J&J Lowers Its Reputation Expectations

J&J Lowers Its Reputation Expectations

I recently received this simple tweet from @JNJComm (Johnson and Johnson's official corporate Twitter account):

#JNJ is pleased to rank 12th among @FortuneMagazine’s most admired companies! > cnnmon.ie/xM27z8

Hmmm... JNJ might be pleased that #12 is better than #17, which is where the company stood in last year's most "admired" list of companies.

However, when you look at JNJ's standing within the pharmaceutical industry, you see a different, ie, downward, trend as shown in the chart on the left (click on it for a larger view). A similar trend is seen in the Harris QR data.

So, I don't think JNJ should lower its expectations and be "pleased" with how it is performing against its competitors who are certain to leverage this loss of reputation to their advantage.

Is Pharma Part of Problem or Solution to Current State of US Economy?

Is Pharma Part of Problem or Solution to Current State of US Economy?

When Americans were asked "Thinking about the role each of the following sectors played in the current state of the American economy, do you think each of the following sectors is a part of the problem, a part of the solution, or are you unsure?," only 15% said the pharmaceutical industry was part of the solution, according to the 2012 Harris Poll Annual RQ survey. 50% said the industry was part of the problem (see chart below):

According to Harris, that puts the drug industry on the cusp of being a "malefactor" - an industry that Americans blames for economic woes. You can find the complete Harris report here.

Meanwhile, PhRMA, the industry's trade association in the U.S., continues to churn out press releases that warns Americans that if the government passes such-and-such law or over-regulates such-and-such activity of the pharmaceutical industry, it will result in the loss of thousands, nay millions!, of American jobs.

For example, in a response to the President's Fiscal Year 2013 Budget, PhRMA stated "America's biopharmaceutical industry is a key driver of economic growth; the President's proposed budget would weaken our ability to innovate and create jobs. This is not an investment in America's future and these proposals should not be considered" (see "PhRMA Statement on the President's Fiscal Year 2013 Budget").

Of course, the drug industry can be both part of the solution and part of the problem. It depends on whose problem/solution you are talking about.

It's part of the solution for white collar workers who work in the U.S. pharma industry, have Rx medical coverage, and can afford prescription drug co-pays. Blue-collar workers and retired folk who depend more on government "safety nets," however, may see  high drug prices and the drug industry's antipathy toward Medicare rebates as part of the problem. The latter are not among the typical U.S. pharma work force since the drug industry is shipping more and more blue-collar manufacturing jobs overseas to countries like China.

Not only does this NOT support jobs in the U.S., it also endangers our drug supply.

In a story about counterfeit Avastin in the U.S., the link between overseas drug manufacturing and counterfeit or tainted drugs in the U.S. was suggested: "Most Americans don't question the integrity of the drugs they rely on. They view drug counterfeiting, if they are aware of it at all, as a problem for developing countries. But the latest incident, which follows the appearance of other fake drugs in the U.S.—including counterfeits of the weight-loss treatment Alli and the influenza treatment Tamiflu—suggests it is a growing risk, especially as more medicines and drug ingredients sold in the U.S. are made overseas [my emphasis; see "Roche warns of fake cancer drug in US"). For more on this, see "Unsafe Drugs: Is It Counterfeiters or the Supply Chain That's the Problem?"

Is Pharma Part of the Problem or Solution to America's Economic Woes?
	Solution
	Problem
	Both, as you say
	Unsure

Bad Journalism or Bad Pharma?

Bad Journalism or Bad Pharma?

My blogger friend Rich Meyer went on a bit of a rant against "bad journalism" and how pharma is often misrepresented in the news media (see "Bad journalism paints unfair picture of pharma industry").

The drug industry has consistently blamed the news media for painting an "unfair picture" (see, for example, my poll of readers here). I believe, however, that when you look at the evidence, you will find that there is a much higher percentage of articles in major media that paint a "positive picture" of the drug industry and often major news media merely quote verbatim from drug company press releases (see, for example, "The Cymbalta Buzz Machine is at Full Throttle!").

Recently, for example, Boehringer Ingelheim (BI) was chastised by the British Prescription Medicines Code of Practice Authority (PMCPA) for distributing a press release and briefing material for spokespersons that would in effect encourage members of the public to ask their health professional to prescribe a specific prescription only medicine. In fact, several news articles went even further and made some great marketing statements that BI could never make, such as referring to Pradaxa as a "super pill" and a "revolutionary drug." The stories also dissed the competition (warfarin) by referring to it as "rat poison" (see "BI Masters the Art of WOM through Its "Parrots," er, Spokespersons").

These are news stories about pharma products and not about the pharmaceutical industry itself, which is what Rich was focused on. Getting media to publish positive stories about products is very important to pharmaceutical companies. As for stories about the industry itself, well that's why they have the PhRMA trade association, which counterbalances negative stories in the press and competes with news media to influence lawmakers. They have a tremendous budget and the industry shouldn't worry too much about the sort of "bad press" Rich is talking about, IMHO.

In his post, Rich included a graphic image that depicts a TV "spoon feeding" a man sitting in front of the TV with a dazed look. I modified that image to depict how the pharmaceutical industry "spoon feeds" the media as evidenced in the PMCPA/BI case. I call it "Media as Middleman" or "Pharma Feeds Media Feeds Consumers."

Left out of this chain of influence are the Key Opinion Leaders who act as additional "middlemen" and put some further distance between pharma and the media, allowing for "plausible denial" - again as evidenced in the PMCPA/BI case.

Some time ago, I hosted the survey "How to Earn Back the Public's Trust," which asked respondents if they agreed that the media is the main culprit for pharma's bad public image because news media report mostly bad news about the industry and not the good that it does. Obviously, Rich Meyer agrees with this statement. However, only 51% of my survey respondents agreed strongly or somewhat (63% of pharma respondents agreed). While that was a majority, even more respondents agreed that other issues are at fault: such as "lack of transparency regarding negative clinical data" (81% agree) and "high costs of prescription drugs" (81% agree). See a more detailed analysis of this survey here.

Meanwhile, in an FCC Journalism Report, "complaints abound from seasoned reporters who lament the growth of 'press release reporting' and the lack of time they have to check out the veracity of information contained in a press release. Twenty eight percent of health reporters said that they personally get story ideas from public relations firms or marketing outreach somewhat or very often" (see "New FCC Journalism Report Paints Bleak Picture of Health Coverage"). A March 2009 Survey of American Health Care Journalists (AHCJ) found that just under half (44%) of staff journalists participating in the survey say that their organization sometimes (34%) or frequently (10%) bases stories on news releases without substantial additional reporting (see "Academics Exaggerate, Journalists Regurgitate. What About Bloggers?").

IMHO, this is "bad journalism," but of a type that tends to paint a more rosy picture of the pharmaceutical industry and the good it does.