Healthy Skepticism Library item: 20098
Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.
Publication type: news
Simpson M
Report on controversial drug stand attracts global interest
The National Business Review 2000 Jun 23
Full text:
The multibillion-dollar global pharmaceutical industry is interested in a new report showing this country’s experimental mass media drug advertising has been successful.
The study, carried out by the Researched Medicines Industry and released this week to The National Business Review, has assessed the impact of allowing controversial direct-to-consumer advertising of drugs.
It found the hands-off regime had some positive spin-offs, including helping move expensive healthcare delivery from the public to the private sector and educating consumers.
“Recent surveys indicate that New Zealanders are aware they will need to make a greater private contribution toward meeting the cost of their healthcare”, the RMI said in its report.
Pharmaceutical companies have been eager to use mass media advertising to battle failing sales as well as to counter commercial pressure from this country’s frugal drug-subsidy agency, Pharmac.
New Zealand’s unique regime, allowing relatively unrestricted direct-to-consumer (DTC) drugs advertising, has proved a financial boost for large companies such as Roche and SmithKlineBeecham competing in the healthcare marketm the RMI report says.
The RMI said the government’s pharmaceutical budget, managed by Pharmac, has grown only 3% in the past six years.
“Which in real terms means no growth. This puts commercial pressure on pharmaceutical companies to help develop the growing private healthcare market and to compete more strongly for a share of the public health dollar”, said the 34-page document, which is being sent to international health authorities and drug companies.
Canadian health officials are among world experts who have travelled to this country to see first-hand how the free-for-all regime works.
This is one of the few markets in the world where government approval does not have to be sought before pharmaceutical advertising is launched.
Since 1997 direct-to-consumer advertising has rapidly increased. Advertising figures for major pharmaceutical companies show huge increases in the past year.
SmithKline Beecham, which with the Health Funding Authority was jointly behind the launch of the flu vaccine Fluarix and is one of the top 10 advertisers in household and personal products category, spent $4.9 million on television advertising in 1999. Douglas Pharmaceuticals boosted its advertising spend last year 210% while Glaxo Wellcome boosted its by %67.7 from 1998 to 1999.
The mass appeal of drugs such as Viagra and the fat-reducing Xenical have alarmed health lobby groups.
Commercially driven, DTC advertising has been criticised for putting direct pressure on the Pharmac budget as well as on doctors prescribing the medicine.
The advertising has also drawn health industry and consumer criticisms for being emotive, manipulative and not divulging all the drug’s side effects. Roche product Xenical, with its big budget award-winning series of creative advertisement, has copped flak for leading obese people to become dependent on the drug.
The RMI believes the intention of DTC advertising was to open up the market. “The RMI acknowledges the commercial motive for advertising but contends that the spin-off public health benefits, including the benefits that a more informed and motivated patient brings to the doctor-patient relationship, are considerable and undeniable”.
In its report the RMI maintains pressure on Pharmac is a result of health needs, not advertising.
