One scandal after another has landed the Pharma industry in hot water. With the recent outburst on their outrageous pricing tactics, there has been a lot of good faith lost. With calls for reform being the loudest, the future for pharma looks bleak, particularly since no one seems to be paying attention to the fact that for things to get better, they will get worse first. If you’re curious about this fact, take a look at these reasons why:
De-Constructing a Tarnished Image
The pharma industry has built a pretty formidable reputation in the mind of the general public. This has led to business profits declining by almost 90%. The pharma industry has to actively re-build this loss of trust. However, this is going to prove challenging since many consumers base their interactions on their past experiences. Based on data, this past experience makes for a total of two-thirds of the person’s buying decision. Few people will be willing to give a second chance and more will be wary of the new image.
Improving their Marketing Strategies
Marketing strategies of the pharma industry rely more on meeting their sales target. For this reason, pharma industry representatives have not shied away from using any means to influence the doctors and pharmaceutical directors. Often times, these marketing strategies have proven to be detrimental for the health of the patients but most pharmaceutical companies have even gone so far as to pay physicians to hide the side effects and highlight the benefits. Changing this aspect will require building a lot of trust with the patient and various physicians who have felt alienated when they refused to go along with the pharma marketing tactics.
Re-modeling Their Business Approach
The pharma industry used to be looked upon as a lucrative market for multi-national business corporations and stakeholders alike. However, the steady decline in reputation has also cost increasing pressure as stocks lose more value. To ensure that their quarterly results stay above the red line, more businesses are working on a return on investment basis. The needs and wants of the patients have become secondary which has lead to unethical practices. This business approach is negligent and outdated but for a new one to be incorporated, a major upheaval will have to take place which will bring chaos.
Major Changes from Top to Bottom
The focus on profit has been extremely damaging for the pharma industry and the recent outcry against pharma’s pricing practices has asked for a major upheaval. Currently, it is extremely likely that big changes have to be made from the top to the bottom. For big pharma, the way they choose to handle the situation is going to be the main deciding factor.
Like a phoenix, the pharma industry will have to reinvent itself. It can rise again from the ashes but it will have to go through the fire first. The main question lies not only in how but in when this transformation will take place.
