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February 14, 2025 0

Pharmaceuticals joined the big advertising game in New Orleans, running two :60 spots. They were not ads for a particular brand but were corporate type messaging. Novartis focused on breast cancer in what was a unique creative montage of showing breasts in a myriad of situations both real life and in art. This ad was certainly 180 degrees different from what would be expected in a drug company breast cancer awareness ad. For about 40 of the 60 seconds the theme was just look at the breasts with a musical background saying “I know you are looking.” Actress Hailee Steinfeld was part of the montage.

Then, in the last 20 seconds, a more conventional looking appeal started for diagnosing breast cancer with comedian Wanda Sykes. She encouraged patients to get early detection and treatment. Clearly Novartis wanted to break the mold of the standard disease education ads. They did.

You can’t be boring, and Novartis and Pfizer certainly met that requirement.

Pfizer was also up to the creative task with its highly engaging cancer research ad. Showing a child in a hospital bed who then gets up and parades through the streets in a Rocky-like scene with boxing attire. A super appears saying to cancer that we are going to knock you out. Singer LL Cool J provides the background song. Then the ad closes with a super saying Pfizer is working on drugs for eight different cancer breakthroughs by 2030.

Both ads are excellent in getting the stopping power needed for a Super Bowl entry. You can’t be boring, and Novartis and Pfizer certainly met that requirement. Each ad left you guessing what the ad was for until its last third. This is in keeping with Super Bowl ads in general trying to hook you on a story before revealing the sponsoring brand or company.

Branded drug ads are just not going to work on the Super Bowl. Spending millions on an ad with half devoted to risks and side effects does not make sense. That brings us to a third drug ad, but not from a drug company. Hims & Hers, a direct seller in many drug categories, ran a provocative ad critical of the cost of drugs and saying the health care system is not working for us. The first part of the ad was on obesity disease education; fairly standard stuff. Then the ad tore into the weight loss industry for failed approaches and pharma for high prices. Then it turned to how Hims & Hers has affordable meds made in the USA.

Congress is concerned that companies like Hims & Hers are advertising drugs with no fair balance. Proposed legislation would treat these drug sellers similarly to pharmaceutical companies. After all, they are making drugs through compounding and are trying to diagnose and sell directly. Sounds like a drug maker. Why are they able to compete with drug companies but allowed to eschew fair balance? These compounded drugs carry risks and side effects similar to Wegovy or Zepbound. Hopefully Congress will impose reasonable requirements to add fair balance as these types of direct sellers are booming. The Hims & Hers ad was attention getting and tapped into the concerns consumers have about GLP prices. That said, it is ironic the only Super Bowl drug ad was not from a drug company.

 

Bob Ehrlich

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January 30, 2025 0

The idea of mandating drug price disclosure in DTC ads is here again. A bi-partisan Senate bill was just introduced by Senators Durbin, Grassley, and six others calling for mandatory listing of the wholesale acquisition cost in ads. It is called The Drug-Price Transparency for Consumers Act of 2025.

As with prior attempts, this is bad policy. List prices are not what consumers pay. They are nowhere near what the overwhelming proportion of patients will eventually pay if insured. This bill is meant to discourage DTC advertising by creating a false belief that many drugs are “outrageously” expensive. Their rationale is consumers deserve to know the price of drugs being advertised. They say many other products list their price in ads so why not list them for drugs.

The problem is consumers only care what the final out of pocket cost is to them. Drug pricing is overly complex and that is a legitimate policy issue. Telling consumers a cancer drug is $5,000 a month in a DTC ad is not at all helpful to them if they actually pay $50 with insurance. All that faux disclosure might do is scare them into thinking they cannot afford it.

The bill sponsors’ logic is faulty that listing price creates transparency and price competition. There is no evidence that listing drug prices creates competition given the list price is nowhere near actual patient price. Yes, it may work for automobiles, but not for prescription drugs.

This bill is a blatant attempt to discourage drug ads because payers would prefer consumers not request information on high-priced drugs. Government, insurers, and other payers want to be the sole deciders on what drugs patients can get. DTC is inconvenient for them if a doctor prescribes a high-priced therapy. Does Congress think doctors are prescribing a $100,000 drug for cancer just because a consumer saw an ad?

