Pharma Roundup: Merck's Januvia, Bristol's Money, DTC Spending Down, and More

(MoneyWatch)  DTC ad spending continues to slip -- A report from TNS Media Intelligence suggests that pharma companies now spend less on direct-to-consumer advertising. The sector was considered recession-proof in the past, but spending dropped in 2007 and is projected to do the same in 2008. Big declines have occurred in non-branded advertising, such as disease-awareness ads, showing a 63% decline since 2006. Additionally, the three most expensive drug launch campaigns will together cost just $210 million this year, a steep drop from 2005 levels, which saw ad spend of $594 million. [Source: AdAge, via Pharma Marketing Blog]

Merck's Januvia: large-scale safety tests, controversial promotion -- Apparently having learned a lesson from GSK's Avandia (whose safety concerns are translating into sales woe) and its own ongoing Vioxx disaster, Merck is embarking on a large-scale (14,000 participants) trial of diabetes drug Januvia. The Duke-run study will look for adverse effects on the heart. Meanwhile, Merck paid pharmacy chain CVS Caremark to send doctors a letter encouraging Januvia sales; union groups are not pleased. [Source: CNBC's Pharma's Market and Pharmalot]

Bristol-Myers Squibb to free $1 billion by 2011 -- Apparently heeding a report that advised pharma companies to improve access to their working capital, BMS plans to manage inventory, receivables, and payables to release between $750 million and $1 billion. The company attributes the move to impending patent expirations. [Source: FiercePharma]

PhRMA enlists Montel to laud free market in ads -- The trade group will run ads in which Montel Williams tells consumers that a free market health care system is better for all of us, as opposed to the heavy reforms Washington may pursue. Today's politicians, including president-elect Barack Obama, are making health care reform a high priority--and aren't shy about blaming drug companies for problems. The ads are designed to address Big Pharma's unpopularity among average Joes. [Source: PharmaGossip]