Direct to Consumer (DTC) Advertising in Pharmaceuticals

Current and Future Market Outlook, Regulatory Landscape and Case Studies

Product Code GBI00001
Publication Date December 2009
Publisher GBI Research
Product Type Report
Pages 71
ISBN Number not applicable
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Direct to Consumer (DTC) Advertising in Pharmaceuticals

Current and Future Market Outlook, Regulatory Landscape and Case Studies

GBI Research, the leading business intelligence provider, has released its latest research, "Direct to Consumer (DTC) Advertising in Pharmaceuticals - Current and Future Market Outlook, Regulatory Landscape and Case Studies." The research provides key data, information and analysis of the major issues affecting the stakeholders of the direct to consumer (DTC) advertising market in the US and Europe. It discusses the major changes that have been observed after the relaxation of rules over DTC advertising by the FDA in 1997. The report also covers the issues specific to the European market (where branded DTC advertising is banned). The report provides a comprehensive view of some of the best examples of DTC advertising along with analysis covering the reasons for such success. The report also provides a detailed analysis of failed examples along with the most important lessons. It also provides an insight into government regulations in the US and Europe covering DTC advertisements and their implications for the marketing strategies of the pharmaceutical companies. The study provides a detailed explanation of some of the major reasons behind recent developments in the pharmaceutical DTC advertising landscape. At the end, the report touches upon some of the major trends that are likely to shape the future landscape for the DTC advertising market in the US and Europe.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research's team of industry experts.

Scope

The scope of this report includes:

  • Identification and analysis of major issues that are affecting the DTC advertising marketplace in the US and Europe
  • Case studies of DTC advertising strategies of Pfizer, AstraZeneca, Merck and Sanofi-Aventis and so on
  • Estimation and analysis of potential impact of the issues on the key stakeholders affected by the DTC advertisement market developments
  • Analysis of key government regulations in the US and Europe affecting the DTC advertising market
  • Future trends that will shape the DTC advertising market in the US and Europe

Reasons to buy

The report will enhance your decision making and will enable you to:

  • Develop effective business strategies to tackle the impact of major issues to the key stakeholders in the DTC advertising market
  • Understand the DTC advertising strategies that succeeded and failed for the major drugs of key pharmaceutical players
  • Ensure success through more effective marketing strategies for the drugs that are to be launched or already in the market
  • Identify and exploit the factors that could help to maximize returns on drugs through better advertising
  • Optimize your advertising impact through identification of the most suitable medium for your drug
  • Develop understanding of the regulatory attitude and hurdles for DTC advertising in the geographies covered in the report

