Recently, we reported that Roche Pharmaceuticals (RHHBY.PK) had lost its court challenge to Australia's ban on Direct to Consumer Advertising of over-the-counter Xenical (alli to us in the U.S., marketed here by GlaxoSmithKline (NYSE:GSK)) (Australian Court upholds ban on Xenical advertising). Now Roche reports that it expects sales of Xenical to fall, based on its inability to advertise the drug. What's particularly telling is the quote from the story as reported on Forbes.com:
'We feel we have done all we can and will now be considering the viability of supporting Xenical in the future,' said managing director of Roche Products Fred Nadjarian after the judgement was announced at the end of last month.
How important, useful or effective could a drug be that cannot survive without aggressive promotion through direct-to-consumer advertising?
To paraphrase a quotation from Dr. Marcia Angell, author of The Truth About the Drug Companies, "Truly innovative drugs do not need promotion." If Xenical were a wonder drug, it wouldn't have to rely on TV ads.
Here's the full item from From AFX News Limited (via Forbes.com):
Roche sees sales of weight loss drug Xenical dropping in Australia after ad ban 09.05.07, 8:20 AM ETZURICH (Thomson Financial) - Roche Holdings AG expects sales of its weight loss drug Xenical to fall in Australia after a federal court there banned direct advertising to consumers on concerns the drug was being sold to people who may not need it.
'We've lost the ability to advertise using the brand name, which makes it very difficult to promote, so consumers will not ask for it by name in the pharmacies,' a Roche spokeswoman in Australia told Thomson Financial News.
The pharmaceuticals group is considering its options in the wake of the court's decision, added the spokeswoman.
'We feel we have done all we can and will now be considering the viability of supporting Xenical in the future,' said managing director of Roche Products Fred Nadjarian after the judgement was announced at the end of last month.
Xenical is categorised as a Schedule 3 drug, which means it is available without a prescription, but consumers should receive counselling as to its use.
sarah.fenwick@thomson.com