Instinet, an agency brokerage firm, announced its partnership with Favus Institutional Research, an independent research provider focused on the healthcare sector. As a member of Instinet’s research platform, Favus Institutional Research will receive sales and marketing services as well as co-branding and sector exclusivity.
As we have discussed here, Independent research providers can address many of their sales and distribution challenges by establishing partnerships with institutions such as investment banks, independent sales agents, research aggregators, or, like Favus, with agency brokers. An ideal distribution partner not only provides indies with sales force, marketing support, and client relationship management, but also with valuable compliance frameworks and payment alternatives (such as CCA/CSAs). A risk that indies might face in some of these partnerships is finding themselves locked in an agreement that is not driving enough business to compensate for their exclusivity pledge to the distribution partner.
Instinet and Favus seem to be mutually fit for their engagement. While Favus will receive distribution and sales support, plus area-of-coverage exclusivity, Instinet will benefit from the partnership by being able offer its clients high quality coverage in healthcare (a sector that was absent in their research platform), and by any trading this might originate. Also, the addition of Favus consolidates the Instinet Access Platform as one of the leading independent research platform available to buy-side clients.
The Instinet Access Platform currently includes 8 independent research partners in different industry sectors: Alternative Energy Investing, Decision Economics, Favus Institutional Research, HMCG, IDC Tech Investor, Public Insight, Ross Smith Energy Group, and Trusted Sources.
About Favus Institutional Research, LLC
Favus Institutional Research is an independent healthcare equity research provider. The firm provides institutional investors with valuable healthcare research and divergent information, helping clients better assess healthcare stocks by analyzing information that is not ordinarily available from other research providers. Favus uses fundamental analysis to evaluate the healthcare sector, with a focus on commercial, clinical, legal, reimbursement and regulatory catalysts. The firm is headed by Elliot Favus, M.D., who has equity research and institutional investment management experience at Lazard Capital Markets and Och-Ziff Capital Management Group.
Instinet is a wholly-owned subsidiary of Nomura Holdings, Inc. The firm operates two distinct business lines: a global network of agency-only brokers that helps institutions lower trading costs and improve investment performance through electronic trading products; and the Chi-X® Global businesses, which aim to improve the efficiency of capital markets globally by providing high-performance, low-cost alternative execution venues and the technology required to power them.