Basic Interesting Pharmaceutical Facts

$ According to industry estimates, drug companies spent $15.7 billion dollars on promotion in 2000, up from $13.9 billion in 1999. (IMS Health; see www.ims-global.com) $ Sixty million “details? were made by 83,000 drug reps in the year 2000. Astra-Zeneca added 1,300 reps solely to promote Nexium. (Scott-Levin Consulting; see www.scottlevin.com) $ $7.2 billion dollars worth of free samples were distributed in the year 2000. (From IMS Health) $ The “research-based” pharmaceutical industry spends more on promotion and administration than it does on research and development. (Families USA; see www.familiesusa.org) $ Drug costs increased 18.8% to $131.9 billion dollars in 2000. Over a third of this increase was due to ashift to the use of more expensive drugs. (National Institute for Health Care Management; see www.nihcm.org)

$ 2.5 billion dollars were spent on advertising to consumers in 2000, a 35% increase from 1999; $468
million dollars were spent on journal ads. (NIHCM) $ Increases in the sales of the 50 drugs most heavily advertised to consumers were responsible for almosthalf (47.8%) of the $20.8 billion increase in spending in 2000. (NIHCM) $ In 2000, Merck spent $161 million on advertising for Vioxx. That is more than Pepsico spentadvertising Pepsi. ($125 million), and more than Anheuser-Busch spent advertising Budweiser. ($146million) (NIHCM)

$ The increase in Vioxx sales in 2000 accounted for 5.7% of the 1 year increase in drug spending.
(NIHCM) $ Since 1995, R&D staff of U.S. brand name drug companies have decreased by 2%, while marketing staff have increased by 59%. Currently, 22% of staff are employed in research and development, while 39% are in marketing. (PhRMA Industry Profile 2000; dcc2.bumc.bu.edu/hs/ushealthreform.htm) $ In a study by Avorn, et al, 46% of physicians reported that drug reps are moderately to very important in influencing their prescribing habits. (Amer Journal of Med, 1982)

$ A study by Chew, et al (JGIM, 2000) found that in the treatment of hypertension, over 90% of
physicians would dispense a sample that differed from their preferred drug choice. $ A study by Westfall, et al (JAMA, 1997), found that 96% of physicians and staff had taken samples for
personal or family use in the preceding year. $ The AMA generates $20 million in annual income by selling detailed personal and professional information on all doctors practicing in the United States to the pharmaceutical industry. (NY Times, November 16, 2000)