Hagan wants drug companies to reveal their marketing costs

YOUNGSTOWN -- Pharmaceutical drug companies conducting business in Ohio would be required to disclose and report their marketing costs to the state under a bill sponsored by state Sen. Robert F. Hagan.
"This legislation will give the state the ability to determine what impact the direct marketing of prescription drugs by manufacturers has on the overall price of prescription drugs to our residents," said Hagan of Youngstown, D-33rd.
The proposal would require drug manufacturers to annually disclose all expenses associated with advertising, marketing and direct promotion of drugs to Ohio residents.
It also would require disclosure of marketing expenses to health-care professionals, benefits managers, pharmacies, nursing homes and hospitals.
"We've been told for years that popular pharmaceuticals cost so much because of research and development," Hagan said. "I applaud drug companies for their innovation and dedication to developing miracle drugs. However, only a fool would believe that spending tens of millions of dollars annually on marketing these drugs doesn't drive higher the already exorbitant costs of life-saving pharmaceuticals."
Under Hagan's proposal, a manufacturer failing to report this information could face fines up to $10,000.