Pharma analysts attuned to the value of reputation

Share this article:
Financial analysts who follow the pharmaceutical sector are far more attuned to the value of corporate reputation than colleagues covering other areas, according to a Hill & Knowlton study.

As part of its annual Return on Reputation survey, the PR shop asked 51 analysts specializing in the pharma and healthcare sector how they weigh the companies they look at. While pharma analysts had much in common with colleagues tracking other sectors, they rated CEO leadership significantly higher as an indicator of a firm's fiscal health. 

“Most CEOs regularly speak on their company's achievements and milestones,” said Paul Oestreicher, US director of Hill & Knowlton's healthcare and pharma practice. “However, it is taking it to the next level by being actively engaged as a leading commentator on industry or healthcare issues that analysts are seeking.”

Pharma analysts frequently cited corporate culture, governance and transparency as critical factors, and nearly twice as many cited the importance of gaining third-party support to help repair a damaged reputation as did their colleagues. 

“This is certainly something the pharmaceutical industry has long recognized, relying on independent credible opinion to reassure stakeholders when the company, its services or products are under fire,” said Oestreicher. “With the challenges to the reputation of pharma companies at their highest level ever, the need to nurture and expand relationships is even more acute.”
Share this article:
close

Next Article in Features

Email Newsletters

More in Features

Antidote: On Cystic Fibrosis treatments

Antidote: On Cystic Fibrosis treatments

Recent treatments in CF, including the inhaled antibiotic Tobramycin, have increased lifespan well into adulthood.

The $3 generic and the $1,000 pill: pharma outsiders just don't get it

The $3 generic and the $1,000 pill: pharma ...

What do you call the people who treat medical breakthroughs as if they were bank heists? Malicious? Uninformed? Not with it?

Leadership Exchange Uncut : The Agency-Client Relationship

Leadership Exchange Uncut : The Agency-Client Relationship

Click the above link to access MM&M's first Leadership Exchange Uncut e-book, "The Agency-Client Relationship"