Policy Recommendations to Promote Prescription Drug Competition: A Position Paper From the American College of Physicians

Physicians Treating Alzheimer’s Disease Patients Should Be Aware that Televised Direct-to-Consumer Advertising Links More Strongly to Drug Utilization in Older Patients

“…expensive choice, limiting the competitive benefit of 88 generics on the market [10]. Soaring advertisement spending may also divert financial resources away from pharmaceutical research and development [11].…”

“…Although most advertising is regulated by the competition agency, the Federal Trade Commission, advertising of prescription drugs is regulated by the U.S. Food and Drug Administration (FDA) [1,11]. The FDA requires that drug advertisements convey a balanced disclosure of a medication's benefits and risks [10]. Pharmaceutical companies assert, however, that freedom of speech insulates them from many content restrictions, and the FDA to date has avoided wading into regulating anything beyond such disclosures [13].…”

“…Advertising for a drug without competition may inform patients about an innovative treatment option [ 1 ], but advertising in this context may also help create or maintain patient loyalty toward pharmaceutical products that are not strictly necessary for their ailment [ 6 ]. Moreover, advertising costs are simply passed on to the patient in the form of higher prices [ 10, 11 ].…”

“…Generic companies generally do not engage in direct-to-consumer advertising, given their low profit margins [ 12 ]. Thus, advertising for the brand alternative serves to push consumers toward the more expensive choice, limiting the competitive benefit of generics on the market [ 10 ]. Soaring advertisement spending may also divert financial resources away from pharmaceutical research and development [ 11 ].…”

“…Tax rules also provide advantages for direct-to-consumer advertising over other types of promotional activities. In contrast to other pharmaceutical promotion practices that are subject to spending caps, such as physician detailing, direct-to-consumer advertisement spending may be claimed as a tax deduction [ 10, 14 ].…”