PhRMA Statement on Direct-to-Consumer Advertising

Washington, D.C. (July 20, 2006) — PhRMA Senior Vice President Ken Johnson issued the following statement on the educational value of direct-to-consumer (DTC) advertising of prescription medicines:

“A ban on the advertising of prescription medicines would hurt patients’ ability to learn about new medicines in a timely fashion and does not advance quality healthcare. The goal of DTC advertising is to provide doctors and patients with accurate, educational information about diseases and their treatment options. It empowers patients, increasing people's awareness of diseases and available treatments.

“In fact, studies show DTC advertising often brings patients into their doctors’ offices and helps start important doctor-patient conversations about health that might otherwise not have happened. Informing physicians and patients about available treatments through television, radio or print advertising can help Americans make better decisions about their health care so that they can lead healthier, longer lives.

“Last July, PhRMA and its member companies announced voluntary Guiding Principles on Direct to Consumer Advertisements of Prescription Medicines to further enhance their inherent educational value to patients. These principles go beyond existing regulatory requirements in a number of ways. FDA officials and others have indicated in public statements that advertisements are more educational and that companies are submitting the ads to the FDA for prior review in accordance with the principles. That is true progress.

“It is also important to note that last year, PhRMA member companies gave away more in free or nearly free medications through their patient assistance programs than they spent on television advertising. Thirty-five million prescriptions worth an estimated $5.1 billion were given to millions of people with limited incomes.”

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The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $39.4 billion in 2005 in discovering and developing new medicines. Industry wide research and investment reached a record $51.3 billion in 2005.