Pharmaceutical branding shapes a company's identity, positioning, and perception in the market, while reassuring audiences of product safety, thereby improving adoption.
However, whereas traditional branding and promotional efforts were once enough to appease stakeholders, thought leadership is becoming increasingly important.
It can be a vital asset in navigating various crises the industry faces, such as its trust problem, talent shortage, cybersecurity vulnerability, and more.
This article highlights these challenges, exploring how thought leadership can help mitigate them.
For many years, the pharmaceutical industry operated behind closed doors, which the public, by-and-largely, didn’t seem to mind.
The industry was considered safe and there was a general acknowledgement that companies face many competing priorities, such as strict regulatory frameworks and the need to protect their IP.
However, as investigative journalism has grown, audiences have become far more interested in the true motivations of pharma giants and the long-term impact of their products.
This shift in perception hasn't happened overnight but because of several events that have contributed to public scrutiny.
In the early 2000s, pharma companies in the US were revealed to be the biggest spenders on lobbying, more than any other sector.
From the 2010s onward, numerous documentaries were made about companies prioritising profits over patient safety amid other alarming controversies.
This decade, widespread social media use has given rise to misinformation, further fuelling skepticism.
As a result, a recent survey revealed that just 1 in 3 adults now trust the pharma industry.
As an industry executive, this will rightly sound alarm bells.
A lack of trust might prevent the production of a life-saving drug or discourage researchers from joining your project altogether.
However, that's only if you lack transparency.
If you step into the spotlight, demystify the manufacturing process, and eradicate defamatory rumours through thought leadership, you have a huge opportunity to show stakeholders that safety is your priority.
In doing so, you'll stand apart from your competition and generate a healthy following that snowballs with time as audiences seek you out whenever they need insight or advice.
That said, you must remember to address things that your company and industry can also do better.
Transparency isn't only about celebrating your successes but showing that you're honest enough to highlight where improvements can be made. You'll be better received for it.
Recent reports have unveiled that there are more than 30 pathogens that could cause a future pandemic, sparking anxieties among the general public, particularly as viruses like bird flu continue to spread.
As such, the pharmaceutical sector is bound to face growing pressures in the coming years as world leaders and health bodies push to produce preventive vaccines and drugs.
As an industry leader, if you haven't acknowledged these threats across any of your channels, now is the time to do so.
Any expert insight into how viruses are evolving can help guide informed decisions and demonstrate a competency and readiness to respond.
As COVID-19 showed, in a global health crisis, proactive communication determines whether you're seen as part of the solution or part of the problem.
So, there's no room for complacency.
For the pharma industry to drive impact, it needs talent.
However, right now, there's a significant skills shortage.
Over one-third of pharmaceutical manufacturing employees in the US are over 50.
80% of pharmaceutical manufacturing facilities are experiencing a skills mismatch.
More than a third of drug developers warn that talent shortages limit progress.
Reports indicate that the industry will face a 35% talent deficit by 2030.
If you're a researcher, scientist, clinical trial professional, or manufacturer, encouraging aspirational workers to pursue industry careers must be a priority.
You can highlight the unmatched opportunity to drive real-world change and innovation in the coming years while nodding to the industry's extensive growth pathways.
Even if you're unable to directly influence talent, you can advocate for government support through better curriculum alignment, more STEM scholarships and grants, fast-tracked work visas, and public-private partnerships.
Any action you're seen to take can make a huge difference, such as immediately improving retention.
Revolutionary technologies, such as those that use gene editing to eliminate pathogenic resistance, will transform patient care in the coming years by shifting the focus from treatment to risk prevention entirely.
However, many promising revelations are still hindered as they near commercialisation.
Complying with regulatory standards is lengthy and costly.
Extensive clinical trials are time-consuming.
Transitioning from a lab-scale product to a large-scale production must make financial sense.
A competitive market makes it tough to stand out and attract partners.
A failure to protect IP can undo any hard work.
This is why just 20% of UK MedTech companies turn a consistent profit, while 2023 was a record-breaking year for biotech bankruptcies.
That said, these challenges are not insurmountable.
With the right leadership, companies can secure long-term investment and the regulatory support needed to develop solid, market-ready products.
For instance, Pfizer's CEO, Dr. Albert Bourla, played a pivotal role in the development of its COVID-19 vaccine through media engagement and industry events.
