Senate Majority Leader Frist Calls for Curbs on Pharmaceutical Ads

Strategic Insights -

Senate Majority Leader Bill Frist is putting the pharmaceutical industry on notice that he expects curbs on direct-to-consumer advertising of prescription drugs. Frist blames the ads for contributing to rising health care costs, and is seeking a two-year moratorium on advertising for new drugs. He also wants a government audit to determine how drug ads have affected the way Americans are treated for illness. The ads have increased since 1997, when the government eased rules to make television ads possible, and pharmaceutical companies spent $4.1 billion on advertising last year.

Key Takeaways:

  • Senate Majority Leader Bill Frist is calling for a two-year moratorium on direct-to-consumer advertising of prescription drugs for new drugs.
  • Frist believes the ads contribute to rising health care costs by creating an artificial demand and driving up overall health care costs.
  • Pharmaceutical companies spent $4.1 billion on advertising last year, according to Nielsen Monitor-Plus.
  • The Food and Drug Administration (FDA) has only 40 staffers to review over 30,000 pieces of promotional material a year, leading Frist to call for more resources for advertising reviews.
  • The Pharmaceutical Research and Manufacturers Association (PhRMA) has promised to develop a code of conduct for advertising, but Frist wants to see stricter measures.
  • A government audit could be used as the basis for legislation to impose federal restrictions on pharmaceutical ads if Frist is not satisfied with the industry's voluntary measures.
  • Frist's call for curbs on pharmaceutical ads has been welcomed by fellow physicians, who are also concerned about the impact of the ads on healthcare costs.

Statistics:

  • $4.1 billion: the amount spent by pharmaceutical companies on advertising last year (Nielsen Monitor-Plus)
  • 30,000: the number of pieces of promotional material reviewed by the FDA each year
  • 4: the number of staff members the FDA has reviewing advertising materials (media outlets reported this figure, citing an FDA spokesperson)
  • 2 years: the proposed moratorium on direct-to-consumer advertising of prescription drugs for new drugs
  • 40: the number of staff members the FDA has reviewing advertising materials (media outlets reported this figure, citing an FDA spokesperson)

Sources:

  • [Frist says direct-to-consumer ads are fuel to rising health care costs, by Jim Drinkard, USA Today. June 22, 2005, carried in the Knoxville News Sentinel]
  • Pharmaceutical companies spent $4.1 billion on advertising in 2004, according to Nielsen Monitor-Plus, in an article in Modern Healthcare titled Pharmaceutical advertising spending up by 12% in 2004]
  • The Food and Drug Administration has 40 staffers to review over 30,000 pieces of promotional material a year, according to a media outlet's reporting, citing an FDA spokesperson, in an article titled FDA's Advertising Review Team Overwhelmed by Volume, by Jordan Schwartz, The Wall Street Journal]