Contents

  • 1 Table of Contents
    • 1.1 List of Tables
    • 1.2 List of Figures
  • 2 Introduction
    • 2.1 GBI Research Report Guidance
  • 3 DTC Advertising in the US - Double-edge Sword for Both, Patients and Pharma Companies
    • 3.1 FDA Rule Triggering the Rise
    • 3.2 Media for DTC Advertisements
      • 3.2.1 Television
      • 3.2.2 Print
      • 3.2.3 Internet
    • 3.3 Budget Allocation for DTC Advertising - Decision Parameters
      • 3.3.1 Nature of the Disease
      • 3.3.2 Prevalence of the Disease
      • 3.3.3 Patient Preferences for Advertising Channels
      • 3.3.4 Target Population
      • 3.3.5 Degree of Market Competition
      • 3.3.6 Future Prospects for Brand
      • 3.3.7 Future Prospects for the Market
    • 3.4 Benefits of DTC Advertising
      • 3.4.1 Adds to the Bottom-line of the Pharmaceutical Companies
      • 3.4.2 Increases Disease Awareness and Treatment Rate
      • 3.4.3 Increases Patient Compliance
    • 3.5 Successful DTC Advertising Campaigns
      • 3.5.1 Pfizer's Lyrica
      • 3.5.2 AstraZeneca's Symbicort
    • 3.6 Concerns with DTC Advertising
      • 3.6.1 DTC Expenditure Outpacing the R&D Expenditure
      • 3.6.2 Misleading Advertisements
      • 3.6.3 Consumer Safety
      • 3.6.4 Driving Demand for Expensive and Inappropriate Drugs
    • 3.7 Failed Campaigns
      • 3.7.1 Merck's Vioxx
      • 3.7.2 Merck's Gardasil
      • 3.7.3 Sanofi-Aventis' Ambien
      • 3.7.4 Pfizer's Lipitor
    • 3.8 Impact of DTC Advertising
      • 3.8.1 Change in Patient-Physician Relationship
      • 3.8.2 Increased Patient Engagement in the Treatment
    • 3.9 Conclusion
  • 4 DTC Advertisements Today - Adverse Economic and Regulatory Scenario Creates a Discouraging Market
    • 4.1 DTC Advertising Expenditure on a Decline
      • 4.1.1 Lack of DTC-Worthy Blockbuster Drugs
      • 4.1.2 Misleading Advertisements and False Claims - DTC under Fire from the US Congress
      • 4.1.3 Shift to More Cost-Effective Media
      • 4.1.4 Damage to the Image of the Pharmaceutical Companies
    • 4.2 Change in the Role of Television - Complementing Internet based Advertising
    • 4.3 Internet as an Emerging Media - Encouraging Integrated Advertising Strategies
    • 4.4 Conclusion
  • 5 DTC Advertising in Europe - Possibility for Branded DTC Advertising Penetration
    • 5.1 Sandoz (1996) - Set the Stage
    • 5.2 DTC in Europe - Informative and NOT Promotional
      • 5.2.1 Pfizer's Viagra
      • 5.2.2 Pharmacia's Detrusitol/Detrol
      • 5.2.3 Roche's Xenical
    • 5.3 Internet - A Key Tool in Absence of Traditional DTC
      • 5.3.1 Internet Based Advertising Controversy - eBMJ (British Medical Journal)
    • 5.4 EU Regulations for DTC Advertising
      • 5.4.1 High Level Pharmaceutical Forum - A Move to Push Branded DTC advertising in Europe
      • 5.4.2 EC Proposal on Restricted Branded Advertising - Possible Entry Point for DTC Advertising Penetration in the Continent
    • 5.5 Conclusion
  • 6 Future of DTC Advertising - Integrated and Personalized Advertising to be the Key to Success
    • 6.1 Future DTC Advertising Expenditure - Regulatory and Political Landscape will Determine the Growth
    • 6.2 DTP (Direct-to-Patient) Advertising - Engaging Instead of Promoting
    • 6.3 Move towards Social Media
      • 6.3.1 Collaborating with Patient Groups - An Opportunity to Increase Patient Compliance
      • 6.3.2 Dedicated Video Sites
    • 6.4 Measuring Effectiveness of DTC Advertising
      • 6.4.1 Future Challenges in Measuring DTC Advertising Effectiveness - Different Media would Increase Complexities
    • 6.5 Regulations for DTC Advertising on Digital Media - Search Engine, First Target
      • 6.5.1 MTV's Banner Ad of Barr's Plan B - Brought Online Advertising to FDA Sight
      • 6.5.2 FDA's Untitled Warning Letters to Pharmaceutical Companies on Search Engine Advertisements
    • 6.6 Conclusion
  • 7 Key Takeaway
  • 8 Appendix
    • 8.1 Definitions
    • 8.2 List of Abbreviations
    • 8.3 Sources
    • 8.4 Methodology
      • 8.4.1 Secondary Sources
      • 8.4.2 In-house Analysis
