{"id":6833,"date":"2010-05-17T18:30:00","date_gmt":"2010-05-17T18:30:00","guid":{"rendered":"http:\/\/www.pharma-mkting.com\/equation-proves-that-broadcast-dtca\/"},"modified":"2019-02-21T01:21:50","modified_gmt":"2019-02-21T01:21:50","slug":"equation-proves-that-broadcast-dtca","status":"publish","type":"post","link":"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/equation-proves-that-broadcast-dtca\/","title":{"rendered":"Equation Proves that Broadcast DTCA Only a Minor Contributor to Growth in Rx Drug Expenditures"},"content":{"rendered":"<p>In an equation that Einstein would be proud of, researchers at the National Bureau of Economic Research (NBER) supported by a grant from the Agency for Healthcare Research and Quality have &#8220;proved&#8221; that &#8220;the expansion in broadcast DTCA may be responsible for about 19 percent of the overall growth in prescription drug expenditures over the [period between 1994 and 2005], with over two-thirds of this impact being driven by an increase in demand as a result of the DTCA expansion and the remainder due to higher prices.&#8221; The researchers based this on an analysis data supplied by IMS fed into this equation:<\/p>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><a href=\"http:\/\/3.bp.blogspot.com\/_ZiPiXEv_Q_g\/S_GG9_7E25I\/AAAAAAAAC_0\/Cp1oTfBSvGI\/s1600\/DTC_Price_Eqn.jpg\" imageanchor=\"1\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"148\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2010\/05\/DTC_Price_Eqn.jpg\" width=\"640\" \/><\/a><\/div>\n<p>\nThe equation denotes that the market price (P) is a function of promotion, time until patent expiration and the number of drugs in the therapeutic class. Hey, I&#8217;m not going to get into an analysis! Ed Silverman over at Pharmalot already did a great job explaining the research (see <a href=\"http:\/\/www.pharmalot.com\/2010\/05\/dtc-ads-not-biggest-driver-of-drug-spending-study\/\">here<\/a>).<\/p>\n<p>I&#8217;m just in awe of this equation, which to me looks suspiciously similar to an equation used by Villanova scientists that proved that DTC spending does not impact Rx prices (<a href=\"http:\/\/pharma-mkting.com\/blog\/2007\/06\/villanova-scientists-prove-that-dtc.html\">see here<\/a>, where you can see a T-shirt with the equation on it). <\/p>\n<p>The authors of the Villanova study concluded that &#8220;DTC advertising has no effect on the price of drugs&#8221; whereas the authors of the NBER study conclude that &#8220;while DTCA is significant, it has not been the primary force driving the growth in overall prescription drug expenditures.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an equation that Einstein would be proud of, researchers at the National Bureau of Economic Research (NBER) supported by a grant from the Agency for Healthcare Research and Quality have &#8220;proved&#8221; that &#8220;the expansion in broadcast DTCA may be responsible for about 19 percent of the overall growth in prescription drug expenditures over the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12],"tags":[104,289,86,855],"topic":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - 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