Sep. 10 at 7:59 PM
The Trump administration is cracking down on direct-to-consumer prescription drug ads, a $ 10B -a-year industry that has long proven effective at boosting sales. The plan, led by HHS, the FDA, and the White House, includes new disclosure rules and threats of strict enforcement—though legal challenges and staffing cuts at the FDA raise doubts about its impact.
Studies show drug ads significantly influence prescriptions, particularly for branded medicines with limited clinical benefit. A pullback in advertising could weigh heavily on pharma revenues.
Drug stocks slipped Wednesday, with Eli Lilly, Pfizer, Johnson & Johnson, and Merck all edging lower.
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