CSRxP Analysis: DTC Report

Direct-to-Consumer (DTC) pharmaceutical advertising spending, tax implications and impact on prescription drug costs in the U.S. The Congressional Budget Office (CBO) estimates that limiting pharmaceutical advertising would lower prescription drug spending. However, savings estimates would be greater taking federal tax revenues into account.

We estimate that taxing or prohibiting pharmaceutical advertising could increase federal tax revenues by $1.5 to $1.7 billion annually from 10 of the largest pharmaceutical companies operating in the U.S.