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Prescription Drug Ad Scam

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One of the "wonderful legacies" of the Reagan Administration was the Prescription Drug Marketing Act of 1987. You can thank Ronnie and his deregulatory economists for the flood of erectile-disfunction ads on TV. In 1988 there was a total of $7 million spent on Direct to Consumer (DTC) prescription drug ads. Things have changed since then.

In 2008, pharmaceutical manufacturers spent about $4.8 billion on direct-to-consumer television, radio, magazine and newspaper advertising, according to Nielsen Media Research.

Now some lawmakers including Jerrold Nadler of New York are suggesting that the drug industry no longer get to deduct their DTC ad expenses from their taxes. Personally, I think they should not be allowed to advertise at all, because it's a doctor's choice what medications he prescribes. Somehow, even though they had no right before 1987 to DTC, Big Pharma has turned this into a First Amendment Issue.
"On First Amendment grounds, I am not going to say we will ban" drug advertising, said Mr. Nadler, who represents parts of Manhattan and Brooklyn. "But they should not be able to get taxpayers to subsidize it."

I have one simple question that might clarify this. Who do you think pays for the $4.6 billion of advertising?

You and me.


19 Comments

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It would be in the best interests of the public to be able to obtain a listing of the distribution of this ad revenue. i.e. Specifics as to each television network/cable channel; each newspaper and magazine, as well as radio programs.

All media outlets reporting on healthcare reform needs to be mandated to proffer full disclosure as to their 'share' of all revenue from entities impacted by any new healthcare legislation. Each and everytime they publish any 'reports' on this matter.

(Of course, all public officials should also be mandated to fully disclose amounts of financial - or any gift/donation - revenue to their campaigns or any associated accounts from same! Interesting there has been little coverage of this by most MSM.)

Any assistance in obtaining this info would be greatly appreciated. We need to follow the money if we have any hope of curing what ails us!

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Dang it! I have been squawking for years about Big Pharms spending more money on ads then research, and I mean years. What I didn't know is they got a tax deduction. WTF?

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I would only add that a not insubstantial component of their research expenditures is devoted to marketing research, and an even greater amount is devoted to developing "me too" drugs that are similar to those already available but help the company gain market share. Some degree of choice is desirable for drugs of a given class, but the industry carries it to greatly excessive levels.

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The same holds true for all the money that is thrown at our politicians. The numbers from Wall Street and finance in general are reflected in higher costs for financial services. What is realy awful is the money is used to influence our lawmakers in ways that most often are harmful to citizens.

Our system is the dumbest thing ever. I have a lot of heartburn knowing we're paying somebody to give us a screwing.

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These revenue streams are there for one reason, to control the content of the station.

Have you ever seen a story showing how dangerous these drugs are?

Did you know for one simply example that ALL the statin drugs used to control cholesterol, put the patient at danger for heart attack?

Research it.

Have you ever seen a print ad telling you that 100,000 people a year DIE of side effects of prescribed drugs?

Just another example of the corrupt relationships between corporate interests and ultimately the government agencies who more often then not are controlled by the industry they purport to regulate.

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Have you ever seen a story showing all the millions of people whose lives have been saved by such modern drugs?

I've got kidney failure. Drugs developed in the last 10 years, such as Aranesp, have kept me from having to get monthly blood transfusions, with all the attendant risks of such transfusions. (That was how kidney failure was treated 30 years ago--with monthly blood transfusions.)

The much-maligned Big Pharma companies developed and marketed those drugs.

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So have I got this straight? According to advertisments, I am to recommend to my doctor medication that he/she should prescribe for me? Fright time if true since not a few pharmacists agree that if they 'filled' what too many doctors prescribe, they'd kill the patient and now with patient (who probably know absolutely nothing about drugs) imput in the mix we're better off?

If nothing else, drug ads must be banned because as I've pointed out they have the potential to kill people.

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If nothing else, drug ads must be banned because as I've pointed out they have the potential to kill people.


On the other hand failure to learn of a drug that can prevent death can kill you just as dead. Drugs that provide benefit should be advertised widely. Keeping the consumer in the dark is bad practice for many reasons.

