Johnson & Johnson (JNJ), Forest Laboratories, Inc. (FRX), Pfizer Inc. (PFE): Pharmas Spending the Most to Catch Your Doctor’s Eye

Pharmaceutical companies aren’t banking on doctors prescribing their drugs just because they see an ad in a professional journal. Enormous sums are allocated to directly calling on physicians. If you have ever seen a person bringing in a basket full of snacks for the staff at your doctor’s office, that’s direct-to-doctor spending at work. Research firm Cegedim estimated that total spending on promoting drugs amounted to nearly $28 billion in 2010. The majority of that amount isn’t related to advertising.

Companies that spend the most on marketing don’t always have the best market returns. While J&J and Forest Labs have beaten the S&P 500 in year-to-date returns, Pfizer Inc. (NYSE:PFE) and Ironwood trail the index.

If you’re an investor, though, you want the companies in which you own shares to be doing everything they can to cost-effectively promote their products. So if you’re investing in drugmakers, the best way to fatten your own wallet just might be tied to how well those pharmaceutical firms get the attention of doctors.

The article 5 Pharmas Spending the Most to Catch Your Doctor’s Eye originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. 

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