Regulating TV Commercials for Prescription Drugs
FDA, Pharmaceutical Firms and TV Gear for Congressional Fight
Aug 12, 2009
Congress may decide in the coming months whether pharmaceutical companies can continue to run television commercials promoting prescription drugs the way they have for the past dozen years. The stakes are extremely high for drug companies, network and cable television and, according to the industry, for patients who need such information.
The multifaceted battle appears to be coming to a head, in the midst of the health reform movement, after several years of low profile maneuvering on the several sides of the issue:
- Should the pharmaceutical companies be allowed to advertise drugs directly to consumers?
- If allowed, should the commercials be delayed six months to two years after the drug is approved by the Food & Drug Administration (FDA)?
- Should doctors be allowed to advertise the drugs?
- Should actors to allowed to portray doctors in the commercials?
- Should commercials be approved by FDA before they are used?
- How much say should FDA have regarding the content and theme of the ads?
The number of issues is small compared to the large number of participants and special interest groups lining up for the battle. In addition to the pharmaceutical companies, television networks and cable operators, it will involve deeply committed members on both sides of the Congressional aisles, the FDA, doctors and hospitals, as well as consumer, patient and health groups.
Ask Your Doctor About....
TV viewers, some of whom have found humor in the lengthy lists of drug side effects required in the commercials, will probably watch from the sidelines. They joke about one of the best known phrases in advertising: "Ask your doctor about......."
But with $4.3 billion in advertising at stake, the issue is not funny to either pharmaceutical companies, publishers or television executives. The drug firms say the commercials provide the public with important medical information. They say the advertising is already strictly regulated by FDA and more controls will violate their freedom of speech.
According to Analyst John Busbice of IMS Consulting, every $1 spent on prescription drug advertising brings $1.40 in sales.
Drug Commercials Misleading?
Critics complain that the commercials:
- Are often misleading
- Create unnecessary health fears
- Pressure doctors to prescribe medicines they would not ordinarily recommend.
- Increase the cost of drugs and the overall cost of health care.
The pharmaceutical industry rejects all of those charges.
Drug Side Effects
Under Congressional pressure last year, several pharmaceutical companies agreed to delay consumer advertising of new prescription drugs for six months. They would use that time to evaluate the drug use and to educate doctors on the promises and potential side effects of the new products.
According to USA Today, ad spending on prescription drugs was second only to autos in 2008. But the pharmaceutical firms decreased their spending nearly 20% last year, dropping from $5.4 billion to $4.3 billion. It was the first drop since FDA approved the format in 1997.
There’s no indication yet when Congress will vote on the drug advertising issues, especially now that it has been linked to the even more controversial health reform battle.
References:
"Push On to End Prescription Drug Ads," by Theresa Howard, USA Today, 8.10.09
Prescription Drug Advertising on Television
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