If this bill passes, drug makers will have to add another useless super in the ad. They can do it if required but will not be intimidated into dropping their DTC ads. Clearly this bill is something the courts might weigh in on as the forced price disclosure inhibits commercial free speech.

Telling consumers a cancer drug is $5,000 a month in a DTC ad is not at all helpful if they actually pay $50 with insurance.

Unfortunately, this bill may just be one of many tactics Congress or HHS will use to try to discourage DTC ads. Robert Kennedy, Jr. wants to ban DTC TV ads outright, but that is unconstitutional so expect approaches that make it harder to do DTC. That could be through tax policy on deductibility of advertising costs, increased OPDP interpretations of violative language, more requirements for fair balance, and lobbying pressure by insurers and payers to limit DTC.

I get the frustration that Americans pay more for prescription drugs than other developed countries. This is a highly charged issue and deserves policy debate. Limiting DTC advertising for lawful products will not affect prices. That $8-10 billion being spent on DTC annually is not significantly driving up costs given our drug spending is over $500 billion annually. Of course, I admit drug companies advertise to increase demand. Given an average ROI of 2 to 1, advertising likely adds $16-20 billion to sales or about 2%. Would drug companies cut prices if they did not spend on DTC? No, they would reallocate to other promotional techniques or other investments.

It is time for Congress to stop trying to ban or restrict DTC. They are grandstanding to the American people with full knowledge their bill is not a real solution to reducing drug costs.

Bob Ehrlich

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January 14, 2025 0

I’ve been pondering what the revolution in artificial intelligence (AI) truly means for DTC marketing. Can my aging brain grasp how AI works? Does it mean DTC advertising could be developed without engaging real patients, or even without agencies crafting the ads? Could we one day see virtual pharma marketers? Imagine our annual Top DTC Marketers list featuring artificial entities — what a surreal awards dinner that would be!

After speaking with experts, it’s clear that AI offers DTC marketers a vast ocean of opportunities. The potential benefits span the entire spectrum, from concept testing to producing polished ads. Faster copy development, reduced costs, and more options to present to real patients could redefine the process. Envision a world where virtual focus groups test ad concepts in mere seconds. Every target group could evaluate countless concepts, with AI instantly refining them until the ideal message emerges.

AI offers DTC marketers a vast ocean of opportunities, from faster concept testing to personalized ad creation.

Imagine media teams using AI to virtually identify the optimal omnichannel mix, tailored to every patient target group. The current array of media choices is already overwhelming. AI could enable us to explore every option at a micro level, creating unparalleled precision.

We’ve already seen digital advertising move in this direction. However, DTC remains television-centric, with about 60% of spending focused there. Most consumers are exposed to just a few ad executions per brand. AI could change that dramatically, enabling instant variations that adapt to the viewer. Those three standard ads could become 300, each optimized for the audience in real-time.

Of course, significant challenges lie ahead. The steep learning curve of adopting AI will inevitably slow its widespread use. Internal legal and regulatory reviews remain essential. The OPDP may also struggle to oversee a world of hundreds of promotional variations.

The advice from AI experts is clear: experiment with the tools available now. Adoption will take time, but starting small is the first step for pharma marketers. Ultimately, AI is a tool for human marketers to create more personalized and effective ads. My hope is that AI will lead to more creative, distinctive ads that cut through the clutter of DTC advertising.

Every pharma marketer should challenge themselves, their agencies, and their research partners to integrate AI into their processes. Start small, experiment, and see where AI can lead you. The journey will undoubtedly be challenging, but the potential rewards make it a path worth exploring.

Bob Ehrlich

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January 8, 2025 0


Media courtesy of Vivvix

 

Can a drug commercial shock me? I have been watching them, analyzing them, and critiquing them for almost 30 years. Jardiance is well known in the ad world for its musical- and dance-themed diabetes ads. Love them or hate them, they are different and effective.

In announcing a newer indication for Chronic Kidney Disease (CKD), Jardiance has gone about as far away from its use of musical format. It used animated CGI turtles playing soccer. It is very basic in its messaging. The main turtle says Jardiance can slow the progression of CKD and reduce the risk of kidney failure. Obviously, turtles know how to slow things down as the lead turtle tells us.

