The Drug-price Transparency in Communications (DTC) Act of 2017 would require drug companies to disclose the Wholesale Acquisition Cost (WAC) of a prescription medication in DTC advertising
and in marketing to prescribers.
In terms of percentages, the biggest increase was seen in DTC advertising
: $2.1 billion in 1997 (11.9% of total spending) ballooned to $9.6 billion (32.1% of total spending).
Further, DeGeeter believes Invitae is the only company truly positioned to benefit from these trends due to management's focus on competing on cost of goods and price, expanding breadth of test menu and access to capital to fund DTC advertising
is delivering for pharmaceutical companies in that consumers are asking their physicians about the advertised drugs.
"When you talk about DTC advertising
, in some ways, it's kind of yesterday," says Jane Parker, CEO of InterbrandHealth.
However, unlike traditional print and broadcast ads, online DTC activities have the ability to cross international borders and be accessed by consumers in countries where DTC advertising
is not legal.
The AMA, however, was smart in its banning vote to emphasize that DTC advertising
unnecessarily inflates drug costs because, unfortunately, affordability is certainly something that regular consumers are all too qualified to understand, especially as it relates to health care and prescription medications.
In fact, the industry viewed the practice as "inconceivable." The majority of doctors, including physicians within the FDA, considered DTC advertising
of prescription drugs to be inappropriate.
OF HUMAN GENETICS 161, 168 (2008), available at http://step.berkeley.edu/Journal_Club/paperl_04212009.pdf ("[T]here is a public appetite for information about the fruits of the Human Genome Project, and that lack of clinical uptake of new tests can be addressed by DTC advertising
and test provision.").
Every $I the pharmaceutical industry spends on DTC advertising
yields $4.20 in drug sales.
(4) While DTC advertising
of POMs is allowed in only a few countries around the world, OTC DTC advertising
is allowed in many more countries, but even this is prohibited in other states.
The researchers noted that DTC advertising
for prescription drugs is regulated by the Food and Drug Administration and requires balanced information about the risks and benefits.