Record Growth Fuels Increase in Brand Name Drug Requests
PLYMOUTH MEETING, Pa., July 9 /PRNewswire/ -- Direct-to-consumer (DTC)
advertising spending for prescription drugs will reach at least $1.3 billion
in 1998, an increase over 1997 of more than 50 percent, according to IMS
HEALTH. This record growth follows a 42 percent increase reported for 1996 to
1997. And, recent survey results reveal patients' requests for brand name
drugs are up 59 percent. IMS HEALTH is the world's leading provider of
information solutions to the pharmaceutical and healthcare industries.
DTC ads now replace the advice of a friend or relative as the primary
source of information prior to patients requesting specific brand name drugs
from their physicians. This change follows the August 1997 change in FDA
guidelines that now allow manufacturers to state a product's purpose in
television advertising.
Prior to the FDA guideline change, 41 percent of the physicians surveyed
by IMS HEALTH reported observing an increase in patients' requests for brand
name drugs. In the new study underway, 65 percent of the physicians surveyed
to date observed an increase in brand name requests.
DTC Promotional Mix Continues Shift Toward Television Advertising
"Recognizing that patients are asking for more products by name, we wanted
to understand how patients are finding out about these products," commented
Sue Ramspacher, Group Director of Marketing Applications, IMS HEALTH North
America. "A significant shift is underway." In 1996, consumer magazines
comprised the majority -- 81 percent -- of the DTC promotional spending mix.
By the beginning of 1998, this figure dropped in half. Magazine expenditures
now comprise just over 40 percent of total DTC spending, with television
expenditures having grown to 50 percent of the total -- nearly a five-fold
increase. In 1996, the proportion spent on television advertising was
11.4 percent. "We expect this evolution to continue," stated Ramspacher.
Managed Care Programs Push Back
Responding to the increase in patient requests for brand name drugs, major
managed care programs are providing physicians with specific directions
against non-covered brands -- and they are encouraging prescribers to remain
within their formulary guidelines. These guidelines provide lists of brand
name drugs and their lower-cost generic substitutes that are recommended
within the program. Almost 25 percent of the physicians surveyed have
received specific direction on how to respond to patient requests for
non-covered brands, with an emphasis on staying within formulary guidelines.
Physician Aversion to DTC Advertising Increases
Physicians' preference for DTC advertising to either decrease or
discontinue altogether increased slightly to 65 percent, up from 61 percent
measured a year ago. Of the remainder, 7 percent expressed a desire to see an
increase, down from just under 10 percent a year ago.
The contribution DTC advertising plays in supporting or challenging the
doctor/patient relationship is the central theme behind physicians' views
either way. Physicians expressed a frustration at being placed 'in the
middle' when patients request brand name drugs that are not covered by their
managed care formularies. However, physicians are also quick to point out
that well-executed DTC advertising does lead to concrete benefits, such as
motivating consumers to seek healthcare advice and improving patient
compliance in following directions.
"The overall benefit of DTC advertising for patients remains unclear at
this point," noted Ramspacher. "It is too early to determine the extent to
which increased awareness is causing patients to seek out medical care for
illnesses that, otherwise, would go untreated. Despite what a patient may or
may not request of their physician, it is still the doctor who ultimately
makes the prescription decision."
Information Background
The physician survey findings are part of a series of studies conducted by
IMS HEALTH and Physicians Online. The 1997 survey results were completed in
June 1997, drawn from a sample size of more than 4,800 physicians. The
interim 1998 findings are based upon the views of almost 2,000 respondents
representing major specialty segments. The DTC spending figures are provided
by Competitive Media Reporting.
IMS HEALTH
IMS HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries. With more than $1 billion in 1997
revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest
pharmaceutical manufacturer information partner, with over 40 years'
experience in the industry. Key products and services integral to customer
day-to-day operations include: market research for prescription and
over-the-counter pharmaceutical products; sales management information to
optimize sales force productivity; technology enabled selling solutions for
sales and marketing decision-making; and technology systems and information
services that support managed care organizations.
Additional information and previous press releases are available at
IMS HEALTH's web site: http://www.imshealth.com.
SOURCE IMS HEALTH
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http://www.imshealth.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 115785
CONTACT:
Gary Friend, 610-834-5654, or Nancy Duckwitz,
610-834-5338, both of IMS HEALTH
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