The FDA is planning some new research on DTC ads?highlighting?the price of the drug. The vast majority of DTC ads do not?currently?state price of the drug?or compare price to competitors. Some ads, which use price support, will tell consumers they get a rebate or coupon.?Some show a price the consumer will pay with the price support.
"Drug companies will do much more advertising testing on price." - Bob Ehrlich
The future of drug advertising will change as consumers are paying more in deductibles and co-pays. Price of branded drugs will be a much more important factor in a consumer decision to ask for a branded drug. Both consumers and physicians will need to be more educated on the net cost of a drug.
The decision drug companies will need to make in their advertising is whether to discuss price. While that may be difficult given the wide range of prices consumers pay?for the same drug, some discussion of average price may be needed. If generic alternatives are available, then consumers are going to need justification for the premium price.
FDA is doing this research to see what effect advertising prices has on consumer perception of the drug. FDA is not really interested in price per se, just whether talking price affects what consumers remember about effectiveness and fair balance. The fact that FDA is planning to study price indicates they expect price advertising to increase.?They are testing cells with comparative competitive pricing and without.
Drug companies are under a lot of pressure to rein in price increases. Consumers have online access to what drugs cost and we can expect them to be much more price savvy as they get hit with out of pocket increases. I?think?drug companies?will do?much more advertising testing on price. Do they have a competitive advantage versus other brands? How much more is their brand versus generics? Can they talk about their efficacy in daily cost terms familiar to consumers?
Drugs that cost thousands a month should probably not get into price discussions. There is a much different consumer calculation made for cancer or hepatitis drugs than for cholesterol or GERD. Most drugs for chronic conditions will have to address price in their ads or on their web sites. Having clear price information will help both consumers and physicians. No doctor wants patient complaints about the cost of a drug leading to non-fill or poor compliance. No consumer wants to hear about a new drug, but then find out they cannot afford it.
Like it or not, the days of someone else pays are over. Consumers will pay in co-pays, deductibles, or higher premiums. Drug bills are a large part of non-reimbursed medical expenses and consumers are being squeezed in all health care costs. You can be sure government and insurance companies are going?to make price an issue. That means a lot of price education for consumers and physicians. Drug companies are going to need to justify their price or see market share erode.
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