Was I shocked when I saw the turtle ad? Yes, but shock is not necessarily a bad thing in advertising.

I have no issue with the ad itself. It is different, easily understandable, and likable. The question is can or should a brand so dramatically change its creative approach without risking confusing its audience? The advertised CKD indication is different, but does that merit a 180-degree shift in creative?

Could Jardiance have just added the new indication to its current campaign with a super or voiceover? I assume they wanted a separate campaign because the CKD indication is not only targeted at people with diabetes. It is also hard to create a second song dedicated to CKD. That said, I still wonder if the brand image might be affected by such a drastic shift in creative approach.

As one who has argued that too many DTC ads are formulaic, I applaud the use of new approaches. The fact that the new Jardiance ad is so different from the musical version does make for some interesting discussion. There are many multi-indication brands in the DTC world. I have yet to see a brand that has veered so far away from its current creative approach as Jardiance when adding new indications. That is not a criticism because they obviously have research showing the ad works. Was I shocked when I saw the turtle ad? Yes, but shock is not necessarily a bad thing in advertising. On the Golden Globes, the turtles ad certainly broke through the heavy DTC ad clutter. We shall see if this ad is just a brief announcement campaign. But if getting noticed was the goal, it worked.

 

Bob Ehrlich

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December 10, 2024 0

The obesity drug market potential is staggering. America is overweight. I am overweight. My friends are overweight. Willpower is obviously not the solution because most of us cannot sustain it. We need to get by with a little help. About 40% of adults in America are obese according to the CDC. Thankfully, we have two currently approved drugs in the GLP-1 category. Wegovy and Zepbound from Novo Nordisk and Lilly, respectively, currently lead the category. Others will follow.

There has never been a category so suitable for DTC advertising. High incidence, easy understanding of the condition, and fast action to see results are the hallmarks of a no brainer DTC drug. A JP Morgan analyst predicted the GLP-1 obesity market will grow to $71 billion by 2032. There are about 110 million Americans who could benefit from using obesity drugs. Currently only about 6% are using them according to the Kaiser Family Foundation.

Wegovy has been blasting its availability over the past year. We have all seen the great march of people down the street DTC ad. The power of “we”. Lilly’s Zepbound started DTC advertising mid-November. Supply issues made advertising unnecessary until capacity issues were resolved. Production has been recently expanded according to Lilly.

Lilly has set up its direct distribution system to consumers to offer that alternative to regular channels of retail pharmacies. They are ready to promote demand growth.

You can count on several new competitors in the next few years as the great gold rush for this market is making drug makers salivate. Lilly and Novo Nordisk know their premium priced drugs will be facing lower priced entries. The window for maximizing sales at premium prices is short. Insurers will be gradually increasing coverage because the added benefits of these drugs are exciting. At current prices, insurers are not rushing to cover them.

The weight loss category from GLP-1 drugs is set to become a massive DTC advertising spender, reshaping how America addresses obesity and its related health challenges.

Research studies are showing a litany of health outcomes beyond weight loss such as reducing blood sugar, blood pressure, heart disease, addictive behaviors, and potentially dementia. It is just a matter of time before they are covered because of the potential reduction in costs of treating heart disease, diabetes, and dementia.

The pressure will be on drug makers to make these drugs more affordable to the average American. Hearings in Congress were recently held with the Novo Nordisk CEO to pressure the company to lower prices on Ozempic and Wegovy, which run about $1,200 a month for self-pay. Discount cards are available, so the real consumer price is about $600 a month unless covered by insurance.

DTC ads will help keep demand high and new competitors will eventually drive down price. Expanding capacity will allow both Lilly and Novo Nordisk to reduce price and make it up on volume. After all, better to have more customers on these drugs for years at affordable prices than have them start and stop due to cost.

Once we see new competitors, we will see DTC ads evolve to highlight brand advantages. Those might be based on price, form of dose as in pill or injection, frequency needed, side effects, efficacy of weight loss, or other collateral health benefits. The weight loss category from GLP-1 drugs is going to be a massive DTC spender for years to come.

