Why we’re betting on Big Pharma? Momentum.
The momentum for COVID-19 vaccines & treatments is palpable — the whole world is watching and rooting Big Pharma on as they make major advances:
FDA emergency use authorization (EUA) of covid treatments from Regeneron (antibody cocktail, REGEN-COV2) and Eli Lilly and Co’s monoclonal antibody therapy bamlanivimab (LY-CoV555).
Pending EUA approval for BioNTech for their messenger RNA (mRNA)-based COVID-19 vaccine candidate BNT162b2 and Moderna for its mRNA-based vaccine candidate against the virus, mRNA-1273
The Decode
ON THE UP: Big Pharma & Healthcare
Here’s how Big Pharma & Healthcare are hitting all 5 Drivers of Momentum right now:
DISRUPTION: Pharma & healthcare get a fresh look. Consumers are now seeing the industry from the opposite POV. From “bad guys” to the heroes that will bring us to a better future and help us get back to living the way we want.
AdaptHealth is normalizing medical products and services to help manage health at home and at the office.
Their latest launch: COVID-19 return-to-work necessities. Their easy to use tools monitor health include:
Contactless infrared thermometers
Pulse oximeters to monitor trends in your pulse and oxygen saturation levels
Lumin Sanitizers — ultraviolet technology to sanitize your CPAP, CPAP accessories, and frequently used objects
Vivera Pharmaceuticals is partnering with EcoGroup USA for distribution of Vivera’s BioZone — a device for sanitization in high occupancy & high traffic settings.
BioZone combines facial recognition, integrated biometrics and a hospital grade FDA & EPA approved sanitization mist (OSM).
“Technology like BioZone is central to closing the gap between restoring safety and instilling confidence in workplaces and public venues again. An integrated solution, BioZone allows for maximum flexibility in how back to work or back to school protocols are set.” — Vivera’s CEO Paul Edalat
INNOVATION: Society is catching up to science. Magic mushroom companies are evolving their positioning & use cases to go beyond what they are famous for (recreational trips) to become more accepted in day-to-day life.
Compass Pathways evolved the positioning of psilocybin to focus on solving the mental health crisis — reinforcing that they are an innovative solution for treatment-resistant depression.
Compass even earned enough trust & credibility to become the first psychedelic company list on the NASDAQ and reach unicorn status.
WHOOP (the 24/7 human performance company) is partnering with Fieldtrip (a global leader in the development and delivery of psychedelic therapies) to measure the effect of psychedelic therapies on physiology and mental health.
The collaboration will initially focus on special operations veterans through Field Trip’s Basecamp division and then expand to the general population seeking treatment with psychedelic therapies.
POLARIZATION: The great debate in drugs, & pharmaceuticals & healthcare: Ideology vs. Science
The drug & pharmaceutical industry has become increasingly politicized, particularly this year, which can lead to people siding with ideology over science.
Oregon took a very clear stance siding with science when they passed Measure 110, becoming the first state to decriminalize possession of hard drugs. The decision did not come without discussion & debate. Some said the measure was reckless and would lead to an increase in the acceptability of dangerous drugs. Other district attorneys backed the measure based on evidence from other countries that have proved the effort reduces addiction & death rates.
With Measure 110, a person caught in possession of hard drugs has the option of paying a fine or attending new “addiction recovery centers” funded by tax dollar revenue from Oregon’s legalized, regulated marijuana industry.
“This is a big step in moving to a health-based approach instead of criminal punishment, and we’re devoting significant new resources to help Oregonians who need it,” said Janie Gullickson, co-chief petitioner of Measure 110.
STICKINESS: The industry is collectively leaning into their weak spot — distrust of the American people. They’ve realized marketing & corporate branding initiatives (over product marketing) will further instill trust, confidence and optimism in their brands & the industry overall.
Sally Susman, chief corporate affairs officer at Pfizer, is leading the way and providing the industry a roadmap. Pfizer’s “Science Will Win” campaign was influenced by company research suggesting that people wanted to hear from scientists, versus celebrities or politicians.
“I knew as a communications executive that I needed to operate differently, that themes like collaboration would become very important as opposed to competition” Ms. Susman said.
Now, many major pharma companies are taking chances with launching corporate branding initiatives and rethinking their marketing campaigns. They are shifting to a mindset of asking “how [will] this be perceived in the marketplace,” from (in the past) “how do we sell molecules.”
Pharmaceutical companies like Pfizer, J&J and Merck increased spending on corporate ads to $180 million during the first half of this year from $167 million in the first six months of 2019. Spending on product ads decreased slightly to $2.9 billion in the first half of 2020 from $3 billion in the same period last year
SOCIAL IMPACT: New nationwide neighborhood heroes — local urgent care facilities. “Coronavirus gives urgent care the opportunity to show their communities as well as government entities what urgent care is capable of.”
Despite multi hour long waits as the holidays approach, urgent care centers (Urgent Care, City MD, Minute Clinic, etc) have earned consumer trust for the long run beyond rapid testing because they’ve been available, reliable, hassle free and communicative throughout the pandemic.
The frontline workers at these facilities are working around the clock — monitoring lines from 5am through 11pm to ensure COVID-safety practices like getting rapid tests can be a (relatively) hassle free part of people’s routines so we can live the way we want to.
For many, COVID testing was their first exposure to urgent care centers, but it is definitely not their last. Now, many who would have typically prioritized a private medical office for other health related issues have a new sense of trust in turning to public urgent care centers first.
ON THE DOWN: Anti-Vaxxers
Originally, there was momentum for the anti-vaccine movement (with MFactors as high as 56 in March and 49 in July) because of skepticism for the process and uncertainty about long-term effects.
Now the MFactor has dropped to 32 this month down nearly 45%. People’s fears and skepticism may be subsiding with more facts about the vaccine, hard science to support and the fact that our healthcare workers will be first in line to get their dose. When the medical community and the scientists think it is safe to get the COVID vaccine, others will feel better about getting it too.
The Watchout
The pharmaceutical and healthcare industry are facing a unique “use it or lose it” moment with an opportunity to prove that they are truly a force for good.
As they gain momentum for providing a light at the end of the tunnel, they will need to reinforce their commitment to positive community impact, including accessibility, equality, transparency and society driven or risk reverting back to negative perceptions that they put profits over people.
An unexpected positive side effect of Project Warp Speed’s success?
It’s making us feel better about the rest of the pharmaceutical & healthcare industry too. And in the great debate of science vs. ideology, President Elect Joe Biden siding with science indicates he also trusts the pharmaceutical & healthcare industry.
Momentum for the pharmaceutical & healthcare industry is on its way up, moving from a low MFactor of 21 in June to 27 this month — 28% increase. The pharmaceutical industry is getting a much needed opportunity to reintroduce itself. The vaccine & treatments are creating a new conversation for the pharmaceutical & healthcare industry.
Our mindset could be shifting from drug makers as bad actors (Perdue Pharma getting patients hooked on opioids; Martin Shkreli raising pricesfor drugs like those used to treat HIV/AIDS; Elizabeth Holmes lying about effectiveness of Theranos’ innovative blood testing technology) to the industry that will take us to our future state with a Covid vaccine & treatment that will allow us to live our life on our terms.
The COVID vaccine & treatment developments could renew our confidence in the pharmaceutical industry’s ability to serve the greater good of society and to move beyond profiteering & bad actors.
They are giving us hope for the future and the promise that we will again be able to live, work, and learn the way we want, free from restrictions and precautions.