In the 1960s, the chance of dying in the days immediately after a heart attack was 30 to 40 percent. In 1975, it was 27 percent. In 1984, it was 19 percent. In 1994, it was about 10 percent. Today, it’s about 6 percent….

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"drug that can prevent death can kill you just as dead" is not information I notice is provided so succinctly pharmaceutical advertising.

As far as "death from heart attack" Abdul you have to show that pharmaceutical advertising accounted for the decrease.

Otherwise, its like saying Bush did a good job on the economy because computer CPU speeds increased from 2000-2008.

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Some watchdog groups have pointed out that some teevee ads ask you to go to their websites and download info and questionaires that you fill out and take to your doctor. Bad form. Also some charges that some new diagnoses like "restless leg syndrome" are hypes for accidental drug discoveries. Factor in, also, how many drugs are being prescribed for conditions that the FDA never even approved, and you have got yourselves a real ballgame.
Me, I don't want their none o' their stinkin' drugs!
p.s. Listen to ads about possible side-effects; "If you take *this* anti-depressant, and notice suicide ideation, talk to your doctor." Cool, I just got un-depressed enough to get the energy to KILL MYSELF? And often the lists of side-effects sound worse than the condition you might be taking the drug for.

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Businesses always deduct their business expenses before income taxes are computed. That's because we pay "income taxes" in this country, not taxes on gross receipts. Why would this particular expense be different?

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Because we don't like it?

Not all expenses are treated equally in terms of deductibility. Take meal and entertainment expenses for example.

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If "we" don't like it, why did "we" make it legal?

This is a democracy; we need to live with the decisions of our elected officials. If we think this type of advertising should be illegal, we progressives should work on changing the law. Backdoor mechanisms like removing the tax deduction are anti-democratic and anti-progressive.

Before making it illegal, we need to think twice, though. We should also recognize that this kind of advertising, despite its distasteful aspects, supports full consumer choice, which is a progressive desideratum. For example, if someone is in a cost-cutting HMO or government insurance program and his doctor fails to tell him about an expensive drug that could help him, advertising about the drug may give him the information that levels the playing field.

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I don't get the huge spending on Plavix. It's not really a drug that you would ask your doctor for, it's something that's prescribed after a cardiac "event" or stroke.

It's a goldmine for the drug maker because it's one of those things you end up taking for the rest of your life. And because they gamed the patent system to prevent it from going generic when it normally would have.

So why advertise? Just to remind people they should be taking it? Spending 4% of sales on ads just for that seems odd to me.

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This advertising focused on consumers is useless and possibly harmful. Consumers just do not have the education necessary to evaluate any pharmaceutical products.

Just because I might happen to know of brain surgery does not qualify me to perform it. Not to mention that we are generally incapable of objective self-diagnosis and treatment. Were either of these true we wouldn't need doctors.

The idea being planted by this advertising is false because it dismisses the prerequisite of possession of specialized knowledge. The audience that is targeted is representative of marketing gone amok.

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I have a few questions and observations:

When I was a kid there was always that rumor about "Spanish Fly!" I never thought that I would be forced to observe cutesy adds selling the stuff at a near-saturation frequency 7-24.

I have read that only two modern countries have legalized the broadcast of advertisements for prescription drugs...the other country is New Zealand.

Why do Americans pay (in most cases) double for identical prescription drugs than what is charged in other countries?

Day after day I hear anti-public insurance politicians call our medical system "the best in the world." The statistics I've read refute that claim, repeatedly. Yet, no one challenges the claim. Why not?

Why was a law passed that negated the inclusion of medical bills from the bankruptcy act?

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This information is very useful! Thanks!
Best regards, Katya, CEO of facebook, opensolaris iscsi initiator

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The Actual truth is that they get huge amount of tax from drug pharmacies (This include everyone from brand to Online generic pharmacy). So why they will not support them?. "In 2008, pharmaceutical manufacturers spent about $4.8 billion". I am curious to know the amount spent on 2010. I am sure this will be triple by now due to increase demand of drugs in health sector.

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Si vous etes interesses par le dossier, ou desirez en savoir plus, contactez-moi par mail, et je vous mettrai en contact.
Best regards,Jane, CEO of db2 high availability

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