Demand Effects of Recent Changes in Prescription Drug Promotion

The release of clarified Food and Drug Administration (FDA) guidelines and independent changes in consumer behavior provide an opportunity to study the effects of direct-to-consumer advertising (DTCA) in the prescription drug market alongside the effects of various physician-oriented promotions. We examine the effects of DTCA and detailing for brands in five therapeutic classes of drugs, using monthly aggregate U.S. data from August 1996 through December 1999. In terms of impact of DTCA on demand, we provide evidence on two issues: (1) do increases in DTCA increase the market size of an entire therapeutic class? and (2) does DTCA increase within-class market share of advertised drugs? Our findings suggest that, for these classes of drugs, DTCA has been effective primarily through increasing the size of the entire class. Overall, we estimate that 13 to 22 percent of the recent growth in prescription drug spending is attributable to the effects of DTCA.

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Digital Direct-to-Consumer Advertising: A Perfect Storm of Rapid Evolution and Stagnant Regulation Comment on "Trouble Spots in Online Direct-to-Consumer Prescription Drug Promotion: A Content Analysis of FDA Warning Letters"

International Journal of Health Policy and Management ◽

10.15171/ijhpm.2016.11 ◽

2016 ◽

Vol 5 (4) ◽

pp. 271-274 ◽

Cited By ~ 6

Author(s):

Tim K. Mackey

Keyword(s):

Content Analysis ◽

Prescription Drug ◽

Rapid Evolution ◽

Direct To Consumer ◽

Drug Promotion ◽

Direct To Consumer Advertising ◽

Perfect Storm

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Regulation of prescription drug promotion: direct-to-consumer advertising

Clinical Therapeutics ◽

10.1016/s0149-2918(98)80012-x ◽

1998 ◽

Vol 20 ◽

pp. C86-C95 ◽

Cited By ~ 17

Author(s):

Minnie Baylor-Henry ◽

Norman A. Drezin

Keyword(s):

Prescription Drug ◽

Direct To Consumer ◽

Drug Promotion ◽

Direct To Consumer Advertising

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Pharmaceutical Marketing

10.1093/oso/9780190623784.003.0011 ◽

2018 ◽

Author(s):

Stuart O. Schweitzer ◽

Z. John Lu

Keyword(s):

Drug Market ◽

Drug Advertising ◽

Off Label ◽

Direct To Consumer ◽

On Demand ◽

The Us ◽

Pharmaceutical Promotion ◽

Direct To Consumer Advertising

The pharmaceutical industry has been heavily criticized for the amount it spends, as well as for the tactics it uses to promote drugs. This chapter begins by providing an overview of pharmaceutical promotion in recent years, and then offers a closer examination of each major promotional channel, including detailing, free samples, journal advertising, sponsorship of medical conferences, direct-to-consumer advertising, and e-promotion. It systematically reviews the contemporary health economics literature on the effect of pharmaceutical promotion on demand, pricing, utilization, and quality of care. The role of the FDA in regulating drug advertising is also examined, including the debate on whether the agency’s responsibility in this area should be expanded or curtailed. The last section of the chapter examines the issues of false or misleading advertising and off-label promotion. The focus in this chapter is on the US drug market.

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