Healthy Skepticism Library item: 6986
Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.
Publication type: report
de Laat E, Windmeijer F, Douven R
How does pharmaceutical marketing influence doctors' prescribing behaviour?
2002 Mar
http://www.cpb.nl/nl/news/2002_11.html
Abstract:
The Netherlands Bureau for Economic Policy Analysis (Centraal Planbureau – CPB) conducted a study of Dutch prescribing practices and marketing data for 11 common drugs between 1994 and 1999. It found that medical doctors were heavily influenced by marketing activities of pharmaceutical companies. Pharmaceutical companies spent 20% or more of their revenues on marketing, more than in any other industry. An increase of 10% in marketing efforts resulted in a 3% increase in demand. Approximately 40% of this increase is at the expense of demand for other products; the remainder comes from an overall increase in demand for drugs. Medical doctors value drugs higher and prescribe them more frequently the more marketing information they receive on them. Pharmaceutical marketing activities reduce price elasticity in prescribing behaviour: this reduction was statistically significant. Marketing activities specifically focused on doctors, e.g. detailing and direct promotional texts, reduce this price elasticity to nearly zero. The CPB argues that in a sub-market, e.g. that of anti-hypertensives, antacids, and anti-depressants, where marketing activities increase, prescribing behaviour of doctors becomes less cost-conscious. This is unfavourable for welfare in a nation, as it provides pharmaceutical companies with extra market power, a power that may manifest itself in price increases or absence of price decreases. The CPB proposed stricter rules, including bans on ‘training’ activities sponsored by the industry, and banning pharmaceutical company grants for participation of physicians in post-marketing research as a way to promote specific drugs.
