In the pharmaceutical industry, the consequences of selling defective drugs can be catastrophic. When a pharmaceutical company faces lawsuits for selling drugs that harm patients, it faces potentially crippling financial liabilities. At the same time, it also suffers significant damage to its reputation.
Recently, South Korean health company SD Biosensor suffered a lot of financial and reputational damage due to some of its products turning out defective. Health.com reported that their at-home COVID-19 test kits had bacterial contamination. This, coupled with the fact that SD Biosensor was dealing with existing lawsuits, gave it a bad rap in the medical industry.
Damage control becomes imperative in such situations. The company must act swiftly and effectively to minimize the fallout from the lawsuits and regain the trust of consumers and regulatory bodies. Here are six damage control strategies for pharmaceutical companies after being sued for selling defective drugs.
Prioritize Patient Safety
The first and foremost step for any pharmaceutical company dealing with the fallout of defective drugs is to prioritize patient safety. This means taking immediate action to recall defective drugs from the market and working closely with healthcare professionals to manage any adverse effects.
This proactive approach demonstrates a commitment to the patient’s well-being and helps mitigate the damage caused by defective drugs.
Communicate Clearly and Effectively
Pharmaceutical companies must establish clear and transparent communication channels both internally and externally. Internally, the company should ensure that all employees are aware of the situation, their roles in handling it, and the importance of maintaining confidentiality. Externally, the company must communicate openly with the public, healthcare professionals, and regulatory authorities.
Developing a crisis communication plan is essential. This plan should include a designated spokesperson who is well-versed in the issue, a timeline for releasing information, and strategies for addressing stakeholders’ concerns. Transparency in communication can go a long way in rebuilding trust with affected parties.
Collaborate with Regulatory Authorities
Pharmaceutical companies should proactively engage with regulatory authorities like the FDA. These agencies play a vital role in ensuring drug safety and efficacy, and their involvement can help restore confidence in the company’s products.
Cooperating with regulators involves providing them with all necessary information about the defective drugs, conducting thorough investigations, and implementing corrective actions as recommended. Collaborative efforts demonstrate a commitment to regulatory compliance and can expedite the resolution of the issue.
The FDA maintains an updated database of all the defective or problematic drugs it has recalled. Going forward, pharmaceuticals must ensure that they don’t end up on this list. Collaborating with regulatory authorities will help companies take necessary action before this happens.
Legal Strategy and Settlements
Pharmaceutical companies facing lawsuits for defective drugs must carefully consider their legal strategy. While it may be tempting to engage in protracted legal battles, this can be costly and damaging to the company’s reputation. Exploring the possibility of settlements can be a more prudent approach.
Settlements can help mitigate financial liabilities and minimize negative publicity. However, it’s essential to negotiate settlements that are fair to both the company and the affected parties. This may involve compensating patients for their injuries, covering medical expenses, or establishing a fund for ongoing medical monitoring.
Go back to the Tepezza lawsuit to better understand this, where Tepezza, used for treating thyroid eye disease, was linked to permanent hearing loss. Tepezza’s manufacturer, Horizon Therapeutics, went on to dispute the claims instead of settling initially. However, directly settling and admitting to their faults would have spared the company some of its reputation.
According to TorHoerman Law, a settlement amount is yet to be agreed on regarding the Tepezza case. However, it won’t be a cheap settlement, that’s for certain. Thus, these pharma companies need to be very careful regarding the legal strategies they deploy during such times of crisis.
Rebranding and Reputation Management
Rebuilding a tarnished reputation is a challenging but essential aspect of damage control for pharmaceutical companies. Rebranding efforts can help distance the company from the negative associations with defective drugs. This might involve renaming the affected products, redesigning packaging, and launching marketing campaigns emphasizing the company’s renewed commitment to safety.
Reputation management should extend beyond marketing. The company should actively engage with healthcare professionals, patient advocacy groups, and the media to address concerns and provide updates on corrective actions. Consistent and honest communication is key to regaining trust.
Preventive Measures and Compliance
Continuous monitoring of product quality and safety throughout the product life cycle is imperative. Implementing advanced technologies, data analytics, and risk assessment tools can help identify potential issues early, allowing for prompt intervention and resolution.
Furthermore, comprehensive training programs should be established for employees involved in drug manufacturing, quality control, and regulatory compliance. It is crucial to ensure that every member of the organization comprehends the significance of adhering to stringent quality standards.
As reported on Nature, untrustworthy clinical trials are very common in medicine. Thus, companies need to work with independent third-party auditors regularly. This is for assessing and validating the company’s manufacturing processes and quality control measures. Doing so will help identify and rectify issues before they lead to defective products.
In addition to these measures, staying up-to-date with evolving regulatory requirements and standards is essential. This includes not only adhering to local regulations but also staying attuned to international requirements, as pharmaceutical companies often operate in global markets.
Conclusion
Pharmaceutical companies must act swiftly and decisively when facing lawsuits for selling defective drugs. By implementing the damage control strategies discussed above, pharmaceutical companies can mitigate the impact of defective drugs. At the same time, they can work toward restoring their reputation and credibility in the industry.
