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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: delmarbill who wrote (25612)	10/18/2000 1:26:08 PM
From: opalapril	Read Replies (3) \| Respond to of 42804

Looks like Gore was exactly right about Rx promotion & advertising, the AP reporter's lazy regurgitation of a hand-fed publicity release notwithstanding. "The industry spends about twice as much for marketing and administration as it does for research and development. This year drug makers will spend $26 billion, or 20 % of revenue, finding new drugs and then winning approval for them. The industry utilizes about 70,000 U.S. salespeople costing nearly $7 billion per year. Prescription drug sales totaled in excess of $100 billion for the first time in 1999. The drug companies spent $13.6 billion in 1999 promoting their products to the medical profession. They spent over $1.1 billion on advertising their prescription drug products on television, and spent a total of $1.8 billion promoting their products to the consumer. The industry spent over $75 million last year in lobbying Congress. According to researchers at Brandeis University, prescription drugs costs for insured individuals rose 29 % annually between 1996 and 1999. These are huge numbers any way you look at them." therubins.com It has a lot to do with relaxation in mid-1998 of historic TV advertising rules. Haven't you noticed the Prozac commercials in place of cigarette puffing? "Direct-to-Consumer Advertising of Prescription Drugs" Another factor in increased costs is the greater utilization due to the explosion in direct-to-consumer advertising (DTC). Over the past decade, direct-to-consumer (DTC) advertising expenditures have skyrocketed. In 1991 pharmaceutical companies spent $55 million to promote prescription products directly to consumers. By 1998 [when new FTC rules went into effect mid-way through the year], outlays on DTC advertising had multiplied over 20 fold to reach $1.3 billion. senate.gov "In 1999, drug companies gave $6.6 million to politicians, $1.5 million more than the industry gave during the entire 1993-1994 election cycle. In the 1992 cycle, drug industry contributions to Republicans and Democrats were nearly equal. But in the 1994 elections – as drug industry issue ads and the GOP attacked President Clinton's universal health care plan (which included coverage of drugs) -- the pharmaceutical industry shifted allegiance, and gave in excess of $1 million more to Republican candidates than to Democrats. From the 1993-1994 elections through 1999, prescription drug companies have given $30.5 million, $21 million or 69 percent of it to Republicans." opensecrets.org "In 1999, drug companies gave $6.6 million to politicians, $1.5 million more than the industry gave during the entire 1993-1994 election cycle. In the 1992 cycle, drug industry contributions to Republicans and Democrats were nearly equal. But in the 1994 elections – as drug industry issue ads and the GOP attacked President Clinton's universal health care plan (which included coverage of drugs) -- the pharmaceutical industry shifted allegiance, and gave in excess of $1 million more to Republican candidates than to Democrats. From the 1993-1994 elections through 1999, prescription drug companies have given $30.5 million, $21 million or 69 percent of it to Republicans. opensecrets.org With more drug companies using direct ads and with increasing government regulations, the issues surrounding such advertising are of great relevance and concern not only to physicians and pharmaceutical companies, but also to the general public." amsa.org