1999 Direct-to-Consumer Prescription Drug Advertising in U.S. Reaches $905 Million Through June; 43 Percent Increase Over 1998 Media Spending Levels.

LONDON--(BW HealthWire)--October 12, 1999--

IMS HEALTH (NYSE:RX) reported today that direct-to-consumer (DTC) prescription drug advertising in the U.S. continues its strong, double-digit growth, reaching $905 million for the first half of 1999. This represents a 43 percent increase over spending levels for the same period last year. IMS HEALTH is the world's leading provider of information solutions for the pharmaceutical and healthcare industries.

Television continues to be the medium of choice, accounting for 59 percent of all DTC spending for the first half of the year. The total DTC television spend was $529 million for the six months through June, up 68 percent from the same period in 1998. The top-spending brands in the TV advertising arena are the Claritin franchise, with $48 million spent in the first half of the year, followed by Propecia ($42 million); Meridia ($29 million); Nasonex ($29 million); and Flonase ($25 million).

DTC print advertising spending levels also increased during this period, totaling $370 million, or 41 percent of all DTC spending for the first half of 1999. This represents a 20 percent increase in DTC advertising through magazines and newspapers, compared to spending levels for the first six months of 1998. The top five print advertisers during this period are the Claritin franchise, with a $44 million print spend; Glucophage ($27 million); Viagra ($20 million); Zyrtec ($17 million); and Lipitor ($16 million).

Combined spending for DTC radio and outdoor advertising declined in the first half of the year. Spending in these categories was $4.7 million through June, down 40 percent from the same period the previous year.

Of the top ten DTC spenders, Schering-Plough holds the number one position, investing nearly $130 million on DTC advertising through June. Glaxo-Wellcome spent $114 million in the first half of the year, followed by Pfizer, with $100 million. (See Table 1 below for a listing of top DTC spenders and their media allocation breakout for the six months ending in June.) The top ten DTC spenders account for 79 percent of the industry's total investment in advertising to reach consumers.

Total promotional spending (personal selling and professional journal advertising) directed toward physicians and other prescribers by the pharmaceutical industry reached $2.6 billion through June, up 4 percent over the same period a year ago. Professional promotion accounts for 74 percent of all audited promotion dollars spent. (see Table 2 below).

IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries. With $1.2 billion in 1998 revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest pharmaceutical manufacturer information partner, with over 40 years' experience in the industry. Key products and services integral to customer day-to-day operations include: market research for prescription and over-the-counter pharmaceutical products; sales management information to optimize sales force productivity; technology-enabled selling solutions for sales and marketing decision making; and technology systems and information services that support managed care organizations. Additional information and previous press releases are available at the IMS HEALTH Web site: http://www.imshealth.com. -0-

                                Table 1
 Top-Spending Direct-to-Consumer Manufacturers: 1999 YTD through June
                        (dollars in thousands)

                           TV      TV   PRINT   PRINT  OTHER     TOTAL
                                 (% of        (% of   (Radio&     DTC
                                 total         total  Outdoor)   SPEND
                                 DTC $)        DTC $)

Total Market            $529,372   59 $370,519   41  $4,663   $904,554

SCHERING-PLOUGH CORP     $76,930   59  $50,465   39  $2,315   $129,710
GLAXO WELLCOME PLC       $89,253   78  $25,048   22    $146   $114,447
PFIZER INC               $45,621   45  $54,201   54    $498   $100,319
ASTRAZENECA PLC          $62,493   72  $24,036   28      $0    $86,528
MERCK & CO INC           $45,898   71  $18,891   29     $29    $64,818
JOHNSON & JOHNSON        $41,419   66  $21,163   33    $620    $63,203
WARNER-LAMBERT CO        $20,099   46  $23,716   54     $18    $43,833
PHARMACIA & UPJOHN INC   $20,306   55  $16,849   45      $0    $37,155
KNOLL PHARMACEUTICAL CO  $29,599   81   $7,098   19      $0    $36,697
AMERICAN HOME PDTS CORP   $8,292   23  $28,212   77      $0    $36,504

Source: IMS HEALTH and Competitive Media Reporting (CMR)

                               Table 2
Promotion Allocation by Audience and
Media Type, YTD June 1999

DTC PRINT              11%
DTC TV                 15%
DTC OTHER               0%
PERSONAL SELLING       66%
PROF. JOURNALS          8%