The rapid increase in DTC advertising for prescription drugs has focused attention on its role in drug spending and prescribing. A new study by researchers at Harvard University and the Massachusetts Institute of Technology looks at the effect of direct-to-consumer (DTC) advertising on spending for prescription drugs. The study found that, on average, a 10% increase in DTC advertising of drugs within a therapeutic drug class resulted in a 1% increase in sales of the drugs in that class.

Applying this result to the 25 largest drug classes in 2000, the study found that every $1 the pharmaceutical industry spent on DTC advertising in that year yielded an additional $4.20 in drug sales. DTC advertising was responsible for 12% of the increase in prescription drugs sales, or an additional $2.6 billion, in 2000. DTC advertising did not appear to affect the relative market share of individual d 6084 – Impact-of-Direct-to-Consumer-Advertising-on-Prescription-Drug-Spending-Summary-of-Findingsrugs within their drug class.

KFF Headquarters: 185 Berry St., Suite 2000, San Francisco, CA 94107 | Phone 650-854-9400
Washington Offices and Barbara Jordan Conference Center: 1330 G Street, NW, Washington, DC 20005 | Phone 202-347-5270

www.kff.org | Email Alerts: kff.org/email | facebook.com/KFF | twitter.com/kff

The independent source for health policy research, polling, and news, KFF is a nonprofit organization based in San Francisco, California.