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A liitlebit of substance goes further than image?
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Amid the many challenges confronting the pharmaceutical industry is a need to polish its reputation, but a new survey says the world’s largest drug makers have failed to make any progress in recent years.
For the third consecutive year, the industry has garnered an average rating based on seven attributes – innovation; performance; leadership; citizenship; governance; workplace and products and services. And interestingly, all of the major companies are, overall, perceived rather similarly.
“On one level, many pharmaceutical companies find this is a good situation, because their internal perception is that everyone hates them and is out to get them,” says Kasper Ulf Nielsen, executive partner at The Reputation Institute, a consulting firm.
“But it also indicates the industry is stuck at an average level of trust, reputation and respect, because [the rating] has not been able to move over the past three years. And the challenge they have is not being able to build a perception they are outstanding in any of these” attributes.
The highest ranking went to Bayer, although Nielsen points out that less than five points separates the German drug maker from Novartis NOVN.VX -0.32%, which ranked last among the dozen large drug makers that were included in the survey. Bayer did not respond to a request for comment and a Novartis spokeswoman says the drug maker is not familiar with the survey methodology and so would not comment. [UPDATE: A Bayer spokesman says “Bayer is a trusted brand, and our reputation is very important to us.”]
The survey, which was conducted earlier this year, queried more than 15,800 people in 15 countries that represented a mix of the largest economies and emerging markets, including the U.S., the U.K., Germany, Russia, France, Italy, Canada, Australia, Brazil, China and India (this link requires you to register before accessing the results).
Overall, the drug makers fared best when consumers were asked about the quality of products and services and financial performance, but the overall showing was weakest when it comes to being a good corporate citizen and a responsible company that behaves ethically and is transparent in its dealings.
“There have been scandals” over safety and releasing clinical trial data, Nielsen says, which makes people believe the companies “are not open and ethical in the way they do business.” And the industry effort to portray itself as a good citizen and doing the right things for patients is “seen as self-serving.”
The results also reflect the impressions consumers have about the value of medicines compared with price tags, as well as the extent to which drug makers are bringing innovative medicines to market and not simply maneuvering to protect patents.
“They’re not really telling a story behind the drugs,” says Nielsen. “It’s only recently that some companies have even tried to tell that story. So as a result, they have not been able to build a profile with the general public about who they are and why I should trust them.”
There is one development with the potential to bolster reputations. The latest crop of cancer treatments have received substantial publicity about their ability to successfully combat tumors and Nielsen suggests these drugs could move the reputation needle into positive territory, at least for some companies.
We should note Johnson & Johnson was not included in the survey because, Nielsen explains, consumers identify the health care giant as more than a marketer of prescription drugs. And the survey continued to use the Abbott Laboratories name, even though the pharmaceutical business was spun off into AbbVie more than two years ago.
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