July 1, 2026

What Happens When a Covering Analyst Goes on Parental Leave?

Unsurprisingly, the subject of this blog is not something the average biotech CEO or CFO thinks about – but given the relative youth of equity research analysts, it is something that has happened to at least three of my clients over the past two years.

Consequently, it warrants discussion. Not in the hopes of avoiding having a covering analyst go on parental leave – an endeavor that would raise both legal questions and ethical concerns – but to understand how to plan for and operate, while the analyst is “out of office.”

Based on our experience, one of three things typically happens:

1. Coverage is formally suspended (to be resumed when the analyst returns to work).

• In our first real-world example, the analyst in question worked for a bulge bracket bank in NYC, whose employment policy included 20 weeks of parental leave.
• The analyst signaled the leave of absence ahead of time to companies on their coverage list.
• Coverage of the analyst’s ~23 biotechs (including price targets and recommendations) was formally suspended on 12/11/24.
• No research was published on suspended names during the analyst’s leave.
• Formerly covered clients were still invited to the bank’s annual global healthcare conference, however, which took place in June 2025 – including fireside chats and investor one-on-ones.
• Coverage was resumed on 15 suspended names on 7/10/25 (211 days or ~7 months later). One previously covered name had been subsequently taken over by Merck, another by J&J, while a third went bankrupt. At the time of writing, coverage was not resumed on 5 names.

2. Coverage is temporarily “maintained, but quiet.”

• In our second example, the analyst in question worked at an upper mid-tier bank in Chicago, IL.
• Again, the analyst signaled their leave of absence well ahead of time to covered companies.  
• The analyst was out on “parental leave” for no more than a couple of months.
• The bank kept the analyst’s ratings and price targets in place.
• The analyst’s junior team stayed in touch with covered companies.
• Biotechs were still invited to the bank’s annual healthcare conference held December 2025, where they presented and took part in investor one-on-ones.
• “Active coverage” resumed when the analyst returned to work after a few months of leave.

3. Coverage is maintained (the analyst essentially works remotely from home).

• In our third and last example, the analyst worked for an upper mid-tier bank in NYC.
• To be blunt, it was hard to tell that the analyst was even on parental leave. Instead, the analyst communicated to the biotechs they covered that they were starting a family and would be “less accessible” for a period of time, working from home. In practice, the analyst (backed by their team) kept publishing on the names they covered.
• By the time of the bank’s annual health care conference, they were “back in the office” full time, and all covered names were invited to attend, as per usual.

Practical tips for biotech management teams

• When made aware of the impending situation, make sure to inquire what kind of parental leave an analyst intends to take, what it entails, and how long it is expected to last.
• Do proactively engage with any interim/shadow coverage that the bank will be providing.
• Understand that conference invitation and participation are unlikely to be affected by an analyst’s absence.
• Do not lobby for special treatment – if your coverage was suspended it will likely be reinstated at the same time as every other biotech in the same situation.
• Do not panic about optics – parental leave and the (temporary) suspension of coverage as a result is a normal occurrence and doesn’t typically raise investors’ concern.
• If you’re worried about a temporary dip in coverage, you have a bigger problem of not having built a broader bench of analyst coverage. See our entry: “How Do You Build a Biotech’s Equity Research Coverage? (And Is There Such a Thing as Too Much Coverage?).”

When the analyst returns

When the analyst is back in the office, management has the opportunity to re-anchor its relationship with them. Set up a re-onboarding call. Walk through what changed while they were out – data, hires, financings, sentiment, etc. Analysts appreciate this far more than being expected to “catch up” via filings.

Handled well, this can actually strengthen coverage, since analysts returning from leave often re-engage with fresh perspective and renewed energy.