06.03.14
Last month, APCO Worldwide released findings of its fourth State of the U.S. Biopharmaceutical Industry report. The study, conducted by APCO’s research consultancy, APCO Insight, uses a “Return on Reputation” metric to assess an industry’s reputation, taking into account 54 attributes considered important by stakeholders, including sustainable innovation and pharmacovigilance.
The ROR Indicator model was designd to help the industry and its companies see, quantitatively, how a change in reputation can impact a number of business outcomes such as consumer behavior, prescribing behavior, community activism, government policy, the litigation environment and financial return.
Among the key findings from the report is that a one-point increase in biopharma’s reputation index translates into business outcomes such as the following:
Politicians in the U.S. and around the world continue to speak out against high biopharmaceutical pricing. This was clearly seen in the March 20 letter sent to Gilead’s CEO, John C. Martin, by U.S. Representatives Henry Waxman, Frank Pallone, and Deanna Degette.
“Our concern is that a treatment will not cure patients if they cannot afford it...Reports indicate that Gilead intends to sell Sovaldi at a cost of $84,000 per treatment. These costs are likely to be too high,” part of the letter read.
In April, a report issued by PhRMA also suggested the need for more policymaker support of biopharma science and pricing. It advanced the need for a more “science based” approach to policy, to prevent job loss and U.S. biopharma industry shrinkage (Contract Pharma, May, 2014, p. 32).
ROR down only slightly
Overall, the biopharmaceutical industry’s ROR index score fell from 61.3 in 2012 to 60.5 in 2013, according to APCO. Among policy leaders in the U.S., the index dropped from 58.6 to 55.3 (on a scale of 100) from 2012 to 2013.
“The biopharmaceutical industry in the United States continues to have a positive reputation among key stakeholders, and there are opportunities for the industry to build upon their role as leaders on critical health care issues by going beyond stakeholders’ expectations,” said Chrystine Zacherau, senior director of health care research at APCO Insight. “In particular, stakeholders express a desire to see the industry play a larger role in working to address pressing, long-term public health issues and exceed expectations in the areas of sustainable innovation and disease awareness.”
Chronic disease management, research transparency and advocacy are some of the key areas where stakeholders would like to see the industry do more to demonstrate its commitment as a leader in addressing critical public health concerns, APCO said.
“This has been a pivotal time for the biopharmaceutical industry and greater health care industry in the United States,” said Stig Albinus, global leader of APCO’s health care practice. “The biopharmaceutical industry has stepped up to meet stakeholders’ expectations over the past two years by being responsive to their concerns and working responsibly to improve health care.”
“With the ROR Indicator,” Albinus added, “We can show senior communication and business leaders in the industry how they can continue to meet and exceed these expectations by better communicating about their innovative products and solutions to address some of society’s long-term public health problems.”
The ROR Indicator model was designd to help the industry and its companies see, quantitatively, how a change in reputation can impact a number of business outcomes such as consumer behavior, prescribing behavior, community activism, government policy, the litigation environment and financial return.
Among the key findings from the report is that a one-point increase in biopharma’s reputation index translates into business outcomes such as the following:
- A 0.13% increase in market capitalization, roughly more than a U.S. $150 million for the average biopharmaceutical firm.
- A 1.1% increase in sales for the average biopharmaceutical company.
- An increase of more than 550,000 patients who are likely to ask their doctor about a company’s medicine.
- An increase of more than 975,000 people who are likely to support and defend the industry in the event of a crisis.
- A 0.5% increase in the number of Policy Leaders who support the most important policy issues facing the industry.
Politicians in the U.S. and around the world continue to speak out against high biopharmaceutical pricing. This was clearly seen in the March 20 letter sent to Gilead’s CEO, John C. Martin, by U.S. Representatives Henry Waxman, Frank Pallone, and Deanna Degette.
“Our concern is that a treatment will not cure patients if they cannot afford it...Reports indicate that Gilead intends to sell Sovaldi at a cost of $84,000 per treatment. These costs are likely to be too high,” part of the letter read.
In April, a report issued by PhRMA also suggested the need for more policymaker support of biopharma science and pricing. It advanced the need for a more “science based” approach to policy, to prevent job loss and U.S. biopharma industry shrinkage (Contract Pharma, May, 2014, p. 32).
ROR down only slightly
Overall, the biopharmaceutical industry’s ROR index score fell from 61.3 in 2012 to 60.5 in 2013, according to APCO. Among policy leaders in the U.S., the index dropped from 58.6 to 55.3 (on a scale of 100) from 2012 to 2013.
“The biopharmaceutical industry in the United States continues to have a positive reputation among key stakeholders, and there are opportunities for the industry to build upon their role as leaders on critical health care issues by going beyond stakeholders’ expectations,” said Chrystine Zacherau, senior director of health care research at APCO Insight. “In particular, stakeholders express a desire to see the industry play a larger role in working to address pressing, long-term public health issues and exceed expectations in the areas of sustainable innovation and disease awareness.”
Chronic disease management, research transparency and advocacy are some of the key areas where stakeholders would like to see the industry do more to demonstrate its commitment as a leader in addressing critical public health concerns, APCO said.
“This has been a pivotal time for the biopharmaceutical industry and greater health care industry in the United States,” said Stig Albinus, global leader of APCO’s health care practice. “The biopharmaceutical industry has stepped up to meet stakeholders’ expectations over the past two years by being responsive to their concerns and working responsibly to improve health care.”
“With the ROR Indicator,” Albinus added, “We can show senior communication and business leaders in the industry how they can continue to meet and exceed these expectations by better communicating about their innovative products and solutions to address some of society’s long-term public health problems.”