{"id":986,"date":"2016-04-28T00:00:00","date_gmt":"2016-04-28T00:00:00","guid":{"rendered":"https:\/\/www.infodesk.cominside-the-debate-over-direct-to-consumer-pharmaceutical-advertising"},"modified":"2025-10-09T16:03:56","modified_gmt":"2025-10-09T16:03:56","slug":"inside-the-debate-over-direct-to-consumer-pharmaceutical-advertising","status":"publish","type":"post","link":"https:\/\/www.infodesk.com\/blog\/inside-the-debate-over-direct-to-consumer-pharmaceutical-advertising","title":{"rendered":"Inside the Debate over Direct-to-Consumer Pharmaceutical Advertising"},"content":{"rendered":"

Direct-to-consumer advertising in the U.S. pharma industry: recent developments and key stakeholder positions. Part one of a two-part series.<\/em><\/p>\n

With key stakeholders and regulatory heavy-hitters weighing in on both sides of the debate, life science information, regulatory and competitive intelligence professionals will benefit from a review of major issues and developments. Here, we will provide key background and updates on this important topic. The debate about direct-to-consumer (DTC) pharmaceutical advertising has been percolating for some time, but several recent developments have brought the issue to the forefront. The stakes are high, the stakeholders highly invested, as a number of critical issues coalesce into this lightning-rod topic: patient-physician relations; drug pricing; beliefs about the nature and necessity of capitalism and its role in healthcare; billions of dollars in R&D, marketing, and potential profits; not to mention the potentially life-saving treatments and care that stand at the center of it all.<\/p>\n

This debate is unique to the U.S. pharmaceutical market, where significant financial investment and complex regulatory oversight create a complicated battleground. (Only one other country, New Zealand, allows DTC pharmaceutical advertising.) Pharma spent $5.17 billion on DTC ads in 2015, a 14.9% increase over 2014\u2019s totals, according to FiercePharma<\/a>.  At such high levels of investment, it is clear that pharma industry insiders will be deeply affected by any major developments.<\/p>\n

Stakeholder Positions on Direct-to-Consumer Advertising<\/strong><\/p>\n

In November 2015, the AMA issued a press release calling for a ban on direct-to-consumer advertising of prescription drugs and medical devices. According to the release, physicians at the Interim Meeting of the AMA voted \u201cin support of an advertising ban,\u201d a move that  \u201creflects concerns among physicians about the negative impact of commercially-driven promotions, and the role that marketing costs play in fueling escalating drug prices. \u2026 Direct-to-consumer advertising also inflates demand for new and more expensive drugs, even when these drugs may not be appropriate.\u201d The call for an advertising ban came alongside other measures outlined at the meeting, including a physician task force and advocacy campaign aimed at addressing drug costs, and a call to monitor the pharmaceutical marketplace, mergers and acquisitions.<\/p>\n

More recently, a second physician group has spoken out against DTC ads. In March 2016, the American College of Physicians (ACP) released a piece in the Annals of Internal Medicine<\/em>, Stemming the Escalating Cost of Prescription Drugs: A Position Paper of the American College of Physicians<\/a>. Though the primary focus of the paper is, clearly, prescription drug costs, the ACP directly addresses direct-to-consumer advertising in its discussion, noting that marketing costs outpace drug R&D spending for many drug companies. The ACP goes on to call DTC advertising \u201cconcerning\u201d and \u201cinappropriate because it may undermine the patient-physician relationship and cause confusion.\u201d The ACP does not make a direct call for a ban, as the AMA did, instead stating that in the \u201cabsence of a ban on DTC advertising, ACP supports broad efforts by federal regulators to ensure that information about a drug\u2019s effectiveness and safety, and about alternative treatments, is clearly disclosed to patients.\u201d Further discussion of the ACP paper can be found via the Coalition for Healthcare Communication.<\/p>\n

Stakeholders Oppose Banning DTC Advertising <\/strong><\/p>\n

Drug makers and other pharmaceutical industry stakeholders oppose efforts to ban DTC advertising. Several industry groups have spoken out against the bans and in favor of direct engagement with consumers.<\/p>\n

