Prevagen is an over-the-counter supplement that purports to preserve, and even improve brain function. As I was recently subjected to yet another slick ad for this drug, I wondered about the role of direct-to-the-consumer advertising (DTCA).
Background
The federal government started to regulate drugs in 1906, and the current responsible agency is the US Food and Drug Administration (FDA). Marketing drugs was traditionally aimed at physicians only, as it was thought their training best put them in a position of evaluating the safe use of drugs. They were the intermediaries between the industry and patients. Requiring prescriptions written by physicians was a way to ensure this policy.
In the early 1980s, some companies began to advertise drugs directly to consumers. This practice was controversial from the top. Proponents felt it empowered patients and was an appropriate and highly valued source of information. Physicians feared that DTCA would actually result in harm to patients. Even much of the industry was circumspect. One pharmaceutical executive wrote that it would hurt physician/patient relations, confuse an unsophisticated public, and mislead consumers into buying costly and unnecessary drugs.
Nevertheless, the practice took off. Advertising to the lay public, especially on television, increased industry revenue dramatically. The industry soon surrendered concerns about the safety of DTCA, and poured resources into ads directed at the public. Spending of DTCA, most of which was for TV and digital marketing, went from $55 million in 1991 (all figures normalized for today’s dollar) to $363 million in 1995. By 1998, the figure was $664 million. Today, marketing experts estimate drug companies spend $10 billion on marketing their products, the majority of which is DTCA. Use of pharmaceuticals increased accordingly, and drugs now count for 11% of the overall healthcare expenditure in the US.
Back to Prevagen
The active ingredient of Prevagen is a protein derived from jellyfish. The idea is that, upon ingestion, the protein goes to the brain and improves cognitive function. However, the protein is broken down in the gut and never reaches the brain.
The sole study that supports the efficacy of Prevagen was produced by Quincy Bioscience, the company that manufactures the drug. The scientific community has derided the quality of the study. Recognizing the difficulty of getting approval of the drug by the FDA, Quincy markets Prevagen as an over-the-counter “supplement,” rather than a prescription pharmaceutical, allowing for far less regulatory scrutiny. Marketing experts estimate that the company spends in excess of $100 million per year touting the drug, almost all in television and digital ads. The company does not make sales data available to the public.
The state of New York and the Federal Trade Commission (FTC) sued Quincy for false advertising in 2007. The suit was concluded successfully in 2004, with the jury finding that, as a clinically proven memory supplement, the claims of improved brain function were not credible, and were materially misleading. As a result, the company was prohibited from asserting that Prevagen improves memory or cognitive function, with the court forcing Quincy to drop the phrase “memory improvement” in favor of “brain support.”
Is DTCA a Good Thing?
Forget the legal intricacies and the huge dollars involved. Does DTCA, as the pharmaceutical industry claims, result in better health outcomes for the American consumer of health services.
Physicians hate the practice. They feel that valuable time in the patient/physician interaction is lost, when they need to explain why a heavily advertised drug is not appropriate for a patient’s specific condition. If patients are in a prepaid plan (HMO), they may become suspicious that gainsaying doctors are merely trying to save money.
The pharmaceutical executive quoted above sums up the general case against DTCA.
Big Pharma, however, believes patients are now more knowledgeable and can take more responsibility for their health care decisions.
Whether DTCA is beneficial is a complex issue, one that is far beyond the scope of this blog entry. One thing is crystal clear, however, and that is that marketing directly to consumers is a decided economic benefit to the industry.
The National Library of Medicine, however, did a rigorous study of the marketing and use of Prevagen and concluded that the effect on overall health is a net negative.
One Last Thought
The Federal Trade Commission’s mission is to protect consumers from deceptive or unfair business practices. Maybe the FTC deserves some credit for the lawsuit mentioned above, but, to me, the ads are still mendacious and exploitative. The FTC clearly has not gone far enough–just look at the commercials for Prevagen.