How are pharmaceutical companies’ ads profitable?

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Considering the drugs can’t be obtained without a prescription anyway?

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7 Answers

Anonymous 0 Comments

A couple ways:

– Let people know a condition exists and there may be a drug available to treat it. Say something like psoriasis… some may have it and think it’s just an annoying rash, use some OTC ointment on it vs. asking a doctor to look at it and possibly prescribe something.

– People on an existing drug for a condition might ask their doctor if a new med they’ve seen ads for will treat their condition better and/or without side effects they may have with current drug.

– New drugs cost a ton in R&D to develop, so the more quickly they can increase customers taking the drug, the more quickly they can amortize the development costs and get to their big profit window. Drugs formulations are only protected by patents for 20 years, after which other companies can make generic versions. So drug companies have that 20 year window to best profit off a drug. The more and more quickly they can find takers for chronic condition meds, the more they’ll make during that time.

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