Bob Ehrlich

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December 2, 2019 0

 

Your parents are the ones who always take care of you.  Mom kissed your knee when you fell on the playground, and Dad drove you to the hospital when you needed to get your tonsils out.  Your parents kept you healthy and safe.  They were your rock and knew all the answers and just what to do.

Time passes.  You’re in your thirties and somehow in an instant the role of caregiver has flipped.  This was the case for me.  Nothing could prepare me for the moment I learned my mom, my rock, was diagnosed with a form of non-Hodgkin’s lymphoma.  I recall googling “NHL” only to be served hockey statistics; I was frustrated and scared.  Every time we went to see her oncologist or when I accompanied her to chemo, I would get hit with a wall of anxiety.  Each time we stepped into the hospital, what my mom and I truly needed most was support.

As a caregiver and patient, I understand the emotional moments that can happen at the point of care.  As a healthcare marketer, I also understand the value of this space as a channel, and I’ve been fortunate to see it evolve over the tenure of my career.  Today, pharmaceutical brands and healthcare and lifestyle advocacy groups push messages at these point of care (POC) settings, hoping to educate patients about therapy options.

But POC as a marketing channel needs to be treated both similarly and differently from other marketing strategies if a marketer wants to appear relevant and connect in a meaningful and useful way.  The reality of distracted, concerned patients and worried caregivers means brands that want to engage with patients at the POC need to approach them with greater empathy and understanding, with content that resonates emotionally and rationally with this audience.

But what makes POC unique anyway?

The POC channel supports the patient at critical moments of their health journey. 

From acute illness to more chronic or prolonged conditions, important milestones of the health journey happen at the point of care.  Through a recent survey collaboration between Outcome Health and Nielsen, we learned that the wait times within the rooms of point of care are substantial, with patients waiting on average up to 38 minutes in the waiting room and then another 36 minutes in the exam room.  These wait times represent a huge opportunity to communicate with and impact patients, caregivers and physicians all at the same time — essentially turning a “captive” audience into a “captivated” and educated one.

Inventory is finite if POC content is done right.

POC differs from other digital ad channels because inventory is specific, targeted, and limited.  Think about it.  There are only so many rheumatologists in the United States, and there are only so many brands that treat or support patients who see a rheumatologist.  Factor in the attention span of the average person today, include the other places they can get content in the doctor’s office (like magazines, posters, pamphlets), as well as the fact that we are all walking around with smart devices that can deliver content that we ask it anytime, anywhere, and you realize how critical it is to provide content that is aligned with why a patient may be in that rheumatologist’s office in the first place.  This content (continuing with the Rheumatology example) could include anything from signs and symptoms of Lupus, to managing rheumatoid arthritis through diet, exercise, and lifestyle choices, to understanding how to best support a loved one who has osteoporosis — this is just the short list of potential content that may be pertinent to patients or caregivers seeing rheumatologists.  The funnel of dependencies leading to the opportunity to message a patient who is seeing their provider for an ailment and being able to support that patient on their journey means that there are finite opportunities like this, which makes messaging at the POC more sophisticated and challenging in the same breath.

The point of care is the final touchpoint of the marketing message. 

On many occasions, I’ve heard pharma marketers muse, “What if we could hold hands with patients when they have those important conversations with their provider?”  In the POC channel, you can.  Unlike TV, print, and digital that serve to create awareness for new therapies or reach patients before they reach the office, POC holds their hand in the office, moments before and during time with their physician.

POC drives patients to take action.

Messaging at the POC has been proven to impact and shift patient behaviors.  In a study by ZS Associates, patient behavior was measured after being exposed to digital signage at their provider’s office.  Of those exposed, 84% were more likely to ask their doctor about an ad they saw, 68% asked their doctor for a specific medication, 31% were more likely to fill their prescription, and 34% were more likely to take their medication as prescribed.

Where does POC marketing fit in alongside DTC and traditional channels?  The point of care should serve as a complement to your brand’s other marketing and sales efforts, with specificity and context for patients waiting to see their doctors, moving them forward towards treatment.  POC marketing can be leveraged as a digital tool, as a TV alternative, and even as a patient engagement solution to share benefits like co-pay assistance programs.  Because your ad is now in the room with patients and their physician, messaging must be tailored for this space; simply dropping your TV spot onto an exam room screen isn’t likely to cut it with patients who are waiting to see their doctor.  Advertisers should welcome the opportunity to become more deeply integrated into the patient-doctor experience and develop content that can be integrated into the clinical setting.

