The pharmaceutical industry operates in an environment under constant regulation and scrutiny. This includes aspects from research and trials to product approvals and launches. While this has equipped pharmaceutical companies and their leaders to anticipate traditional risks, the digital age, fuelled by social media, has introduced challenges that traditional playbooks need to be more suited to address. The speed and reach of online communication have redefined the dynamics of crises, making resilience and digital intelligence indispensable tools for the industry.
A New Era of Crisis Management
The pandemic brought the pharmaceutical industry to the centre of public attention. Once operating behind the scenes, pharma brands became household names akin to direct-to-consumer brands. This shift necessitated a rethink in crisis management strategies.
A study of 100+ pharma communicators found that over 75% anticipate three or more crises annually, far exceeding other industries. The drivers? Misinformation and emerging risks. Nearly 65% cite misinformation as a primary concern, alongside unknown risks highlighting today’s unpredictability.
In this fast-evolving landscape, speed is crucial. Digital platforms amplify crises within minutes, leaving little time to assess and respond. Pharma experts stress the need for rapid action to address risks fuelled by online chatter.
The Stakes are Higher Than Ever
The consequences of delayed crisis response are severe. Reputational damage, negative publicity, and decreased employee morale are among the top concerns for pharma professionals. The fallout also extends to consumer trust and financial performance, making proactive measures critical.
Pharmaceutical companies are now advocating for resilience models over reactive approaches. These models leverage digital risk intelligence, enabling organisations to predict and pre-empt crises before they spiral out of control. For instance, most pharma communicators rank monitoring digital chatter as their top priority—recognising its potential to escalate incidents swiftly.
Proven Resilience and Innovation
The COVID-19 pandemic showcased the pharmaceutical industry’s resilience and innovation, transforming public perception. Historically, many were not aware of how the sector operated. However, the industry saw a boost in approval, notably after introducing vaccines and distribution of medicines.
We can attribute this shift as a result of the following:
- People Before Profits: Pharma brands earned trust and admiration by prioritising public health over financial gains.
- Under Promise and Overdeliver: The accelerated development of vaccines—once deemed impossible within six months—showcased the industry’s commitment and efficiency.
- Visibility and Narrative Control: Open communication and senior leadership visibility during the pandemic demonstrated accountability, helping to mitigate speculation and criticism.
This demonstrated intentionality and built goodwill. This, along with pharma companies sharing information directly with the public and bypassing traditional channels, helped foster openness. It indicates that organisations must embed purpose and values into their decision-making processes to avoid returning to reactive modes.
Navigating Local Challenges
In India, the sector has faced its own set of challenges. Most recently, this stemmed from concerns about drug quality. One example is the contamination of cough syrups exported to Africa. Furthermore, cases involving Indian companies in the generics and biotech businesses have drawn international attention, with allegations of substandard drugs causing fatalities.
As a response, the Government has strengthened regulatory oversight. This included cancelling the licenses of 18 companies and putting stringent quality checks for medical exports in place.
Consequently, companies are introducing measures to improve quality, investing in improved manufacturing processes, and focusing on global regulatory compliance to safeguard reputation and mitigate risks.
Turning Adversity into Opportunity
The sector’s experiences underscore the importance of resilience, transparency, and purpose-driven communication. By embracing digital intelligence and prioritising stakeholder trust, pharma brands can navigate crises and emerge stronger. Hence, the sector offers a blueprint for other industries to align corporate actions with broader societal needs.
The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.
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