Direct-to-Consumer Advertising of Prescription Drugs

Abstract

The pharmaceutical industry spent over $US4 billion advertising prescription drugs directly to consumers in the US in 2004. The use of direct-to-consumer advertising (DTCA) has been a source of great controversy. Supporters of DTCA argue that it provides an important source of health information for consumers, increases the treatment of under diagnosed conditions and improves medication adherence. Critics argue that it misleads consumers, leads to overuse of medications, drives up prescription drug prices and costs, and harms the doctor-patient relationship. The impact of DTCA on public health should be viewed within the context of broader problems with underuse, overuse and inappropriate use of prescription drugs. A number of economic and marketing studies have examined the impact of DTCA on demand for prescription drugs. These studies suggest that DTCA expands total market sales but does not have any appreciable effect on market share within the class. In other words, DTCA increases the likelihood of an individual receiving drug treatment but does not have a significant impact on which drug is selected. Much less is known about whether this expanded use addresses the problems with underuse of prescription drugs, or exacerbates problems with inappropriate use or overuse of prescription drugs. The few studies that have been conducted on these issues suggest that DTCA probably leads to some appropriate use as well as some inappropriate use and overuse of medications. Formal cost-benefit analyses need to be conducted to determine the net effects of DTCA on public health and to inform policy makers charged with protecting the public interest.