Health and Healthcare
Is Big Pharma Advertising Getting Out of Control?
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How much are big pharmaceutical companies really spending to get their drugs out there in the public eye? In 2014, these companies spent about $4.5 billion in advertising alone, notably a level not reached since the recession. Many of the companies and drugs that round out the top five or even top 10 for advertising spending are in fact household names, and it’s no doubt that most people have at least heard of them.
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The top 10 drugs, in terms of advertising spending, account for 75% of all the money spent on advertising in the pharmaceutical industry. 24/7 Wall St. has included the big movers, along with information on the companies, including the consensus price target and 52-week range.
Eli Lilly & Co. (NYSE: LLY) took the top spot in 2014 with its drug Cialis, which treats erectile dysfunction. A total of $272 million was spent on advertising for Cialis, according to Kantar Media. Shares of Eli Lilly were up 0.7% at $85.41 on Friday. The stock has a consensus analyst price target of $84.06 and a 52-week trading range of $60.14 to $87.24.
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Pfizer Inc. (NYSE: PFE) took two spots in the top five, with Lyrica and Viagra. Lyrica treats nerve and muscle pain caused by diabetes, along with shingles, fibromyalgia or a spinal injury. Viagra is another erectile dysfunction drug. Pfizer shares were relatively flat at $34.06 on Friday. The stock has a consensus price target of $37.94 and a 52-week range of $27.51 to $35.53.
AbbVie Inc. (NYSE: ABBV) was previously the top advertising spender in 2013, when Humira topped the list. And Humira is still in the top five. The drug treats arthritis, ankylosing spondylitis, Crohn’s disease or similar problems. Shares of AbbVie were up 0.9% at $70.47 on Friday. The consensus analyst price target is $74.00, and the 52-week range is $51.37 to $70.76.
Bristol-Meyers Squibb Co. (NYSE: BMY) rounds out the top five with Eliquis. This drug is part of the next generation of blood thinners. Shares were up 1.1% to $67.56 on Friday, within a 52-week trading range of $47.34 to $69.86. The stock’s consensus price target is $70.33.
According to Kantar Media, the top five ranked as such:
- Cialis $272 million
- Humira $259 million
- Lyrica $246 million
- Viagra $232 million
- Eliquis $221 million
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