Direct‐to‐Consumer Advertising and the Demand for Cholesterol‐Reducing Drugs

In August 1997, the Food and Drug Administration (FDA) reinterpreted its advertising regulations to ease limits on the use of broadcast media when advertising prescription drugs directly to consumers. We estimate the effect of direct‐to‐consumer advertising on demand, using 1995–2000 data from the market for the statin class of cholesterol‐reducing drugs. We find no statistically significant effect from any form of advertising and promotion on...