Little is known about how pharmaceutical companies have
altered promotional spending in response to major health care
changes. First, during the past decade there has been a slowdown
in new drug introductions. During the second half of the 1990s,
the FDA approved a large number of small molecule therapies for
common conditions, including many drugs that were the first of
their kind. These ‘‘blockbuster’’ drugs were heavily marketed,
resulting in a 162% increase in total promotional spending
between 1996 and 2005 [1]. In recent years, however, blockbuster
drugs have faced increasing competition from generics, as well as
branded rivals, with the generic share of total prescriptions
increasing markedly from 63% in 2006 to nearly 80% in 2010
Little is known about how pharmaceutical companies havealtered promotional spending in response to major health carechanges. First, during the past decade there has been a slowdownin new drug introductions. During the second half of the 1990s,the FDA approved a large number of small molecule therapies forcommon conditions, including many drugs that were the first oftheir kind. These ‘‘blockbuster’’ drugs were heavily marketed,resulting in a 162% increase in total promotional spendingbetween 1996 and 2005 [1]. In recent years, however, blockbusterdrugs have faced increasing competition from generics, as well asbranded rivals, with the generic share of total prescriptionsincreasing markedly from 63% in 2006 to nearly 80% in 2010
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