By Peter Stendal, Associated Partner, Structured, Copenhagen

The pharmaceutical industry is widely acknowledged for its innovative power to develop new and life changing treatments to debilitating diseases of all kinds. None the less, the industry suffers from a challenged reputation among the general public, as confirmed in a new global reputation survey. Public reputation matters and the industry can raise its game by showcasing better its social contributions.  

If you ask +30,000 people across 13 markets to what extent they like and trust the largest companies in the pharma sector, they will give somewhat lukewarm replies. Translated into numerics, the average reputation score adds up to 65 out of 100 points, which lands the industry at the bottom end of 16 industries. The pharma industry holds a reputation equal to telecoms and better only than the energy sector, according to Caliber’s Global Reputation Report 2024 on pharmaceuticals. The industry reputation even declined two points over the previous year. 

Reputation levels tend to fluctuate and after experiencing a general increase during the COVID-19 pandemic, where the industry was able to really showcase the contribution to society at large in a very tangible way, the pharma industry is apparently back among the industries which struggle with structurally challenged reputation.  

Public Reputation Matters 

An objection often heard, is that the reputation among regular people is of limited importance as pharma companies are mainly B2B and sell to governments and insurance companies. It’s a valid point but it also misses the bigger picture. Citizens do influence prescription decisions, and access to medicines in various ways and at different levels. During the COVID-19 pandemic a lot of consumers decided not to opt for vaccination or opt for certain brands based on research. Citizen sentiments do impact health politics, and which treatments will be funded across longer time spans. Patient advocacy groups work very focused on gaining access to new treatments. And patients become more and more informed and influence prescription decisions in their dialogue with doctors. 

Moreover, the group of general citizens also includes potential future employees who decide based on trust whether they want to work for a company or not. Many private citizens are investors in these companies. The point is that average Jane and Joe on the street today is informed, involved and ready to exert their influence. This is why their perception of and trust in B2B companies matter. 

Profits Are a Key Factor 

And Jane & Joe are not all that fond of the pharma companies. As said, they recognise the innovativeness but overall, they trust and like these companies to the same degree as energy and telecom corporations which are associated with climate crisis, data leaks and poor customer service. What are the main drivers behind the poor reputation of the pharma industry then? The survey does not seem to capture this explicitly, but it does test one main objection, namely that the companies profit too much from treating illnesses paid with public money, in this case related to the hot topic of obesity treatments.

The survey shows that only 12 % of the global respondents believe that the companies are “taking advantage of a global crisis”, while 22 % believe that they are helping to solve a health crisis. 59 % believe that it’s a combination of both. These numbers confirm that profits are a key reputational factor, but they also show that perceptions and positions are nuanced with the largest proportion of people sitting on the fence, seeing both sides at the same time.
 

Trust Is Connected to Familiarity 

In my view, a large part of the solution to building a better reputation for the industry is tied to the concept of familiarity. The general public is not familiar with the companies behind the products. The Caliber analysis confirms this. Out of 34 companies surveyed, only eight companies showed familiarity scores above the standard 15% threshold, meaning that the other 26 companies can hardly be considered as generally known among the general public.  

Some of the companies not well known to the general public include household names like: Novo Nordisk (14% global familiarity), BioNTech (12%), Sanofi (10%), Eli Lilly (9%), Takeda Pharma (8%), Merck & Co, Merck KGaA and Boehringer Ingelheim (all 7%).  

In reputation management, lack of knowledge and understanding among respondents is often connected to unfavourably assessments, while an increased awareness level in respondents correlates to more positive verdicts. 


Showcase the Social Contributions Better 

If the industry reputation increased during the COVID-19 pandemic because the social contributions suddenly became very clear, this may also offer a hint as to how the industry can move up in the industry reputation rankings. Pharma companies should strive to showcase how they contribute to better health, improved quality of life, more resilient communities, while acting as responsible corporate citizens. 

They do this already for sure. But the numbers indicate that the industry as a whole is not successful at reaching the general public and shaping more accurate perceptions. One reason may be the investment level. The industry invests heavily in building product brands in the minds of healthcare professionals, and significantly less so in building better corporate brands and reputations in the minds of the public. Another reason may be tight regulations and a history of flying under the radar, which hampers creativity and volume of communications. 


Aligning Perceptions to Reality 

The best companies already invest solidly in showcasing social contributions and run amazing partnerships within sports, health, and access to medicines, among others. Yet, to raise the reputation of the entire industry, the companies need to do better. They need more relevant partnerships, more creative and innovative social contributions, and better communication. That way the pharma industry reputation can start to align with its real value add to society and its reputation potential. 

 

About the Author: Peter Stendal is an Associated Partner in the strategy consultancy Structured in Copenhagen and an ex-Boehringer Ingelheim Communications professional. He advises pharma companies on reputation management, public relations & public affairs. 

LinkedIn: https://www.linkedin.com/in/petergadestendal/ 

 

Link to survey: Top Pharmaceutical Companies — by reputation 2024 (groupcaliber.com)