Richard Meyer Drug Prices, in the news

DTC advertised drugs more expensive

Those ubiquitous drug ads are selling cures to ills we'll probably never have.

Studies have shown that direct-to-consumer (DTC) advertised drugs are more expensive than non-advertised drugs. For example, a study by the Kaiser Family Foundation found that DTC-advertised drugs cost an average of $3.70 more per prescription than non-advertised drugs.

There are a few reasons why DTC-advertised drugs may be more expensive. First, drug manufacturers spend a lot of money on DTC advertising, which is often passed on to consumers through higher prices. Second, DTC advertising can increase demand for advertised drugs and drive up prices.

It’s important to note that not all DTC-advertised drugs are more expensive than non-advertised drugs. Some DTC-advertised drugs are priced lower than their non-advertised counterparts. Additionally, the cost of a drug is not always the best indicator of its effectiveness. Many factors can affect the cost of a drug, including its patent status, manufacturing process, and distribution channels.

Ultimately, the decision of whether or not to take a DTC-advertised drug is a personal one. Patients should weigh the potential benefits and risks of the drug and its cost before making a decision.

Here are some additional studies that have found a link between DTC advertising and higher drug prices:

  • A study by the Tufts Center for the Study of Drug Development found that DTC-advertised drugs cost an average of 18% more than non-advertised drugs.
  • A Harvard School of Public Health study found that DTC advertising was associated with a 10% increase in drug prices.
  • A study by the American Medical Association found that DTC advertising was associated with a 20% increase in drug prices for brand-name drugs.

So is there a link? Yes and no.

DTC-advertised drugs tend to appeal to a broader audience than non-advertised drugs. Also, some non-advertised drugs may have been on the market for a long time and replaced by new products.

DTC marketers will have to justify every dollar they spend. This, in turn, is going to lead to less innovation and trying new ways to reach consumers.