A doctor’s words can be powerfully wrong

For the healthcare industry, physicians are a critical asset. Their opinions can significantly impact patient opinions in the market. Therefore, it is critical for pharmaceutical and biotechnology to have a crisis management plan in place if a physician makes a statement against the company or product.

Renhe Pharmacy in China was faced with this crisis, and unfortunately they were not prepared for the backlash. In 2013, Renhe Pharmacy lost 10% in stock value after a doctor shared misinformation via a 140-character post on Chinese social media site Sina Weibo.

According to South China Morning Post, a Beijing-based doctor posted a message on Weibo that read: “Youkadan and Haowawa medicine have been proven toxic to children’s livers. Children under one year should absolutely not take it. Children under six should take it with caution.”

The doctor then encouraged high-profile users to share his post: “Why are their advertisements still in the media? Celebrities, please spread the message and have these commercials withdrawn.” The post was immediately shared, tens of thousands of times, by others including a Chinese television star who at the time had over 26 million followers.

Then the issue gets even worse, a popular Chinese comedian Song Dandan, who starred in a Chinese television ad for the medicine, posted an apology on Weibo for his role in advertising the medicine and vowed never again to support drug advertising.

But here is the big kicker. The doctor who originally posted the message later admitted that he had inadequate information, and China’s Food and Drug Administration issued a statement claiming the medicine was safe. This all happened way too late. Renhe’s share price dropped, and the company estimated it lost around one billion yuan (USD $160m).

So what could have Renhe Pharmaceutical done to dampen the crisis?

Evaluation

o Type of crisis: Major! Safety is a big concern in the pharma industry. Anything questioning the safety is a red alert issue.

o Truth: According to Renhe these statements had no validity. If that is true and the clinical data shows the product is safe, then Renhe has the truth on their side.

o Severity: The doctor makes a sever claim — that the drug is being recommended for children when it is very unsafe.

o Credibility: This doctor had significant credibility in the market and a broad social medial reach.

Strategy

o Deny, deny, deny: Assuming that Renhe is being truthfull and that the product has truely been show to be safe, Renhe should show the data that denounces the doctor’s statement.

o Corrective action: Develop a panel of experts to speak on behalf of the medication. As influencers in the community, they should spread the correct message on social media

o The content should be a simple 140 character statement on Weibo with a link to a letter from the Chief Medical Officer at Renhe. The letter should connect to the emotional concerns of parents and then show the data that supports the safety of the product.

Execution

o The sales and marketing team should be ready to deploy data and messages to the physician community.

o In addition, the company should prepare a panel of doctor’s to speak about the product at major conferences and events.

To conclude, this entire event could have been tampered with a quick response from Renhe and quick outreach to the medical community. Pharma companies should be prepared for these types of crises and quickly react with data and statements from key opinion leaders in the medical community.