Trump warns thousands of pharma companies over "deceptive ads"

Zoom in: In addition to the cease-and-desist letters to companies that it says have "deceptive ads," the FDA said in a statement that it's sending "thousands of letters warning pharmaceutical companies to remove misleading ads."

• And the Trump administration is closing a 1997 "loophole" that allowed drug ads to "footnote vital information" by redirecting consumers to websites and other sources for full details about pharmaceutical products, per a statement from HHS and FDA.
• Some drug companies had used the loophole "to conceal critical safety risks in broadcast and digital ads, fueling inappropriate drug use and eroding public trust," according to the FDA's statement.

What they're saying: "Pharmaceutical ads hooked this country on prescription drugs," per a statement from Kennedy, who in November suggested he wanted to "ban pharmaceutical advertising."

• "We will shut down that pipeline of deception and require drug companies to disclose all critical safety facts in their advertising," he added in the statement.

Between the lines: Because Trump doesn't have authority to ban drug ads, he seems to be trying to make it "death by disclosure and rulemaking" that may not survive legal challenges, wrote Raymond James analyst Chris Meekins in a note.

• The length of ads will increase if companies have to disclose every side effect, driving up company costs. The cease-and-desist letters will also create more legal and regulatory risks, though it's hard to know what the FDA will choose to target, Meekins said.
• Companies will have to decide whether to sue and risk blowback from the administration in areas like Medicare drug price negotiations.
• "No company wants to be the next Harvard," Meekins said.