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March 18, 2016 0

Despite pressure from all angles for stricter limits on prescription drug ads, the industry continues to expend billions on their campaigns. Sky-high spending has been continuously increasing over the past few years; surpassing the $5 billion mark this year. It is estimated that one quarter of this $5.2B came from five campaigns: Humira, Lyrica, Eliquis, Cialis, and Xeljanz. According to DTC Perspectives CEO and Chairman Bob Ehrlich, “there’s no doubt that [direct-to-consumer advertising] is now seen as almost a must-do for a drug that wants to be big”.

To read more about the controversy over pharmaceutical advertising, click here.

Lily Stauffer


March 11, 2016 0
Last week I wrote about the recovery in DTC spending in 2015. That should have been a happy event and one we all should have celebrated. Yet, another anti-DTC bill emerged in the Senate, sponsored by Al Franken and three other Democrats. This bill calls for ending the tax deductibility of advertising.
The bill will probably go nowhere based on constitutional free speech issues. Putting barriers on commercial speech uniquely for drug companies will fail. What industry will be next? Politicians do not like a lot of industries and why not limit those tax deductions as well? We know they dislike health insurance companies, gun companies, video game makers, tobacco producers, liquor companies among others.

Bob Ehrlich
“Let’s err on the side of more not less information.”
-Bob Ehrlich

What drug company executives have realized is that DTC is only one of many things critics hate about them. They know that if they stopped doing DTC to appease Al Franken, then he would still demand European prices, shorter patents, less detailing and sampling, and less tolerance for side effects. Therefore, drug makers have gone all in on DTC. They recognize that offering to give up their right to advertise a lawful product serves no purpose.

What politicians seem to think is that a public denied information is better served. They want an ignorant public because then they can influence providers and payers to avoid higher priced drugs. I have absolutely no problem with government and insurers offering effectiveness and price/value data to the public. An advertised drug may in fact not be better than a generic or non-drug alternative. Insurance companies, drug critics, government, and consumer watchdog groups are all free run counter advertising to drug ads with information on drug effectiveness, cost, and safety.

Instead politicians like Franken make the mistake of thinking the consumer is too ignorant to understand drug selection. It is a scary thought that FDA vetted advertising claims are considered dangerous and must be stopped. The rationale that $5 billion of advertising is too much in an industry that has $374 billion in sales is shaky logic. There is no impact on drug prices resulting from advertising. Advertising creates competition and consumer and doctor awareness of competing brands keeps price competition alive. Banning advertising means established brands face no DTC challenges from newcomers. Advertising certainly speeds up adoption as providers are pressured to learn about newly advertised drugs.

The drug industry cites numerous studies about advertising causing more diagnosis of disease earlier. That is a very positive benefit. Drug companies should not be afraid to also say they advertise to sell more drugs. That ability to advertise gives drug companies incentive to speed up drug development knowing they can tell the world through mass communication what they have discovered.

I know Sanders, Clinton and Franken would prefer some all knowing government agency overseeing drug development, testing, selection, and pricing. In that world of central planning, we as consumers, would have no say in drug selection. Advertising is just one source of consumer information and is of course designed to create brand requests. That is why the FDA reviews the ads for accuracy and why there are hundreds of health web sites to offer reviews of those drugs. Let’s err on the side of more not less information.

While consumers may complain about drug ads most learn about new drugs from advertising and I doubt they want to go back to the pre-1997 era. FDA is planning its first comprehensive consumer attitude survey since 2002 and I welcome that study. That could be fielded in late 2016, or 2017 as FDA moves at a government agency pace.

At the DTC National this April we will be discussing what the drug industry should do to respond to the latest threats and how marketers can influence public policy. Drug makers need to carefully balance the public concern while maintaining their right to advertise.

