Did the CEO of a major pharmaceutical company really publicly vow to “not engage in price gouging actions or predatory pricing”?
Yes, Allergan president and CEO Brent Saunders really did, in a blog that he posted on the company’s website this morning.
When I learned about the blog post from an article on TheStreet.com, I jumped to the post itself looking for fodder for a piece I planned to write about the dangers of making false promises in the digital age. I mean, we live in the era of the 300 EpiPen, where you have to increase the price of your pharmaceutical products by 4,000 percent before anybody pays attention to you. There was no way Allergan’s CEO promised to “take price increases no more than once per year and, when we do, they will be limited to single-digit percentage increases.”
But he did. And he encouraged his CEO peers to do the same.
And while this is fascinating in itself and good news for shareholders (Allergan closed up 1.34%), what I found most intriguing about Saunders’ blog post is that it was a textbook example (or would that be a “kindle example” now) of effective 21st century communications.
Here are four lessons you need to learn from one of the most unlikely blog posts on the Internet today.
You have to have something significant to say. I’ll admit I struggled a bit as I waded through the first few paragraphs of corporate-speak about “commitment to innovation, access and responsible pricing ideals” before I got to “we will limit price increases.” But then I was hooked.
You have to be candid. Check this out. Not only does Saunders vow that, “We will not engage in the practice of taking major price increases without corresponding cost increases as our products near patent expiration,” but he accentuates the point by admitting they have done just that in the past. “While we have participated in this industry practice in the past, we will stop this practice going forward.” That’s gold, Jerry! GOLD!
It helps to speak from the heart. I’m sure Saunders’ post had to get cleared by Legal, but it still contains the language of a man who is being honest. One small example: “I don’t like what is happening, and despite the fact that it is hard to speak out publicly on this, now is the time to take action to spell out what this social contract means to me.”
Deliver a call to action. A good blog post inspires. A great one directs people to act. And Saunders does just that. “For our industry to remain a vibrant and important part of the healthcare ecosystem, Allergan commits to this social contract and I encourage others to formulate their own self-policing actions.”
It’s not often that I am impressed by a corporate blog post, especially one signed by the CEO. But this one is worth the read.