A big reason that Americans pay more for drugs than citizens of "just about every other industrialized nation" is that drug companies spend so much on advertising. Drug companies actually spend about twice as much on advertising than they do on research and development.
Drug advertising has bothered me for some time. What the advertising does is encourage patients to ask for the newest, most expensive drugs even if other drugs would work as well or better for their particular cases. Most physicians will write a prescription for what their patients ask as long as it would be effective for what ails them. This increases the costs to patients and health care plans.
Drug companies have now announced new guidelines for their advertising which should make them a little less annoying and offensive. The guidelines include:
- An end to "reminder" TV ads that name a drug but not its use or risks.
- Submit TV ads to the Food and Drug Administration before they run, which many companies already do, so the agency can flag potential problems. The companies don't have to wait for FDA approval to run the ads.
- Restrict ads for drugs such as those for sexual dysfunction to TV shows "reasonably expected" to draw an 80% adult audience.
- Educate doctors about new drugs before starting consumer advertising. The guidelines don't say how long drug makers should wait, because each drug is different, says Billy Tauzin, CEO of the Pharmaceutical Research and Manufacturers of America, which wrote the guidelines.