We have analyzed the economic policies and factors that impact insurance companies, providers, and the hospital industry. The economics of the pharmaceutical industry. Marketing accounts for a much larger portion of the expenses in the pharmaceutical industry than in other healthcare industries. The FDA lifted restrictions on TV ads for prescription drugs in 1997, allowing manufacturers to advertise drugs without including lengthy disclaimers explaining the often numerous side effects. How has this regulatory change affected the market for pharmaceuticals and why is so much money spent on marketing drugs rather than on marketing surgery or psychotherapy?