The latest from DTC Perspectives

Main Street and DTC

It looks increasingly likely we will have a Democratic victory in November. That means Mr. Obama and an increased majority in Congress. The drug industry has donated to both candidates in fairly equal amounts indicating their lack of a clear preference and a hedge in their bets. The traditional Republican leaning of drug companies is absent this election because Mr. McCain has a record of criticizing the drug industry as greedy.

The new Democratic administration will build on its financial crisis Main Street theme in relation to taking on drug companies. We will get increased scrutiny of all promotional practices. Pharmalot reported this week that there may be joint hearings on DTC advertising. Senator Kohl wrote Representative Stupak that it may make sense to combine hearings.

Main Street dislikes drug companies almost as much as bailed out banks. Once the political opportunities wane for attacks on financial companies we can expect drug companies to be a nice juicy target. I do not anticipate any bans on advertising. I do expect much more vigorous enforcement from the FDA on drug company marketing practices.

Remember, DTC claims are subjectively reviewed. What may not be seen as misleading now may be in the future. A more vigilant FDA will find more things objectionable in drug ads and send more violation letters. Therefore drug companies will likely produce more conservative ads, both in claims and creative approaches. 

This new conservatism may make broadcast ads less appealing, as more hedged claims and increased risk information are required. It is likely that the more negative information required the more print, direct mail, point of care and Internet will benefit. These media have the opportunity to add more information at no cost, unlike television. On the other hand, increased conservatism will make drug companies hesitant to adopt social media or other new techniques.

Drug companies will not want to anger a new Administration and I expect them to be compliant with the wishes of DDMAC. After all, drug companies do not want accelerated government price controls, re-importation, and Medicare price negotiations. It is likely that drug companies will try to increase price support programs to blunt the issue of Main Street affordability.

The Democratic majority and White House are going to have some revenge on an industry they felt was anti-Main Street for years. I expect C-Span will be full of embarrassing hearings in 2009. I doubt any increased regulatory actions will take effect before 2010. That gives the industry some time for "what if" scenario planning. I hope DTC marketers will use some of 2009 to do just that. DTC will be here for good but the media allocation and creative content may change significantly.