How Do Pharmaceutical Companies Protect Their Brand?

Drug companies are not like other manufacturing companies and for many years have not protected their brands by directly advertising to consumers, although this is changing. Additionally, pharmaceutical companies lose $75 billion dollars a year to counterfeit drugs, as of 2010, according to Pharmpro.

Types

• Pharmaceutical companies protect their brands through anticounterfeiting measures and by establishing a brand image with pharmacists, medical professionals and consumers.

Features

• Anticounterfeiting methods employed by pharmaceutical companies to protect their brands include coding a drug so that the consumer may text message the unique code and check the authenticity. Other measures include an electronic pedigree that tracks drug data throughout the supply chain. Advertising is focusing on expanding market recognition of established brands and over-the-counter drugs, and building name recognition of new prescription drugs.

Function

• Some pharmaceutical companies protect their brands through centralized functions, while others have a dedicated department for the role of brand security. The cost of such activities ranges from several hundred thousand to millions each year.