Following the AMA\u2019s calls to ban DTC pharmaceutical advertising, the Association of National Advertisers (ANA) released a statement<\/a> calling the proposal \u201cwrong and misguided.\u201d In a follow-up interview with PharmPro<\/a>,  ANA\u2019s Dan Jaffe discussed his organization\u2019s position in more detail and made clear that the ANA \u201cdo[es] not believe prescription drug advertising is a driver of increased drug or medical costs in the U.S.\u201d<\/p>\n

Pharmaceutical Research and Manufacturers of America, or PhRMA, also takes a pro-DTC-ad stance. PhRMA\u2019s Direct to Consumer Pharmaceutical Advertising<\/a> page outlines its basic position and provides links to various resources, including the PhRMA Guiding Principles: Direct to Consumer Advertising about Prescription Medicines<\/a>. According to the Guiding Principles, PhRMA believes that \u201cDTC communications about prescription medicines serve the public health\u201d by increasing awareness, educating patients about treatment options, motivating patients to contact and engage with their physicians, increasing the likelihood that patients will receive appropriate care, and encouraging compliance with prescription drug treatment. The PhRMA statement also outlines communications guidelines designed to ensure compliance with FDA regulations. PhRMA\u2019s fact sheet<\/a> about marketing and promotion outlines research and statistics that support its pro-ad position.<\/p>\n

Analysis of Direct-to-Consumer Advertising in the U.S.<\/strong><\/p>\n

Responses to the debate over DTC advertising have been mixed, with stakeholders from all sides weighing in. In a Pharmalot column at STAT, Ed Silverman analyzed<\/a> the proposed ban and examined the various tactics that could be used to realize the AMA\u2019s ad-free dream. Silverman ultimately concluded that the ban is a \u201cdead end,\u201d not least because a new federal law would be required to put such a measure into effect, but he noted that compromise between the AMA and drug makers would likely yield more positive results. Medical Marketing & Media<\/a> provides additional discussion of the proposed ban.<\/p>\n

A New York Times<\/a> analysis published last month breaks down pros, cons and key statistics. Drug advertising is both costly and ubiquitous, with 80 drug ads per hour airing on American television and billions of dollars spent on DTC advertising each year. And while, as expected, drug ads increase sales, particularly of the promoted drug, the piece teases out a more nuanced picture of DTC advertising. Drug advertisements increase sales of other, nonadvertised drugs, and may serve to normalize stigmatized conditions like depression. Doctors benefit from consumer ads via increased physician visits, and patients may be more likely to comply with prescription drug treatment as a result of advertising. The piece also cites a lack of consistent evidence that ads lead to higher drug prices.<\/p>\n

A recent Adweek<\/a> article looks at the debate over DTC advertising in light of a larger pharmaceutical industry struggle to fight PR problems and restore a positive reputation. The piece examines the history of DTC advertising and major legislative and regulatory developments, as well as providing industry perspectives and revenue analysis.<\/p>\n

Michael Sinkinson and Amanda Starc, researchers from the University of Pennsylvania\u2019s Wharton School, discussed the likely implications of a ban on DTC advertising of prescription drugs in a 2015 paper, Ask Your Doctor? Direct-to-Consumer Advertising of Pharmaceuticals. The study found evidence of \u201cbusiness stealing effects among branded, advertised drugs,\u201d as well as \u201cpositive spillovers from drug advertisements to non-advertised competitors in the same class.\u201d The paper examines pros and cons of advertising and discusses impacts on profits for advertisers. Additional discussion of the paper can be found via this Knowledge@Wharton<\/a> article, which includes a podcast link.<\/p>\n

The Xtalks Vitals<\/a> life science blog provides a three-sided examination of the issue, considering doctor, patient and pharma perspectives on the effects of DTC advertising. U.S. News & World Report<\/a> offers a consumer-focused primer that encourages readers to remain skeptical and to seek multiple sources of information.<\/p>\n","protected":false},"excerpt":{"rendered":"

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