May 8, 2008
Will The New Push To Limit DTC Advertising Advance?
Analysis of:
New Rules on Drug Ads Sought | online.wsj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Billions of dollars in pharmaceutical revenue, a large chunk of the advertising industry, and public health implications are at stake as Congress once again considers stricter limits on direct to consumer (DTC) advertising.
Analysis: Will those in Congress wanting further restrictions on DTC advertising get their way? It depends on whether others consider current legislation sufficient. DTC advertising is already highly regulated and many recognize the need to weigh the benefits of increased consumer awareness against the need to ensure responsible marketing.
In an effort to tighten regulation, Rep. Stupak will attempt to highlight instances where FDA's application of current regulations were lax and where pharmaceutical marketers pushed the envelope on acceptable advertising. Is new legislation needed? Or instead, is FDA's application of the current regulatory framework too lax. Or is the status quo the right balance?
While it is unlikely that Congress will pass legislation placing further limitations on DTC advertising, the hearings will in fact have some impact advertising by serving as a warning to FDA and industry: reign in the most aggressive advertising or face increasing odds of tougher legislation.
Analysis: Will those in Congress wanting further restrictions on DTC advertising get their way? It depends on whether others consider current legislation sufficient. DTC advertising is already highly regulated and many recognize the need to weigh the benefits of increased consumer awareness against the need to ensure responsible marketing.
In an effort to tighten regulation, Rep. Stupak will attempt to highlight instances where FDA's application of current regulations were lax and where pharmaceutical marketers pushed the envelope on acceptable advertising. Is new legislation needed? Or instead, is FDA's application of the current regulatory framework too lax. Or is the status quo the right balance?
While it is unlikely that Congress will pass legislation placing further limitations on DTC advertising, the hearings will in fact have some impact advertising by serving as a warning to FDA and industry: reign in the most aggressive advertising or face increasing odds of tougher legislation.
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