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Rx Gift Ban: Just the Facts

What’s at stake?

The pharmaceutical industry spends more on marketing than any other entity. Marketing expenditure accounted for 18.2 percent of the sales dollar and is growing compared to research and development, which has slowed to 17 percent. More facts to consider:
Prescription drug spending is the fastest growing medical expenditure for consumers. The average growth is 6.3 percent per year, outpacing hospital services (6.1%) and physician and clinical services (5.4%).

On average, the pharmaceutical and medical device industries spend over $20,000 per doctor each year on marketing efforts.

As of March 18, 2011, there were more than 13,000 individual entries in the Department of Public Health’s public database of payments made to prescribers by drug and medical device companies.

Has the law negatively affected Bay State businesses, workers?

Many who oppose the law claim that the Massachusetts economy was negatively impacted by the restrictions. The facts prove otherwise.

Biotechnology Industry – Venture Capitalist investment in Massachusetts-based companies in 2010 was up 26 percent over 2009 to $246 million on a trailing four-quarter average basis, outpacing and eclipsing Silicon Valley as the most active target for bio-focused venture capital in the nation.

Conventions – Pharmaceutical and medical industry events generated $166.55 million in revenue for Massachusetts in 2009: the most by any industry in 2009 and totaled more than the commercial, technology and education industries combined.

Employment – The number of jobs in the Massachusetts biotechnology and pharmaceutical industry reached an all-time high in 2009 at 46,553, which marks a 60 percent growth since 2000.

Restaurants – Revenues are up, trends point to growth, and the recent industry slowdown was a national trend caused by the economic downturn.

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