Representatives of the nation's
pharmaceutical manufacturers are
opposing radical new legislation under
consideration in Montana that would
require them to disclose how much
they spend to promote their drugs in
the state. The bill is a response to concerns
raised by some consumer groups
that escalating prescription drug advertising
expenditures are fueling the
increase in medication prices in Montana
and elsewhere.
Although industry spending on
product promotion has risen in recent
years due to new federal rules allowing
direct-to-consumer ads for prescription
drugs, pharmaceutical
industry leaders contend that rising
Rx prices reflect sky-high research and
development expenditures, not advertising
costs.
Studies by the US Government
Accountability Office (GAO) support
this argument. According to GAO
researchers, drug manufacturers spent
nearly $119 million on research and
development from 1997 to 2001, compared
with less than $10 million on
consumer advertising.
Mr. Rankin is a freelance medical writer.