Pfizer's Direct-To-Consumer Model Faces Scrutiny From US Senators

Benzinga · 4d ago

In August 2024, Pfizer Inc (NYSE:PFE) introduced the PfizerForAll digital platform in collaboration with UpScriptHealth, Alto Pharmacy, and Instacart.

In a letter addressed to UpScriptHealth CEO Peter Ax on Tuesday, senators expressed concern about the financial relationship between Pfizer and UpScriptHealth, given its potential implications for the federal Anti-Kickback Statute (AKS).

Four senators—Richard Durbin, Elizabeth Warren, Peter Welch, and Bernie Sanders—signed the letter.

The letter states that the PfizerForAll program, funded by the drugmaker, seems designed to direct patients toward specific drugs, which could lead to unnecessary prescriptions and higher costs for federal health care programs.

Benzinga contacted Pfizer and UpScriptHealth for comments regarding the letter.

The letter notes that pharmaceutical companies, including Pfizer, spend approximately $6 billion annually on Direct-to-consumer (DTC) advertising.

The American Medical Association stated, “Direct-to-consumer advertising inflates demand for new and expensive drugs, even when these drugs may not be appropriate.”

Citing a study, the letter adds that more than two-thirds of drugs advertised on television were considered “low therapeutic value.”

The Government Accountability Office review found that TV-advertised drugs made up 58% of Medicare’s total prescription drug spending from 2016 to 2018. For instance, direct-to-consumer ads contributed over $886 million to Medicare spending on Pfizer’s Xeljanz in 2022.

A patient who visits Pfizer’s website and then has a telehealth appointment with a prescriber selected by Pfizer is much more likely to request Pfizer’s medication. Additionally, the letter states that the prescriber may be incentivized to prescribe such medication, whether or not it is medically necessary or clinically appropriate.

The senators have asked Pfizer to respond by April 15 regarding the nature of its financial ties with UpScriptHealth.

Similar letters were sent in October 2024 to Eli Lilly And Co (NYSE:LL) and Pfizer, demanding answers about the pharmaceutical companies’ recent move to establish new DTC telehealth platforms. 

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