2024 was a year of considerable change for the pharmaceutical industry. The biggest trend was undoubtedly the progression of the Inflation Reduction Act’s negotiated drug pricing, which sees CMS negotiating on pricing for a published list of ten high-cost prescription drugs under medicare part D plans.
This initiative represents a potential shift in addressing the rising costs of healthcare and aims to create a more sustainable financial framework for the national health system. While this is good news for patients, it will have a profound impact on the financial calculus of pharma, which will see reduced profitability of drugs negotiated in this manner. One of the anticipated downstream consequences of this ought to be a change in marketing strategy to ensure promotional efforts drive ROI for the businesses undertaking them.
At the same time, other key trends are reshaping the landscape in ways that demand attention. The rise of consumer privacy regulations is forcing companies to rethink data collection and personalization strategies. Disruptions to the traditional supply chain – accelerated by the growth of telemedicine platforms and direct-to-consumer models like Hims and Hers – are redefining how patients access and engage with healthcare. On top of all this, rising media and measurement costs are putting even more pressure on already tight budgets.
What RFK Jr.’s potential HHS leadership could mean for pharma marketing
The change in federal leadership has also introduced new dynamics for the healthcare sector. President Donald Trump selected Robert Francis Kennedy (RFK) Jr., son of Bobby Kennedy to lead the Department of Health and Human Services (HHS).
RFK Jr. will oversee a sprawling network of eighty three thousand employees in over a dozen subordinate agencies in his new role, notably including the National Institutes of Health, Centers for Disease Control and Prevention (CDC), Food and Drug Administration (FDA), Administration for Children and Families, Office of Inspector General, and Centers for Medicare & Medicaid Services (CMS).
RFK has been a professional advocate for decades now, so there’s a pretty extensive list of priorities the healthcare advertising community might reasonably expect from him.
An environmental lawyer by training, he has emphasized issues related to environmental health and nutrition, drawing attention to the impact of agricultural practices and dietary factors on public health, with corn derived high fructose sugars going into drinks and food, genetically modified plants, and lack of access to nutritionally balanced food prominent on the list. These all tie in, in various ways, to the research the medical community has advanced on social determinants of health – the non-genetic factors of our lived existence which contribute to health outcomes.
Unpacking the HHS’s 2025 health priorities
Anyone tasked with leading HHS is acutely aware of the twin crises of obesity and cardiovascular wellness that are leading causes and comorbidities driving mortality. How he proposes to solve these issues remains to be seen. Notably, the new class of GLP-1 drugs has shown remarkable efficacy in combating obesity, with American pharma giant Eli Lily’s Zepbound showing a 20% average weight loss in recent clinical trials. RFK Jr. has expressed skepticism about relying solely on pharmaceutical solutions to address the obesity epidemic. An FDA under his supervision will likely be substantially more interested in preventive and non-pharmaceutical interventions.
His advocacy for alternative health approaches is well-documented. He supports the deregulation of milk in favor of raw (unpasteurized milk). Similarly, RFK Jr. has voiced opposition to water fluoridation, a practice aimed at improving dental health, and is likely to challenge existing policies by engaging local public health and water authorities. He has also raised concerns about vaccine safety and approval processes. While his new position affords him greater discretion in shaping vaccine-related policies, it is unclear how these views will translate into specific regulatory actions.
A potential shake-up to DTC advertising?
In addition to these topics, RFK Jr. has also expressed opposition to direct to consumer (DTC) advertising of pharmaceuticals, a practice that has been a cornerstone of the industry’s marketing strategy. While he previously advocated for banning DTC advertising, it is unclear whether this will be a priority in his new role as HHS Secretary.
If he were interested in acting, significant barriers exist. His role doesn’t directly involve regulating DTC advertising, which falls more under the FTC than the FDA. Trump has appointed Dr. Martin Makary to lead the FDA, but it’s unclear if Makary shares Kennedy’s views on pharma promotion. Any action would face legal hurdles, including the Supreme Court’s 2010 Citizens United ruling, which protects corporate free speech. Crafting regulations to limit such speech, especially under a deregulation-focused leadership, would be challenging.
We have clear evidence of the impact of marketing promotion; the ROI for DTC drug advertising has been estimated as ranging as high as 100%-500%, depending on the drug. Consumers, when surveyed, want information about new treatments that can cure or reduce painful symptoms. Any major changes to this practice would need to carefully balance the interests of patients, healthcare providers and pharmaceutical companies while ensuring the flow of information about innovative treatments is not unduly restricted. While much remains uncertain about how RFK Jr.’s leadership will shape the healthcare sector, the new administration’s approach will likely evolve over time, informed by ongoing dialogue with these diverse stakeholders.
What can healthcare advertisers be doing now?
In the face of potential changes to advertising legislation, healthcare marketers should proactively adapt by focusing on strategies that ensure compliance while maximizing impact. Partnering with experts in the field who specialize in launching data-driven omnichannel campaigns is crucial. These partnerships can help navigate evolving regulations while leveraging data for precise planning, seamless activation, and robust measurement of campaign effectiveness. By integrating insights from digital, social, and traditional media, marketers can maintain a competitive edge, deliver value to their audiences, and remain agile amidst legislative shifts.
This article was co-authored by Ted Sweetser, advertising partnerships and strategy, PurpleLab and Lauren Kushner, head of healthcare, MiQ
