Executive Briefings

Pharmaceutical Industry Exemplifies How Company Reputations Can Suffer

It's deja vu for the pharma industry. Mylan's EpiPen pricing controversy - kicked into high gear with mainstream media coverage of widespread outrage - has revived public and political fury against drug companies.

The public's disdain is at a high in part thanks to a gaping lack of perception on the part of Mylan CEO Heather Bresch, who recently told CNBC about the company's steady price increases that "no one's more frustrated than me." But that disdain also extends to the broader industry.

Drug pricing has fueled the burn of the entire industry's reputation over the past year or so. From price hikes on old drugs by Turing Pharmaceuticals and Valeant, to pricey new tags on revolutionary treatments a la Gilead, all of pharma is lumped time and time again into a monolithic industry of detached greed.

"The public's hatred of this industry is an incredible thing. They create life-saving drugs, but, because of their greed, people can't afford them. What good is a life-saving drug if you can't get it?" wrote a Los Angeles Times columnist recently, quoting an AIDS healthcare advocate.

The Reputation Institute reports that the global pharma industry reputation has languished since 2014. Its rating is currently 67.5, with anything over 70 being strong and anything over 80 being excellent, said Stephen Hahn-Griffiths, vice president and managing director for the Reputation Institute in U.S. and Canada.

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The public's disdain is at a high in part thanks to a gaping lack of perception on the part of Mylan CEO Heather Bresch, who recently told CNBC about the company's steady price increases that "no one's more frustrated than me." But that disdain also extends to the broader industry.

Drug pricing has fueled the burn of the entire industry's reputation over the past year or so. From price hikes on old drugs by Turing Pharmaceuticals and Valeant, to pricey new tags on revolutionary treatments a la Gilead, all of pharma is lumped time and time again into a monolithic industry of detached greed.

"The public's hatred of this industry is an incredible thing. They create life-saving drugs, but, because of their greed, people can't afford them. What good is a life-saving drug if you can't get it?" wrote a Los Angeles Times columnist recently, quoting an AIDS healthcare advocate.

The Reputation Institute reports that the global pharma industry reputation has languished since 2014. Its rating is currently 67.5, with anything over 70 being strong and anything over 80 being excellent, said Stephen Hahn-Griffiths, vice president and managing director for the Reputation Institute in U.S. and Canada.

Read Full Article