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In Brazil Seven Out of Ten Purchases at Drugstores Are Not Sold Under a Doctors' Prescription Therefore the Success of a New Drug or New Concept is Only Partially in the Hands of Doctors - The Image of Pharmaceutical Industry in Brazil

Posted on: Thursday, 4 May 2006, 09:05 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c36434) has announced the addition of The Image of Pharmaceutical Industry in Brazil: Challenges and Opportunities to their offering.

A specter haunts the pharmaceutical industry in emerging markets such as Brazil, the threat to get permanently tagged as a model of social irresponsibility. The combination of societies with high social needs, growing upper hand of pharmaceutical corporations (particularly multinationals) with a reduced role for the State due to fiscal underperformance and overt des-estatisation of the economy, conflicts of interests between the industry and the government, frequent episodes of corporate misconduct or failures to properly address problems, issue salience, and negative coverage by the media represents a unique scenario favoring the multiplication of pressures over large firms to behave empathetically with its local community. Such vague notion of empathy translates into clear-cut expectations for social engagement, in addition to demands for positive and responsible behavior with regards to operational and functional activities and duties by companies.

Not too long ago, some players believed that putting those interests into the agenda remained limited to highly developed societies. Among the reasons to think that way were the expected requirement for high levels of education (or cognitive mobilization around CSR issues), aging populations (more likely to be sensitive to whatever performance of industry pharmaceutical and, thus, to generate critical mass yielding a watchdog public over companies actions and healthcare issues in general), and the existence of a concerned media and an interests-insulated State bureaucracy. But for different reasons the conditions to put the performance of the industry at the center-stage are gradually present in many emerging markets like Brazil, as well. For one, the Brazilian population has been aging rapidly, Government has become more assertive when confronting healthcare-related topics as a result of the growing spending pressure of health problems and plans to incentive a domestic pharmaceutical industry, media attention to healthcare issues and pharmaceutical behavior has skyrocketed, and a more attentive consumer public increasingly sensitive to companies actions or omissions for a better society has arise.

This trend impacting the industry, along with the recent scandals involving drugs from known brands, have deeply shaped public opinion and has made consumers and influential figures become much more susceptible to criticism towards the sector. In the face of the challenge to regain consumers' confidence, the task of redressing the reputation imbalance undergone by the industry occupies the centerplace of our discussion. And, in emerging markets like Brazil, that means going beyond the self-granted beliefs about pharmaceutical industry undisputed role and contribution to society.

This paper focus on discussion about the role played by CSR in regaining the confidence of the market (consumers and stakeholders), bringing insights about the attitudes and actions expected from the industry by the target audience.

Different from the majority of the studies conducted by pharmaceutical industries, which conduct their market research practically based on the intermediary public, the doctors, this study collected opinions from the doctors themselves along with those who influence public opinion (journalists, legislators, union leaders, activists from NGO, among others) and final, current and future consumers. It is expected that market researches broaden their target public and this paper shows the subtle differences in the public's eye about the opinions regarding the role of the pharmaceutical industry, and different demands in CSR and sources of criticism of the industry. In Brazil, where seven out of ten purchases at drugstores are not sold under a doctors' prescription, the success of a new drug or new concept is only partially in the hands of doctors.

A third important topic discussed is the role of generic drugs in regaining the positive image of the pharmaceutical industry. The release of generics has shaken up the pharmaceutical industry because they offer a clear and direct solution for the cost of medications in the industry, one of the biggest complaints of consumers. However, there still isn't a clear idea of the direction of the opinion about the pharmaceutical industry among the users and the non-users of generic drugs. For this reason, there is also a discussion about the existence of a consumption culture for generic drugs and to what extent this can be connected to the emergence of a boycott culture to brand name drugs.

Finally, we have summarized the main findings in contrast to the opinions of the diverse public that took part in the study and the implications to the pharmaceutical industry in general, as well as the implications of the findings in the work of market researchers.

For more information visit http://www.researchandmarkets.com/reports/c36434

Source: Business Wire

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