In a Wall Street Journal blog by Alicia Mundy (July 15), Billy Tauzin, head of PhRMA was quoted saying, “Our members were advertising life-saving medicines like it‘s Pepsi and that hurt us.” Tauzin was referring to all the flak from Congress recently leading to new promotional guidelines on gifts to physicians, as well as the 6 month voluntary DTC advertising moratorium on new products agreed to by several companies.

Tauzin wants to “stop the bleeding” in reputation of the industry. He wants drug companies to get ahead of the stories that are negative. Ok, good comments, Mr. Tauzin. The drug industry has a lousy reputation and it is not getting better as I reported a few weeks ago from a Harris Survey.

On the other hand, where has PhRMA been during all of this decline in reputation? I do not remember PhRMA being a leader to head off the trouble. I realize they just reflect the will of their members but their DTC code was introduced about 10 years after it was needed. I do not remember any push to lower prices until a few years ago when the PPA with Montel Williams became active. Tauzin may be different from past PhRMA leaders in his desire to change drug company behavior to be more public-centric. I certainly hope so. The reality is all of the issues creating negative feelings have been around for a decade and drug companies were aware of their declining image.

The industry will not stop the image bleeding unless the following occurs.

First, anyone who is among the low income uninsured or underinsured needs to have drug prices that are affordable through price support or free drug programs. I know PPA is supposed to provide that help. The true measure of its success is the proportion enrolled being high enough to change the perception. I think the current numbers are low in proportion and the publicity on that program needs to be greatly increased. Saying it exists and making it work are two different things. Congress will only back off price criticisms if they no longer hear their constituents complain.

Second, safety issues must be dealt with quickly and pass the smell test. Drug companies with safety issues must bite the profit bullet sooner if they are to build credibility with the public. Denial and legalistic defenses may delay product withdrawal and liability payouts, but that delay comes at a price of image. PhRMA must act to ensure all risks are clear in any advertising, and that means readable patient friendly brief summaries should be part of any code.

Third, drug CEO’s need to get more involved in ensuring their organizations are more consumer-centric. I have said this many times, but drug companies are still largely detail sales, clinical research, regulatory and legal organizations. Neither their senior management teams nor their boards are usually consumer-centric in background and action. Are there any senior managers reporting directly to the CEO who represent consumers? Please let me know if they exist.

Fourth, drug companies must succeed in developing the breakthrough drugs. I know they are trying and expending a lot of money in the effort. Until we see significant breakthroughs, however, it is unlikely more me-toos will convince the public and Congress that drug companies deserve a break in criticism. When the DTC is on cancer cures, no one will criticize drug companies for the creative style of their ads.

So, Mr. Tauzin, keep pushing the drug CEO’s to stay ahead of the issues. Unfortunately, given the bad public reputation, Congressional outrage, low stock prices, and escalating layoffs, they have a long way to go.

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