1) This case provides background on DTC marketing for prescription drugs and also suggests that the use of this type of marketing is somewhat controversial. What ethical issues can you identify that might be of concern to patients, healthcare professionals, and pharmaceutical companies with regard to DTC marketing? Be specific.
The type of marketing used by pharmaceutical companies is a pull marketing strategy. In the past, they had to rely on their channel members which are healthcare professionals to reach consumers. As the case has indicated they now communicate directly with their target market.
• This practice can be unethical toward the patients because the amount of money spent on promotion by pharmaceutical companies to advertise
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What are some of the positive and/or negative consequences of the use of DTC marketing by pharmaceutical companies? Who is impacted by these consequences?
The use of DTC marketing by pharmaceutical companies has both positive and negative consequences for the parties concerned in this issues.
Positive consequences:
• It is an advantage for patients because, before advertising by pharmaceutical companies, patients used to follow blindly what their doctors asked them to take as medication without really understanding it or knowing all the options available. Now, they are more informed about medications.
• It makes the public more involve in their decisions about their health because they have more information in their hands and can make a choice.
• It allows pharmaceutical companies to create awareness of their products among patients and healthcare professional, increase sales, create consumer loyalty and fight against the threat of generic products.
• It allows pharmaceutical companies to have a direct contact with consumers and communicate directly with their target market without intermediaries.
• It can also be an advantage for healthcare professionals because their patients are more inform and aware of the medications available on the
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• Patients put a pressure on doctors with regard to coupons, they ask doctors to prescribe the drugs they have a coupon for in order to save money.
2. In your opinion, should DTC by pharmaceutical companies be permitted in the United States? Why or why not?
In my opinion, DTC by pharmaceutical companies should not be permitted in the United States. The reason is that human life is sacred and people health is really important. Therefore, the field of healthcare should be highly regulated and taken very seriously. DTC Advertising has many advantages but can also be very damageable, people can misinterpret information, and pharmaceutical companies can have unethical behaviors to make more profit. So, healthcare specialist should be the intermediary between pharmaceutical companies and the public.
3. Are you aware of any professional code of conduct that might be relevant in this situation? If so, discuss how this code is
In order to sustain the market share in this highly competitive industry, the pharmacies have to establish and maintain strong working relationships with PBMs that have power to divest particular clients from a pharmacy by denying reimbursement privileges to their customers. Buyer Power Strong It is not hard to obtain the same drugs from different sources, so the customer loyalty is virtually non-existent and the pharmacies have to try extremely hard to sustain their consumer base. Threats of substitutes Weak There are very few alternatives to drugs. Alternatives are practically limited to traditional medicine.
In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the counter, or OTC, drugs. In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year . This marketing, usually in the form of advert...
DTC advertisements aim to persuade that their possibly less effective drugs work better than other drugs rather than to inform consumers of correct information about drugs. The reason that pharmaceutical companies abuse the power of DTC advertising is because the pharmaceutical industry does not have a strong ethical code for advertising; their sales are so obsessed with profits. To solve this problem, policy makers should prohibit indiscreet DTC advertisements on air and fund more informative services about new drugs so that patients could make clever
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
...pecially with the use of DTC advertising, to such a wide range of afflictions greatly increased their consumer base, but one of them proved to be deadly. In 1999, four years after Lilly sent study results to the U.S. Food and Drug Administration showing Zyprexa didn’t alleviate dementia symptoms in older patients, it began marketing the drug to those very people, according to documents unsealed in insurer suits against the company for overpayment.(Applbaum, 248). Soon after it began to be used in those suffering from dementia, there were studies produces that showed an increase in death rate among elderly patients taking Zyprexa. In January of 2009, Eli Lilly and Company, who produced the drug, ended up settling the lawsuit and agreed to pay $1.415 billion which was one of the biggest corporate settlements in the history of pharmaceutical companies (Applbaum, 237).
The percentages of the two surveys prove that a greater percentage of doctors believe that prescription drug ads misinform patients. These ads misinform patients, encourage over-medication, and pressure doctors and medical providers. The counter side states that prescription drug ads educate patients, encourage the correct usage of drugs, and cause patients to ask their doctors about possible treatments. Both sides have examples and evidence, but the cons of prescription drug ads are stronger.
Why do consumers purchase specific drugs for various ailments, sicknesses or diseases they might have? Why do physicians prescribe certain drugs over competitive drugs that may be available to the public? Why is it that most of us can easily name specific drugs that fit the many ailments of today’s society? On the surface the answer might be as simple as good TV advertising or radio commercials or even internet adds. The truth of matter is the major pharmaceutical manufacturers own the patents on these drugs and this gives them all of the marketing budget and muscle they need to promote the drug and control the pricing. The incentives for larger pharmaceutical companies are very enticing and as a result, they don’t mind spending the time in clinical trials and patent courts to get their drugs approved. Some will even get patents on the process by which the drug is manufactured, ensuring that no competitor can steal the drug or the process. This protects their large financial investment and nearly guarantees a large return for their investors. Many consumer rights groups claim this is nothing more than legalizing monopolies for the biggest manufacturers.
Government factors into the equation of the argument. Critics of the drug industry say that there is not enough regulation, while supporters of the pharmaceutical companies argue that there is too much regulation and that that is one...
Kaphingst, K. A. (2004). A Content Analysis of Direct-to-ConsumerTelevision Prescription Drug Advertisements. Journal of Health Communication,Volume 9: , 515–528,.
The United States spends more per capita on health care than any other country, with the percentage of gross domestic product dedicated to health care doubling from 9% in 1980 to 18% in 2011(Kesselheim,). One of the contributors to health care inflation is prescription drugs. Pharmaceuticals account for about 10% of total health care costs, spending on pharmaceuticals is poised to swell in upcoming years as a result of the increasing prices of complex specialty medicines (Kesselheim). Name brand drugs are going to have to be set at higher prices, in order for pharmaceutical companies to receive a profit. If the patient has full coverage on a medication, there is a greater chance that medication will be taken, although it may not be
Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 US. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307). This fact validates the incentive pharmaceutical companies have to get a patent and acquire more power. Pfizer encourages R&D because of the incentives and a want to obtain patents to receive more profit. Pfizer has to promote itself to be successful, creating a good brand image that consumers will trust. If the company can advertise successfully, more consumers will purc...
...d has cut down the illegal distribution of prescription drugs. It cuts down on medical costs for the patient by allowing the physician to view what insurance coverage the patient carries for certain medications and. providing lists of similar generic drugs. E-prescribing is just one part of U.S. government’s goal to gradually adopting standards facilitating the shift to all electronic medical records for citizens. Although it has only been available for a short time, electronic-prescribing has already made an impressively large impact on the medical field.
both the benefit and risk of all medication before approval.. In addition, FDA makes the labeling
This is better than having to buy ten different products to address any and all of your health problems, so it ultimately saves you money and time since you don't have to search for multiple
It also can improve their accuracy of diagnoses and health outcomes and improve care coordination through the efficiencies of practices.