Pharmaceutical Industry Marketing

How much does the pharmaceutical industry spend to market its drugs?

Pharmaceutical Industry Marketing

Reports of pharmaceutical and medical device industry marketing expenditures vary.

The following are some recent estimates:

• $20.4 billion in 2007 (Verispan)
• $29.8 billion in 2005 (IMS)
• $57.5 billion in 2004 (Gagnon 2008 - CAM and IMS data combined)
• $54 billion in 2001 (Angell 2004 - Extrapolation from Novartis annual reports)

What do these totals include?

Estimates of pharmaceutical marketing normally include detailing, journal advertising, pharmaceutical samples and direct-to-consumer advertising. Detailing is the largest industry marketing segment after expenditures on pharmaceutical samples. It is the industry term for face-to-face sales and promotional activities directed toward office- and hospital-based physicians and directors of pharmacies. It includes pay for sales representatives and the meals and gifts they provide. IMS data includes expenditures to “field the rep” but not the cost of managers and training.

What can be done to protect patients, control health care costs, and bolster professionalism among physicians?

The Prescription Project promotes a range of solutions for consumers, physicians, state and federal policy makers, and public and private payers. For more, visit our website.

Download the full PDF for more information.

Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics

Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.

Quick View

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.