14
©2025 RXinsider | RXinsider Market Intelligence Group | 2025
CORE
THEMES
7. Reputation Damage and Product Integrity
Reputation damage is a significant and multifaceted risk in the healthcare and pharmaceutical industries,
often arising from legal, operational, and ethical failures. At the heart of this challenge is product integrity,
which underpins trust across the supply chain and patient care landscape. Any lapse in product quality,
safety, or compliance can quickly escalate into adverse publicity, stakeholder distrust, and long-term
brand erosion.
Product integrity
failures, including
recalls and
counterfeit supply
Lawsuits or product
failures tarnishing
corporate image
Key Risk Drivers:
• Drug recalls stemming from contamination,
expiration, or efficacy issues
• Errors in packaging, labeling, or dosage delivery
• Failures in temperature-controlled logistics
leading to product degradation
• Distribution of counterfeit or unauthorized
medications
• Legal and compliance failures that amplify
reputational vulnerabilities
Strategic Implications:
• Regulatory backlash and intensified oversight
• Loss of product exclusivity or market share,
undermining competitive advantage
• Significant financial and operational costs tied
to product recalls, legal settlements, and brand
rehabilitation
• Erosion of stakeholder and customer trust,
which can take years to rebuild
Negative perceptions of
environmental, social, and
governance (ESG) and
diversity, equity, and
inclusion (DEI)
practices
Adverse publicity and
brand erosion