How Investors Use Expert Calls in Biotech Due Diligence
By Giuseppina Sannino, PhD
An expert call is a focused conversation with someone whose experience is relevant to a question you need to resolve. In biotech due diligence, that might concern a technology’s practical limitations, customer adoption, distribution channels or manufacturing partnerships.
The value comes from testing assumptions. A specialist can explain why a promising technical result may be difficult to translate into routine use, or why a commercially attractive market may be harder to enter than it appears.
An expert call should leave you with clearer assumptions, not just a stronger opinion.
What a conversation can add to the documents
A data room may contain detailed technical, commercial and financial evidence. An expert helps you interrogate that evidence and identify what remains uncertain.
For example, a company may demonstrate that its assay performs well under specified conditions. A laboratory specialist can help identify additional questions about workflow compatibility, verification requirements, staff training and the burden of switching from an established method.
That perspective does not prove whether the company will succeed. It helps determine what to investigate next.
The same distinction applies to market claims. Someone who has sold into a particular segment may explain purchasing practices, but their experience in one country or customer group should not automatically be generalised to the whole market.
Match the expert to the question
A senior title is less useful than direct, relevant experience.
| Question to investigate | Experience that may be useful |
|---|---|
| Will laboratories adopt this workflow? | Laboratory operations, applications or implementation |
| How does purchasing work in this segment? | Procurement, technical sales or distribution |
| How differentiated is the technology? | Relevant scientific or product-development experience |
| What could complicate outsourced production? | Manufacturing, quality or supplier management |
| What does a partner need before committing? | Relevant licensing, alliance or commercial experience |
Check the expert’s geography, product category, customer exposure and how recently they worked on the issue. Also establish what they cannot discuss because of confidentiality, employment duties or conflicts.
Prepare questions that test the investment thesis
Start with the decision, then work backwards.
Instead of asking whether a technology is “promising,” identify the assumption you need to examine. Is the claimed advantage important enough to justify switching? Who would approve the purchase? What evidence would a distributor need before taking on the product?
Useful questions include:
- What alternatives are customers already using?
- What would prevent adoption even if the technical performance is strong?
- Which part of this assessment comes from direct experience?
- Where might your experience not apply?
- What evidence would change your view?
Ask for examples that the expert is permitted to share. Separate observed practice, interpretation and prediction in your notes.
Combine perspectives and follow up
One expert’s experience can be valuable without being representative.
A distributor, laboratory manager and manufacturer may describe the same market differently because they encounter different constraints. Investigate the reasons for disagreement rather than simply counting how many experts support a conclusion.
After the calls, record which assumptions gained support, which were challenged and which remain unresolved. Check consequential factual claims against documents or other suitable evidence.
Expert interviews complement scientific, regulatory, legal and financial diligence. They do not replace it.
Set clear confidentiality and compliance boundaries
Before the call, agree the topic, permitted scope and any conflicts or employer restrictions. Participation does not authorise someone to speak for a current or former employer.
Do not request or disclose information that cannot lawfully be shared, including protected confidential information or material non-public information. An NDA between the participants does not remove duties owed to an employer or third party.
For relevant EU financial instruments, the Market Abuse Regulation defines inside information and addresses unlawful disclosure. US SEC examination staff have also identified weaknesses in investment advisers’ controls around expert-network consultations. [1, 2]
If a discussion appears to cross a boundary, stop that part of the conversation and follow the applicable compliance process. Agree any recording or transcription arrangements beforehand.
Frequently asked questions
How long is an expert call?
Agree the duration when booking. A narrowly defined question may fit into one session; several unrelated topics may need separate discussions or different experts. Prioritise the questions in advance.
Can companies book calls as well as investors?
Yes. Companies can use expert consultations to explore markets, customer requirements, distribution or partnership models. The same confidentiality and conflict checks apply.
Which fields can an expert cover?
The scope should follow the individual’s actual experience. Molecular diagnostics, IVD raw materials, distribution and OEM partnerships, for example, involve different questions and may require different specialists. Confirm the fit before commissioning the call.
Sources
- Regulation (EU) No 596/2014 on market abuse, particularly Articles 7, 10 and 14
- SEC Division of Examinations: Investment Adviser MNPI Compliance Issues, 26 April 2022
Keep reading
Published 6 October 2026. Giuseppina Sannino, PhD.