Bob Ehrlich


March 4, 2016 0

DTC spending continued its strong comeback in 2015, following a strong 2014. Spending was $5.17 billion in 2015 according to Nielsen, the best performance since 2007 when $5.33 billion was spent. Fueled by many new product launches, DTC advertisers spent heavily in 2015. Some of the biggest newer spenders were Xifaxan, Toujeo, Belsomra, Breo Ellipta, Harvoni, Trulicity, Jardiance, Namzaric, and Brilinta.

Bob Ehrlich
“DTC spending tops $5 billion in 2015…”
-Bob Ehrlich

The new spenders are across a wide array of categories including irritable bowel, diabetes, insomnia, COPD, Hep C, Alzheimer’s, and blood thinners. Returning to the $5 billion level is a strong recovery from $3.47 billion in 2012. In 2013, the DTC recovery began with $3.8 billion followed by $4.53 billion in 2014 and $5.17 billion in 2015.

The recovery has been fueled by both new products and a realization by drug companies that DTC is essential to drug success. DTC has largely been used for large incidence categories like cholesterol, depression, and diabetes. What has been a new trend is use for more limited incidence diseases like advanced stage cancer, Hep C, binge eating, sleep disruption for the blind, and advanced heart failure.

Many drugs with high annual price tags have started to use DTC heavily. Provenge, Harvoni, and Opdivo are a few of the drugs, costing up to $100,000 a year, to begin using DTC in the past few years. DTC is now seen as a way to raise awareness of premium price drugs which are harder to get on formularies. Ads create demand and put pressure on insurers to cover those premium priced drugs.

DTC spending should continue to grow in 2016 but likely will slow its growth rate. It is entirely possible we will see the 2006 record of $5.4 billion eclipsed. This is welcome news to media companies who have counted on DTC as a key revenue contributor. With higher spending comes more criticism from the army of drug company bashers. Despite the constant criticism, drug companies are eager to advertise because DTC works in creating consumer awareness and eventual higher sales.

In 2012, some industry observers and a few pharma executives were saying DTC was dying. That pronouncement was obviously premature given spending increases in 2013, 2014, and 2015. We who work in DTC have to continue to defend the use of consumer advertising. Critics will try to take away the right to advertise and our industry must provide the positives of advertising to politicians, the media, regulators, and consumers. Clearly drug companies have shown the desire to allocate more resources to DTC and should continue to do so in 2016 and beyond.

Bob Ehrlich


March 1, 2016 0

New technology in the form vitamin-sized capsules, known as edible electronics, may be the future of colorectal cancer screening. Currently in development, such capsules can be swallowed and used to capture images inside the digestive tract. One design known as PillCam, from Medtronic, uses two mini-cameras that are capable of capturing 35 frames per second. What distinguishes PillCam is its ability to harvest images of the small intestine; a particularly difficult spot to reach with the traditional scope. Innovative as they are, edible electronics are not yet a perfect formulation. During a procedure, doctors can spot polyps and usually remove them on the spot. With a PillCam, photos can be captured, but nothing can be removed. Despite this, the FDA has approved Medtronic’s device for screening certain types of colon cancer in those not suited for anesthesia. Looking forward, researchers strive to turn these capsules into full functioning robots, which are capable of both capturing images and performing tasks.

For more information about edible electronics, click here.

Lily Stauffer


March 1, 2016 0

With a sweeping 89-4 Senate vote, Dr. Robert M. Califf was confirmed as FDA Commissioner on Wednesday, February 24th. A cardiologist by training, Dr. Califf spent years supervising clinical trials within the pharmaceutical industry. In his interview, Califf stressed the importance of using electronic medical databases as early-warning systems to identify safety lapses of drugs and devices. Further, he is adamant on the subject of identification numbers on medical devices; explaining that such numbers will allow the FDA to distinguish between minor device glitches, and those that are a major safety threat. Lastly, Califf expressed his discontent on the topic of opioid painkillers, and believes regulation needs to made priority.

To read more from WSJ about Dr. Califf, click here.

Lily Stauffer