Because there’s such a range of experiences (and emotions) that happen at POC, it’s important that any content (sponsored or not) intended for this space is sensitive to that.  You can’t create effective content without considering the patient’s mindset.  Content must be curated and contextualized for each touchpoint of the point of care experience.  Videos should be relevant for that clinic’s specialty and help to facilitate physician-patient conversations.  When you’re at the doctor’s office, sitting in a gown (or in the passenger seat supporting an ill parent), wouldn’t you prefer fact-based, custom information that’s helpful and supportive of the conversation you’re about to have with your physician?

On the other hand, there are also moments of the health journey when patients don’t want to dig further into their treatment plan or condition and prefer access to content that simply entertains or distracts them.  We as marketers need to take into account the range of experiences that happen within the point of care and provide content that aligns with and supports these unique moments.

The most important thing to remember is that patient needs vary within the POC environment, and you can’t take a “one size fits all” approach with your messages within each channel.  The diversity of needs and experiences is prompting the space to evolve beyond just awareness.  New trends within the space include patient education, adherence, support group registration, and more.  The channel is poised for continued growth and we, as healthcare marketers, need to continue to innovate so that everyone entering the POC space can feel informed, inspired, entertained, and renewed during the most critical moments of care.

 

Matt McNally

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September 25, 2019 0

Sponsored Content

I know the pain of losing a loved one to opioid addiction. My family continues to grieve the loss of an incredible young man who, after an awful car accident, began a decade-long battle against addiction to his prescribed painkillers. Three years ago, he lost that battle.

Countless other families have experienced similar losses due to our nationwide opioid crisis. According to the Department of Health and Human Services (HHS), more than 130 people die from opioid overdoses every day. It’s a devastating epidemic that impacts people of any age and from all walks of life.

To help combat opioid addiction, PatientPoint® collaborated with Shatterproof – a nonprofit organization focused on ending the stigma of addiction and improving addiction treatment – to create a powerful opioid education program at the point of care. It launched nationwide in October 2017 across the digital PatientPoint engagement platform, reaching an estimated 15 million patients and caregivers each month in waiting rooms, exam rooms, and in the physician back office. The content is designed to increase the awareness of opioid addiction and encourage doctor-patient discussions about other treatment options.

And the best news is, it is working and we are making a difference. An independent analysis by Symphony Health revealed that each of the 20,793 physicians who had the education program in their practices distributed 142 fewer opioid prescriptions over the eight-month study period than closely matched, non-participating physicians. That adds up to nearly 3 million fewer pills prescribed. If that doesn’t prove the effectiveness of messaging to physicians and patients at the point of care, I don’t know what will.

I often talk about the power of messaging at the point of care, but the results of PatientPoint-Shatterproof campaign really drive it home. I encourage you to read the case study for more details about this fantastic campaign and its impact on the fight against opioid addiction. You can find here.

Linda Ruschau

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July 26, 2019 0

 

I sat down with Charlie Greenberg, a respected healthcare industry veteran and an expert in point-of-care (POC) marketing, to discuss current trends in healthcare marketing. It’s a topic Charlie knows well, having worked for more than 30 years in the industry with giants like Saatchi & Saatchi, Wyeth, and Merck. Charlie currently serves as a media and marketing consultant, so he spends a great deal of time thinking about the ways brands can improve their reach and maximize their return on investment.

Q: How has healthcare marketing changed during your time in the industry?

A: Market research on patient population profiles and their attitudes toward treatment options has become increasingly more sophisticated. We no longer focus only on demographics and affinity interests, but now incorporate attitudes toward treatment options, healthcare status, and relevant multicultural distinctions within an overall target universe.

Paid media in the marketing mix has embraced this more sophisticated market research by employing greater targeted media tactics. This is not only a function of the evolution of digital media but greater opportunities within the point-of-care arena and the availability to refine how mass media can reach a target audience.