Meanwhile, Novo Nordisk's CEO, Lars Fruergaard Jørgensen, has driven the development of numerous successful medications for diabetes, obesity, and hemophilia through strategic campaigns.
Of course, the best revelations are often backed by investors regardless of external challenges. But for the majority of pharma companies, thought leadership is crucial.
According to a recent IBM report, data breaches within healthcare and pharmaceuticals cost the highest of any sector, averaging $4.82mn per breach.
When this happens, online and in-person unrest can escalate quickly, while the media amplifies any risks to stakeholders.
In essence, cyber attacks pose a reputational nightmare.
Even worse, given the number of partners and suppliers pharma firms work with, tracing and resolving breaches can be extremely challenging. In fact, just 44% of healthcare and pharma organisations in the UK have systems in place to detect cyber incidents involving their partners.
For such a systemic issue, adopting a security-first mindset is as crucial as developing life-saving products. Until leaders prioritise this, neither will their workforce, and vulnerabilities across the sector will persist.
While the pharmaceutical sector is the most regulated in the world, even it wasn’t prepared for President Trump’s newly announced 25% tariffs.
Understandably, stakeholders will have many questions.
How will the tariffs hinder R&D?
Will other countries impose retaliatory tariffs?
What will this mean for consumers?
If leaders don’t address these uncertainties promptly, the upcoming tariffs could significantly impact countries like India and China, which supply more than 70 percent of the active pharmaceutical ingredients used in US drug manufacturing.
Conversely, US manufacturers could face their own disruptions if these exporters reduce or limit their shipments.
As such, investors may withdraw capital, employees may resist contractual changes, and consumers and partners may turn to alternative brands.
Even worse, critical drug production, such as for cancer treatments, could be halted, raising significant concerns among those receiving care.
While unprecedented events like this are impossible to fully predict, open communication and proactive strategies are crucial to provide clarity and direction.
A lack of action may even reduce confidence in your leadership. So, it's something to be aware of.
According to recent reports, the EU's private R&D spending spiked by 9.8% last year, outstripping growth in the US and, for the first time in a decade, China.
That said, Europe still lags behind the two pharma giants, prompting worries about its competitiveness.
While it's partly up to European governments to incentivise support for pharma firms, such as by fast-tracking regulatory conditions and potentially introducing tax incentives, leaders must drum up support themselves.
Besides, failing to accelerate domestic production could result in an unsustainable dependency on imports, with Asia currently supplying 60-80% of European products and equipment.
Terminally ill patients could be in jeopardy, especially with global health crises, geopolitical tensions, and world disasters likely to exacerbate shortages in the coming years.
While solving this complex challenge will take time, raising awareness is a crucial first step.
If it isn't already, improving your supply chain must become a top priority.
20% of temp-sensitive products are damaged during transport.
Quality issues are responsible for around 62% of drug shortages.
10.5% of medicines in middle to low-income countries pose counterfeit risks.
£300 million is wasted every year on unused or partially used medication.
This is without the added impact of global health crises, geopolitical tensions, and world disasters.
It’s clear that more visibility is needed throughout the entire supply chain, from production to distribution to the point of sale.
One solution might be greater blockchain and AI investment for more vigorous tracing.
Another could be more diversified global suppliers to better minimise risk.
Alternatively, workers throughout the supply chain could be encouraged to undergo more vigorous, universal training to improve competencies.
By focusing on these areas, the pharma sector will benefit from a more ethical, efficient, and unified ecosystem that ultimately ensures better patient outcomes.
Meanwhile, your company won't suffer from waste, shortages, and lost revenues.
50 years ago, the term biohacking only existed in fiction. Today, it is taking the globe by storm.
It’s prominent in modern society and mass media, where it is often showcased in extremes. For the most innovative pharma firms, it also promises huge revenues.
But, like all new advancements, the market is far from mature.
Investors remain cautious about biohacking’s long-term viability, preferring to focus on investments that promise immediate returns in the next few years, such as AI.
Potential patients, while intrigued, are hesitant to invest in something that may pose risks to their health.
Regulators and governing bodies need to consider any potential defects.
That said, the benefits are undeniable if proven safe.
People could reduce the effects of aging, improve resistance to dangerous diseases, and ultimately live longer.
But as research is still in its infancy, it's crucial to keep audiences informed and build confidence before any products hit the market. Conversely, it's equally important to warn about any unidentified risks.
In doing so, you'll position your brand as a forward thinker while, most importantly, earning stakeholder trust and paving the way for meaningful impact.