The Trump administration is considering putting in place legal and financial hurdles that would reduce the number of pharmaceutical ads, according to reports from Bloomberg, citing sources close to the matter. Pharmaceutical companies represent over $10 billion of annual ad spend.
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Shares of pharma stocks, as the Trump administration weighs a crackdown on pharma ads, they are in decline. According to Bloomberg, this news and shares of Pfizer and AbbVie, they are falling to session lows amid the report. The Trump administration is discussing policies that would make it harder and more expensive for pharmaceutical companies to advertise directly to patients in a move that could disrupt more than $10 billion in annual ad spending. Although the US is the only place besides New Zealand where pharma companies can directly advertise, banning pharma ads outright could make the administration vulnerable to lawsuits. So, it's instead focusing on cutting down on the practice by adding legal and financial hurdles, according to sources cited by Bloomberg.