Q: What’s the biggest thing healthcare marketers aren’t doing that they should, or that they should be doing more of?

A: Good marketers set themselves apart from the pack when they are willing to make bold decisions and address the marketplace by shaping customer thinking. Adopting a mindset of “test and learn” around how marketing dollars are spent needs to be better embraced. Short-term thinking often leads to stagnation and missed opportunities.

Secondly, marketers should also be investing more in communication which has the goal of building health literacy. This will not only support the ability to shape consumer thinking, but health literacy campaigns have been shown to lift the efforts of branded commercial campaigns when the two messages are running together.

Q: What effect can point of care (POC) have on the overall media plan? What benefits can brand managers and media planners realize from adding this channel to their mix?

A: Adding POC to a plan will increase the ability to laser target reaching prospects and patients. This complements the efforts of other tactics within the plan. Secondly, POC offers a guaranteed ROI, which also enriches the promotional effectiveness of the overall marketing plan.

Q: Why is healthcare personal to you?

A: It is rewarding to be able to feel a sense of achievement from launching that new snack food item on shelf, introducing a new car model or driving purchases of yet another shade of red lipstick. However, healthcare marketing offers a benefit of knowing that you are helping people understand health conditions and offering treatment to increase their quality of life.

Q: What’s your favorite thing about being a New Yorker?

A:  New York City offers real mobility since it is one of few places in America where you have the option to walk to get to your destination rather than being tied to your car.

Linda Ruschau

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April 26, 2019 0

Sponsored Content

A varied media mix that includes effective print tactics, is fundamental to unlock the full value of a Point of Care sponsorship program.

Like numerous other media environments in recent years, the Point of Care landscape has become increasingly focused on digital platforms.  From televisions to touchscreens, providers have created a wealth of technology for marketers to engage patients and consumers.  Yet most doctors’ offices continue to welcome a variety of magazines, posters, wallboards, and brochures throughout their locations.  By capitalizing on these diverse engagement tools, marketers can unlock significant consumer action.  In fact, Nielsen cites that a media mix that incorporates print and digital assets can drive as much as 30% higher ROI[1] – meaning that your campaign can play a vital role in the patient journey. With the ability to “own” platforms that are more transportable and offer distinct take-away value, brands can diversify their POC messaging through print materials, all while gaining 100% share-of-voice.

Reinforcing your brand message with a dynamic media mix

Since its origin, the Point of Care industry has worked diligently to develop its venues to be turn-key marketing environments that offer valuable information to a wide array of consumers and caregivers.  Its channels prioritize efficiency for advertisers by eliminating costly, time-consuming creative versioning through standardized adverting units.  This uniform approach also allows a simplified, multi-channel strategy to engage consumers through multiple touchpoints with only a few required assets.  Waiting room video messaging can be easily reinforced through condition guide sponsorship placed in examination rooms.  Examination room tablet interstitials can boost click-through rates by introducing the brand through a waiting room wallboard before the doctor discussion.  In each case, the brand can boost exposure with static tools by leveraging traditional magazine advertising spreads.  These reinforced campaigns have proven to be incredibly powerful with consumers.  In recent Mesmerize programs, sponsorships that utilized a waiting room wallboard and a hyper-targeted mobile ad unit drove three times greater ROI than standard print programs alone.  Furthermore, those programs prompted nearly five times the national click-through average for mobile banners[2].  Indeed, brand reinforcement across multiple platforms offers a powerful boost, especially for targeted campaigns – and all with cost and time efficiency.

Target your customers by venue and by platform

Targeting remains the consistent recipe for success with all POC tactics – and where the true value of marketing lies in this channel.  Segmentation through client-supplied list matching, medical specialty selection, or audience demographics can curate venue lists to ensure maximum exposure to the appropriate audience.  Since the start of Point of Care promotion, marketers have created media mix strategies that utilized the space for its hypertargeting abilities.  Now that the industry has matured, it is imperative that brands utilize a varied approach within their POC plans as well.

