical timelines carry added weight. Even internal decisions are made with a broader audience in mind, knowing that shareholders and analysts are watching closely.
In a recent Concept to Cure video lesson, Nolan Townsend, CEO of Lexeo Therapeutics, walks through what management teams often underestimate when moving from private to public biotech. His practical perspective helps highlight the changes in how founders communicate, how they disclose information, and how they think about the pipeline.
View the entire lesson of our Concept to Cure course: From Startup to IPO: Lessons from the Lexeo Journey. All lessons available exclusively to Cure members.
You Are No Longer on the Same Side of the Table
In the private markets, investors and founders often feel like long-term partners. Information can be shared in detail and conversations about clinical data are direct and nuanced. Because capital is locked up, investors are usually focused on helping the company succeed over time.
But public markets introduce a different rhythm, says Townsend.
You cannot share everything. Disclosure rules set boundaries. At the same time, shareholders can exit quickly. That liquidity changes behavior. Instead of a small group of aligned backers, you are speaking to a broad set of investors who can buy or sell with little friction.
That is why investor relations becomes a core function. Management teams spend significant time explaining the story, reinforcing strategy, and maintaining engagement. A stronger share price lowers the cost of capital. And a lower cost of capital gives you more options to advance the pipeline.
The preparation for that reality should start before the IPO process begins.
Disclosure Rules Redefine How You Operate
Once public, you are in a fishbowl. Hiring decisions, clinical data, and strategic moves may require public disclosure if deemed material. The challenge is that materiality is not always black and white. Legal frameworks exist, but judgment plays a role. And Wall Street may interpret materiality differently than management does. Many companies have lost credibility by misjudging that threshold.
Townsend emphasizes the importance of working closely with legal advisers and understanding investor expectations. You also need to carefully sequence data releases. Sitting on material information for too long creates operational and legal risk. It also complicates internal communication, since access must be tightly restricted.
Planning disclosure strategy should be part of clinical planning itself, not an afterthought.
Concept to Cure Video Series
We are proud to introduce Concept to Cure, our 12-part video series built for healthcare founders and operators turning breakthrough ideas into real-world impact.
Across these expert-led lessons, biotech CEOs, venture investors, and policy leaders share the frameworks and hard-won lessons that move innovations from early concept to clinic and beyond.
From validating your market and building investor-ready business models to navigating FDA approvals, scaling commercialization, and leading high-performing teams, each episode distills the practical insights entrepreneurs need most.
Concept to Cure lessons are available exclusively to Cure members.
