Consumer
Drug Ad Spending Surges
Excerpt
By Adam Marcus, HealthScoutNews
(HealthScoutNews) -- Drug makers tripled their spending on ads
pitched directly to consumers between 1996 and 2000, but the dramatic
increase doesn't appear to be connected to a 1997 government policy
that gave pharmaceutical firms more latitude to market their products
to the masses.
Spending on consumer ads rose from roughly $800 million in 1996
to nearly $2.5 billion in 2000, according to a new study that
appears in tomorrow's issue of the New England Journal of Medicine.
That direct-to-consumer ad spending should be increasing is
no surprise. The trend has been clear for nearly a decade. However,
the U.S. Food and Drug Administration (FDA) took heat for its
1997 marketing guidelines that critics said were too lenient to
industry. That policy -- which the agency considered a "clarification"
of its rules -- would lead to a flood of ads aimed at vulnerable
consumers with little means of distinguishing fact from hype,
skeptics claimed.
However, the result hasn't been quite as bad as some had feared.
"This really isn't as story about deregulation," says
Meredith Rosenthal, a health economist at the Harvard School of
Public Health and lead author of the study. Direct-to-consumer
marketing "has been growing very rapidly" on its own
for some time, she notes.
The 1997 policy does appear linked to one dramatic shift: Before
the clarified rules, spending on print ads and other materials
dwarfed that for television campaigns. However, drug makers spent
more than $1.5 billion on TV pitches by 2000, compared with
$893 million on the rest of their patient marketing efforts.
Still, those amounts make up only a small fraction of the total
marketing budgets of drug firms, the bulk of which is aimed not
at patients but at doctors. In 2000, for example, drug companies
spent more than $13 billion on professional marketing materials,
including nearly $8 billion in free samples and $4 billion
in office-based promotions.
Consumer ads have increased as a percentage of sales, from 1.2
percent in 1996 to 2.2 percent in 2000, the study shows. However,
even the higher number is well below the 11.8 percent figure in
2000 for professional marketing efforts. Total promotional spending
by drug companies hovered around 14 percent of sales during the
study period, while rising from $9.1 billion to $15.7
billion.
As other research has shown, drug companies devote the lion's
share of their direct-to-consumer dollars to a relatively few
products. The latest study confirms those reports, finding that
in 2000, 20 drugs accounted for nearly 60 percent of the marketing
budget for consumer ads.
Rosenthal says most of the drugs on the list have a few mild
side effects, and can be taken by a wide range of patients.
"You don't really want to be advertising a drug that has
a lot of potential hazards. It doesn't sound that good,"
she says. In addition, many drugs, such as antidepressants, treat
conditions clouded by embarrassment and low diagnosis rates.
Rosenthal and her colleagues also looked at whether drug companies
push members of select classes of medications. However, the answer
seems to be no.
"Compared with professional promotion, where all drugs
in a given class have relatively similar levels [of spending],
it appears when you look at them that there's a lot of variation
within class" for consumer advertising, she says.
Steven Findlay, of the National Institute for Health Care Management
Foundation, says the trends reflect the drug industry's approach
of jumping into the direct-to-consumer marketing waters -- with
one foot.
"They're taking a few of their big and most salable products
to a broad base of the public," says Findlay, who has studied
the phenomenon. "They don't have endless ad budgets, and
they can't afford to spend $150 million on every one"
of their drugs.
In a separate article in the journal, two Harvard researchers
express concern about the medical device industry's aggressive
promotion to consumers of certain screening tests. They point
to two technologies, both of which involve CT scans, for artery
disease and various cancers, which people are encouraged to seek
despite no data supporting their usefulness.
"We have serious reservations about the clinical, financial
and ethical implications of offering these tests as screening
interventions that are marketed directly to consumers," write
the authors, Drs. Thomas Lee and Troyen Brennan.
The drug industry says the surge in direct-to-consumer marketing
is a boon for both doctors and patients.
"The physician-patient relationship is strengthened, not
weakened" when advertisements prompt patients to discuss
a condition for the first time, writes Alan F. Holmer, of the
Pharmaceutical Research and Manufacturers of America in Washington,
D.C. Marketing materials promote patient education, he argues,
and prescription drugs "are often the most effective and
least expensive form of health care."
However, consumer advocates take a dimmer view.
"Although increased access by patients to accurate, objective
information about tests to diagnose and drugs to treat illnesses
is an important advance, confusion arises when commercially driven
promotional information is presented as educational," writes
Dr. Sidney Wolfe, director of Public Citizen's Health Research
Group, a Washington, D.C., nonprofit organization.
Spending on prescription drugs is the fastest-growing segment
of the health-care economy. While spending on ads to consumers
has soared, Wolfe writes, the FDA's ability to adequately police
the claims has waned.
Wolfe calls the agency's marketing oversight division "grossly
understaffed," and notes that since 1998 the number of enforcement
actions it has taken has fallen sharply -- from 158 to 73 in 2001
-- even as drug ad budgets have ballooned.
Findlay says his group is "agnostic" on the debate
over whether direct-to-consumer ads do harm.
"They could be playing a very beneficial educational and
informational public health rose, or they could well be leading
to an increase in inappropriate demand and inappropriate prescriptions,"
he says. "We simply just don't know."
What To Do
To find out more about medications and how they're regulated,
visit the FDA.
You can also check out kaisernetwork.
For the industry's perspective, try the
Pharmaceutical Research and Manufacturers of America.
Reference
Source 101
For more information on how to prevent other diseases, use
PreventDisease.com's "Quick
Prevention Resources".
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