Posts tagged ‘pharmaceutical’

New Government Report: Potential Effects of a Ban on Direct-to-Consumer Advertising of New Prescription Drugs

Potential Effects of a Ban on Direct-to-Consumer Advertising of New Prescription Drugs

by Sheila Campbell
Paperback, 8 pages, 2011, $10.00
ISBN: 1437986631

Concerns about direct-to-consumer advertising of prescription drugs have spurred recent proposals for a moratorium on advertising brand-name prescription drugs to consumers during the first two years following a drug’s approval by the Food and Drug Administration. This report examines some of the effects of such a moratorium, drawing on data documenting direct-to-consumer advertising and other promotional activities used by pharmaceutical producers as well as academic analyses of how advertising has affected the market for drugs. Charts and tables. This is a print on demand edition of an important, hard-to-find publication.

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June 6, 2011 at 10:19 am Leave a comment

New Government Report: Pharmaceutical R&D and the Evolving Market for Prescription Drugs (ISBN: 1437925057)

Pharmaceutical R&D and the Evolving Market for Prescription Drugs (ISBN: 1437925057)
By David Austen and Colia Baker
(Paperback, 8 pages, 2009, $10.00)

Investment in Research and Development (R&D) over the past several decades has produced a wealth of valuable new drug therapies that have made it possible to treat major illnesses that were not treated previously or were not treated as effectively.

As the scope of available drug therapies expanded, spending on prescription drugs became the fastest-growing category of total spending on health care in the U.S. Between 1994 and 2004, real (inflation-adjusted) spending on prescription drugs rose at an average annual rate of 11.1%, compared with 3.5% for hospital care and 4.3% for physicians’ services.

More recently, however, that growth has slowed: From 2004 to 2007, drug expenditures grew by an average of just 3.2% per year, slightly less than the rate of growth in overall health care spending. As a fraction of total spending on health care, spending on prescription drugs rose from 6% in 1994 to around 11% in 2004, where it has remained.

That slowdown in the rate of growth in spending reflects changes in both the supply of and the demand for prescription drugs. The greater the expected revenue from a prospective new drug, the more willing a drugmaker will be to invest to develop it. Those decisions will help determine which drug therapies become available in the future and thus will affect future growth in health care costs.

This report describes the current state of investment in drug R&D and the factors that influence it. It also examines how various policy options to control the growth in health care costs or to expand insurance coverage could affect R&D spending. Figures.

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July 22, 2010 at 8:00 am Leave a comment


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