Summarised by Centrist
US Health and Human Services Secretary Robert F. Kennedy Jr. is weighing policies that could seriously reduce pharmaceutical advertising revenue for American broadcasters.
While not a formal ban, the proposals would make direct-to-consumer drug ads harder and more expensive to run, potentially hitting news media where it hurts.
The two measures being explored include requiring drugmakers to provide fuller disclosures of side effects (lengthening and raising the cost of ad slots) or stripping the ability to claim ads as tax-deductible business expenses.
Either change could chill the more than USD $5 billion (NZD $8.3 billion) that drug companies spent on US TV ads in 2024.
“Direct-to-consumer pharmaceutical advertising must prioritise accuracy, patient safety, and the public interest—not profit margins,” said HHS spokesman Andrew Nixon.
Almost half of US drug ad spending is funnelled through major news broadcasters including CNN, MSNBC, CBS News and Fox News. With audiences fragmenting and digital platforms siphoning off traditional ad revenue, pharma ads remain a rare growth area for linear TV.
A more than 8 percent year-on-year rise in TV pharma spending was recorded in the first eight months of 2024 alone.
Industry body PhRMA pushed back, saying ads provide “fact-based research” that helps patients make informed health decisions.
Analysts say newsrooms already struggling to stay afloat may face another blow if ad dollars dry up.
Image: sweejak
