Biopharma's Reputation Problem

The pharmaceutical industry is on a streak. Unfortunately, it's not an enviable one.?

For several years, pharma has been the most poorly regarded industry in Americans' eyes, ranking last on a list of 25 sectors that Gallup tests annually in national?polling. In 2023, Americans are more than three times as likely to rate the pharmaceutical industry negatively (60 percent) as positively (18 percent), giving it a net-positive score of -42.

For a frame of reference, the federal government has a more favorable rating than biopharma. Let that sink in.

However, you might ask, so what? Who cares what the average American thinks about the industry?

Well, you might care if you are recruiting "average Americans" for a clinical trial, to invest when you take your company public or are seeking top talent that might decide to take their skills elsewhere. Or if you expect your industry to be dragged in front of Congress for hearings on drug pricing during an election year. (Spoiler alert: you can expect this in a few months.)

Growing a positive corporate reputation is crucial for biopharma. It should be an obvious priority, given that a commitment to patient well-being is why the industry exists. These profoundly moving and positive human stories are the north star AND hold the secret to saving the industry's image problem.

To this end, there are a few strategies for biopharma companies to enhance their reputation:

1. Develop comprehensive communication strategies that include positive storytelling, highlighting the company's values and mission, and demonstrating their commitment to improving public health.
2. Engage with patient advocacy groups and incorporate patient feedback into decision-making.
3. Communicating transparently and frequently, even on sensitive or challenging issues, with the media, patients, healthcare professionals, and the public.
4. Invest in Corporate Social Responsibility (CSR) initiatives, such as philanthropic contributions, environmental sustainability, and community involvement, that align with the organization's core values and mission and build personal connections with stakeholders.
5. Give voice to the organization through thought leadership (most often via the CEO) to establish the company's brand and reputation by sharing positive perspectives and modeling integrity and ethical behavior in the public eye,?whether?through journalism, conferences, or social?media.

Building a positive corporate reputation takes time, consistency, and a commitment to ethical and responsible practices. But it will open doors for the?organization and can function as a "social credit" to fall back on when crises?or challenges emerge.?

Good reputations are built on character, communication, and consistency but are fragile things. As Warren Buffett said, "It takes twenty years to build a reputation and five minutes to ruin it."