Pharmaceutical industries are a speciality world featured with high developmental cost, uncertainty, and failures. With time pharma business is expanding exponentially which has to lead to a surge in R&D failures. These failures correspond to the increase in the cost of the new molecular entities or drugs. For a pharmaceutical company to be successful, it should do a past research on the failures and follow a feedback loop mechanism.
What are Pharmaceutical Marketing Failures?
Pharmaceutical Marketing is the process of selling the pharmaceutical product (a drug, a vaccine, or a marker etc.) manufactured by the Pharmaceutical companies. Pharmaceutical manufacturing companies hire special person known as Pharmaceutical Sales Representatives (PSR) to sell their product. In spite, of all these, there are times when they fail.
Pharmaceutical Marketing Failure may be a result of an unlawful campaign, a fault in the pharmaceutical product, and death during clinical trials etc. These failures bring down the pharma business and account to a hefty loss. Some of the major Pharmaceutical failures are underpinned below:
- Promotion via Unlawful campaigns: Promoting a pharmaceutical product which has an unlawful marketing strategy or carrying a campaign that violates the human right. To resolve the criminal and civil liability a hefty amount must be paid. GSK paid an amount of 3 billion dollars for the Praxil. This drug was unlawfully marketed for treating depression in patients below 18 years of age.
- Food and Drug Administration (FDA) Approval: It is necessary for any of the drugs before promotion to pass the FDA approval. If the drug is marketed before approval it can lead to criminal charges. To resolve these charges the pharmaceutical companies have to resolve it by paying a ransom amount. Merck, a largest global pharmaceutical company had to fight for misbranding of Vioxx. Merck’s promoted the drug Vivoxx for treating rheumatoid arthritis before getting the FDA approval.
- Packaging failure analysis: Contamination in the pharmaceutical products can have serious consequences to the company as well as the public. It can be life-threatening and displease. Before marketing, the company should identify the chemical composition of contaminants. Any fault in the manufacturing processes and packaging can be a cause of contamination. A thorough packaging failure analysis is a must before promotion or selling of any of the product.
- Concealing the dangers: Some of the pharmaceutical companies to promote their products hide or conceal the dangers associated with it. This act is illegal and is a failure marketing strategy. Johnson & Johnson and its subsidiary Janssen paid more than $1.2 billion for the same act. The company concealed the dangers associated with an antipsychotic drug Risperdal.
- Information Imbalance: The producers, sellers, and consumers all should know equally about the quality of the product. In the pharmaceutical industry, if one party knows more than the other about the product it can create a gap for the market to fail. In the pharma sector generally, the consumer knows less about the drug than the distributors or sellers. It can lead to several informational issues like drug efficacy, drug quality and inefficacy of the drugs.