Thursday, January 07, 2016
Unwarranted
It
is a CEO's nightmare to have his company singled out for a product defect that
isn't true. That is what happened to pharmaceutical manufacturer Regeneron.
Because of faulty reporting in a Federal database of side effects from
its new drug, Praluent, investors rushed to dump the stock. It turns out that a suicide related to its
medication was reported over and over again providing the impression that the
drug's side effects could be lethal. The
Food and Drug Administration tried to clear the situation up but the damage was
done. There is no way to sue the FDA for
the misreporting nor, for that matter, those who noted the incident in good
faith. Now the CEO has to rebuild
credibility for his drug and boost sales.
It is a tough PR challenge made worse by the way that it happened.
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