According to a STAT analysis of hundreds of financial filings, the CEOs of approximately 300 health care companies collectively took home more than $4.5 billion in 2021. Regeneron Pharmaceuticals CEO Leonard Schleifer represented 10% of that total on his own, pulling in an astounding $453 million. Sometimes there are no words.
To address the “retention” problem, pharma companies are paying employees exorbitant salaries. The problem with that system is that people do whatever they need to to “hold onto” their high-paying jobs and become employees who are content not to excel. This is NOT what pharma needs.
I’ve been working with various pharma and biotech companies with my consulting group for over ten years. Some things have changed, but a lot has not. Here’s what I have learned during that time.
Before most drugs are launched, much time and effort are spent developing marketing plans and getting approval. However, given the rapid changes in the market and the realization that too many tactics are more hype than reality, fixed marketing plans are a waste of time.
I’ve seen some new energy and thinking taking root in some big pharma companies. Still, I’m also seeing some recycled executives show up at other companies when they should have been removed permanently from the industry.
The pharma industry’s reputation continues to slip from a pandemic halo-high of 62% in February 2021 to now when fewer than half, just 47%, of people have a favorable view of the industry, according to the Harris Poll’s latest survey. (Source: Endpoints News) Does anyone believe that pharma cares?
It’s not only getting harder for small biotechs to find funding; too many have scaled up operations by adding employees too quickly, forcing them to lay off people as the path to new drug approvals gets more complicated.
It’s hard not to read a story about how high drug prices are hurting patients, but while drug prices are too high and outpacing inflation, insurers, PBMs, and hospitals are taking huge slices of healthcare dollars with little notice from Congress and the media.