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Roche exec: DTC ads hurt big pharma
We can blame the tarnished reputation of the pharmaceutical industry on its decision to participate in direct-to-consumer advertising according to William Burns, head of Roche's pharmaceuticals group.
Are TV ads a fair scapegoat for pharma's problems? We're not sure, but Burns' revelation is ironic since it is clear is that Roche has dropped a hefty pile of cash on having Sally Field (video) peddle its osteoporosis drug, Boniva, on television lately--and we're betting that Roche will won't stop commercial ads aimed at consumers.
Burns says that direct-to-consumer ads undermine pharma's reputation in the eyes of patients. "DTC advertising has been the worst decision for the drug industry," he said. "When industry says we're spending all the money on R&D, but actually it's spending it on TV advertising to preserve margins, it doesn't get much credibility."
Only New Zealand and the U.S. allow direct-to-consumer advertising, but its prevalence has skyrocketed in the U.S., increasing 330 percent between 1996 and 2005.
- read the Pharmalot blog post
- see the Wall Street Journal blog entry
Related Articles:
Big Pharma's Top 13 Advertising Budgets
Pharma's DTC cuts scare ad industry
Why do people love to hate pharma?
Pharma drops again in public opinion
Comments
Totally agree! I could be wrong but doesn't GSK market Boniva in the US?
Pharma's tarnished reputation has come from its failure to innovate and generate novel new products, not from DTC advertising - DTC is a symptom, not a cause of big pharma's problems as it tries to maximize every bit of revenue from current products and steal share in crowded categories.
Industry still spends far more on R&D than DTC, and the head of Roche's Pharma business should know this, if not he is not qualified to run it.
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