Now that you’ve learned about why branded drugs are expensive and how that’s supposed to be only temporary, thanks to the built-in price control of genericization, let’s talk about some other misconceptions about high drug prices.
DTC Advertising
First we’ll talk about advertising, because this comes up a lot. We have a hunch why.
Pharma ads are … Annoying. From the jingles that make for the most frustrating ear worms, to the rapid-fire deadpan spouting of side-effects, they must be among the most-mocked ads in our zeitgeist. (Send us your favorite fake drug ads — we’re partial to SNL’s “Handi-off](https://www.nbc.com/saturday-night-live/video/handioff/2859794).”)
They’re also a predominantly American phenomenon — only New Zealand, among all other countries, has pharma ads anything like what we have in the U.S. So why do we allow them? Don’t they contribute to high drug prices? (Spoiler alert: not really.)
First, here are some of the actual positive benefits of Direct-to-Consumer (DTC) ads:
1. Increased Awareness/Education:
DTC ads can educate consumers about health conditions and treatments, prompting them to seek medical advice and possibly leading to early diagnosis and treatment. They provide information on drug benefits, risks, and side effects, helping patients make informed decisions.
However, only physicians can prescribe medications, and insurance companies often need to authorize them. While critics say DTC ads create unnecessary demand, individuals can’t buy medications just based on ads. The FDA regulates these ads closely.