As CMI recently noted, the strategic benefits from print-based tactics complement and reinforce digital messaging and significantly impact consumer engagement.  Furthermore, by understanding the specific audience target, marketers can segment a venue to reach various factions through the tactics they relate to best.  For example, physicians who are accustomed to reading printed materials will likely respond more strongly to a customized guide, while digital tactics in the waiting room can occupy time for patients anticipating their physician visit.[3]

Digital media has a solidified place in healthcare marketing and Point of Care remains a powerful proving ground for those tactics.  However, by adopting a diversified strategy that employs a variety of tools – including static media – marketers can optimize their POC spending to ensure maximum engagement, all with superior targeting and access that has offered repeated success in this channel.

 

References

[1] Tsvetkov, Tsventan. (2018, August 8). “Perspectives: The Easier Way To Drive Higher Marketing ROI,” Retrieved from https://www.nielsen.com/us/en/insights/news/2017/perspectives-the-easier-way-to-drive-higher-marketing-roi.html

[2] Mesmerize, (2019, January 21). “Consumer Packaged Goods 2019 Mobile Case Study”.

[3] Marvel, Darcy, Cooper. (2019, 14 March). “The Importance of Print Media in Today’s NPP Channel Mix,” Retrieved from https://www.cmimedia.com/insights/povs/the-importance-of-print-media-in-todays-npp-channel-mix

 

Craig Mait

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September 5, 2018 0

The Senate recently passed an amendment to a larger health care bill that requires drug prices be disclosed in DTC Ads. The Durbin amendment was adopted with bipartisan support. It really just gives HHS a million dollars to study a way to require the disclosure. What is clear is this idea has strong support from President Trump, Congress, HHS Secretary Azar, and the American Medical Association. So, like it or not, the drug advertisers may be forced to add some price information to ads.

Bob Ehrlich
“Drug makers may be forced to add… price information to ads.”
-Bob Ehrlich

On the surface, that list price disclosure seems reasonable. We see MSRP in car ads, so we know whether it is a premium or economy car. Not that we don’t know that already but it is not unreasonable. For cars, we know we will likely pay somewhat less than MSRP but we do know the range a Mercedes will cost us. Congress thinks consumers deserve to know the price of drugs they see advertised. To Congress that seems like it would help consumers decide if this advertised drug should be considered.

Drug pricing is not like car pricing. Consumers pay much less than the list price and sometimes pay nothing for the $50000 drug for cancer. Admittedly, drug pricing is a Byzantine process that confounds most of us. Each insurance company, PBM, and government payer negotiates prices. Each consumer depending on their insurance pays a different price no way near the list price. Sometimes the consumer would pay out of pocket more for their OTC cough medicine than the $50000 cancer drug.

So how should drug companies disclose drug prices? If the list price is not anywhere near what consumers pay, then how does disclosing it help them? It does not. It helps insurance companies in making DTC more difficult for drug companies to execute. The knowledgeable legislators know that if they force drug makers to talk about price that may discourage them from doing DTC Ads for expensive drugs. Drug makers advertising the $100000 cancer drug may decide that DTC is not worth trying to explain the complexities of drug pricing or face the barrage of criticism for having a sticker shock price.

I think this is the real reason for this amendment. Embarrassing drug companies they hope will put a chill on DTC for cancer drugs, biologics for arthritis, Crohn’s, and other new premium drugs. Of course, all drugs will face a guidance on how pricing needs to be discussed. Somehow FDA will make disclosure a time consuming step in a DTC ad. That will add 10-15 seconds to the ad and may make them difficult to execute. Their hope is to get drug companies to stop doing DTC.

So the good news is it will take FDA a while to study and draft guidance for disclosing price. This lag may allow the powerful advertising lobby to show how impractical this disclosure requirement will be. My guess is we may have some compromise that speaks in terms of ranges of price. That is something like “most patients will pay much less than the price listed depending on your insurance coverage.” Or, drug makers may be able to say “the average price paid by consumers is x.”

It may be illegal to require drug makers to disclose price under commercial free speech grounds. I am sure the advertising lobby will argue this inhibits commercial speech. They would have a strong case based on precedent.

My advice to the agencies is to be ready to deal with adding some price statement but I am sure it will be a few years before FDA can figure out how best to do this. They research everything they do and that will take a long time to study. DTC price disclosure sounds great but is just a bad idea that will not help patients.

Bob Ehrlich