      • 8.4.3 Expert Panel Validation
    • 8.5 Contact Us
    • 8.6 Disclaimer
  • 1.1 List of Tables
    • Table 1: Lyrica Worldwide Sales, $m, 2004-2008
    • Table 2: Symbicort Worldwide Sales, $m, 2001-2008
    • Table 3: Merck's DTC Advertisement Spend on Vioxx, $m, 2000-2004
    • Table 4: Gardasil Worldwide Sales, $m, 2006-2008
    • Table 5: Lipitor Worldwide Sales, $m, 1999-2008
    • Table 6: Number and Value of the Current Blockbuster Drugs going Off-Patent by 2014
    • Table 7: Differences in the US and Europe Healthcare System in Context of DTC Advertising
    • Table 8: Viagra Worldwide Sales, $m, 1998-2008
    • Table 9: Detrusitol/Detrol Worldwide Sales, $m, 2003-2008
    • Table 10: Xenical Worldwide Sales, $m, 1999-2008
    • Table 11: Breakdown of Late-Stage Pipeline by Type of Compounds for 20 Major Pharma Companies
  • 1.2 List of Figures
    • Figure 1: FDA Rules For DTC Advertising Before and After 1997
    • Figure 2: Total Promotional Spending on Prescription Drugs, $bn, 1996-2004
    • Figure 3: Percentage Change in Selected National Health Expenditures, 1980-2001
    • Figure 4: Breakdown by Media of the Total Pharmaceutical DTC Advertising Spend in the US, 2008, Total = $4.3bn
    • Figure 5: Factors Determining DTC Budget Allocation to Brands and Selection of Marketing Mix
    • Figure 6: Lyrica Worldwide Sales, $m, 2004-2008
    • Figure 7: AstraZeneca on Moving Digital for DTC Marketing
    • Figure 8: Symbicort Worldwide Sales, $m, 2001-2008
    • Figure 9: Comparison of Growth in Promotional Expenditure v/s R&D Expenditure, %, 1998-2004
    • Figure 10: John Dingell, Chairman, Committee on Energy and Commerce, on His Concern over Misleading DTC Advertisements
    • Figure 11: Suzanne Hill, Scientist at WHO, on Unprecedented Increase in Healthcare Costs in the US due to DTC Advertising
    • Figure 12: Merck's DTC Advertising Spend on Vioxx, $m, 2000-2004
    • Figure 13: FDA Warning to Merck on Vioxx
    • Figure 14: Gardasil Worldwide Sales, $m, 2006-2008
    • Figure 15: Californian Democrat Henry Waxman on FDA's Laxity over DTC Advertisements
    • Figure 16: Lipitor Worldwide Sales, $m, 1999-2008
    • Figure 17: Arguments FOR and AGAINST DTC Advertising in the US
    • Figure 18: DTC Advertising Spend, $bn, 1996-2008
    • Figure 19: Number and Value in 2008 of the Current Blockbuster Drugs going Off-Patent by 2014
    • Figure 20: FDA Guidelines on DTC Advertising, May 2009
    • Figure 21: Ken Johnson, SVP PhRMA, on Defending the DTC Advertisements
    • Figure 22: Robert Perry on Revoking of Avodart Commercial
    • Figure 23: FDA on Presentation of the Product Information in Advertisements
    • Figure 24: CPM (Cost-per-Thousand) for Different Advertising Media, the US, US$, 2008
    • Figure 25: Alexander Capron, Professor at University of Southern California, on Criticism of Pharma Companies for their DTC Tactics
    • Figure 26: William Burns, from Roche, on Reputation Damage to Pharma Companies due to DTC Advertising
    • Figure 27: Changing Role of Television
    • Figure 28: Difference Between the US DTC Strategy and Europe DTC Strategy
    • Figure 29: Viagra Worldwide Sales, $m, 1998-2008
    • Figure 30: Detrusitol/Detrol Worldwide Sales, $m, 2003-2008
    • Figure 31: Xenical Worldwide Sales, $m, 1999-2008
    • Figure 32: Sheila McKechnie on BMJ's Decision to Allow Branded Advertising on its Website, 1999
    • Figure 33: Nathalie Thijssens, Digital Marketing Manager, Janssen, on the objective of Psychiatry24X7
    • Figure 34: Gunter Verheugen, VP - European Commission, on Providing Bigger Role to Pharmaceutical Industry in Information Provision to Consumers
    • Figure 35: Royal Pharmaceutical Society of Great Britain on EU Proposal to Allow Restricted Branded DTC Advertising
    • Figure 36: Direct-to-Customer Advertising v/s Direct-to-Patient Advertising
    • Figure 37: Framework to Measure the Effectiveness of a DTC Campaign
    • Figure 38: Future Trends - DTC Advertising
    • Figure 39: Integrated DTC Advertising Strategies - A New Paradigm for Pharmaceutical Industry in the Future