Negative news associated with the Pharma industry has become so prevalent that it seems that few companies are doing anything to curb the negativity. In fact, it appears like most pharma companies are in competition to see which business is the most villainous out of them all. On the other hand, in an industry where every company seems to be coming under fire, Sanofi stands out as a shining example for practices that other pharma companies should also be incorporating.
The following are a few more reasons why more pharma companies should follow Sanofi’s example:
Lower Net Prices and Transparency Reports
The prices enforced by pharma companies for various drugs have always brought them under fire. Couple this factor with no disclosure of their records and pharma companies effectively created a feeling of uneasiness among their consumers.
While promises were made for transparency that showcased how the pricing hikes are made, pharma companies would keep delaying doing this. In fact, this very same aspect caused a lot of criticism. Stepping apart from the mold, Sanofi finally decided to make good on all the empty promises and released a transparency report of their figures that showcased their pricing and a decrease in their net profits by 8.4%
Constantly Updating
Sanofi also pledged to adopt better standards. They have also promised to limit their price hike practices, sticking to the growth rate dictated by the NHE – National Health Expenditure. This rate is established every year by the Centers for Medicaid and Medicare. In line with this, Sanofi will implement new policies each year, by April 1 to reflect the changes as dictated by these institutions. In the event that their drug prices should be above the NHE standard, Sanofi has also promised to provide a proper rationale behind their decision to do so.
Providing Rationale
In fact, Sanofi’s method of providing a rationale for their drug prices is a healthy practice that self-corrects any immoral practice. Some drugs are necessary to be priced more because of the research and development as well as other procedures that went into the making of the drug. Based on if the rationale is correct or not, the pricing can then stay unchallenged. While other companies have not opted for this method, it is still hoped that they will start to do so.
Change is Coming
Luckily, Sanofi’s changes have brought about a change for the good. They have also worked in a positive by manner by increasing the pressure on other pharma companies to step up and create a good example. In fact, other companies have started making pledges as well. Companies such as AbbVie and Allergan have also decided to actively limit their price hikes, ensuring that their prices stay within single digits.
Similarly, other companies have also opted for healthier practices by offering transparency reports. Johnson & Johnson released their figures as well as Merck and Eli Lilly. Considering that these are big pharma businesses, it is hoped that others will soon adopt the transparency that Sanofi is offering.
