REDWOOD CITY, Calif., Oct. 21, 2025 (GLOBE NEWSWIRE) -- As momentum for direct-to-consumer (DTC) drug sales grows, a new survey from Model N, the leader in revenue optimization and compliance for life sciences and high-tech companies, reveals that 72% of consumers would be somewhat or very likely to use this type of service. Through this channel, patients can buy prescriptions directly from pharmaceutical manufacturers at a discount, bypassing traditional pharmacy and insurance channels.
The interest in DTC drug sales is underscored by ongoing affordability challenges – 40% of surveyed respondents reported skipping or delaying prescription fills due to financial concerns.
Price is the top factor influencing DTC purchases; nearly three-quarters said lower costs would make them more likely to purchase medication directly from a manufacturer. The level of interest in DTC was comparable across all income brackets. However, only 22% of those surveyed have used a DTC service.
Pharmaceutical companies are investing more heavily in this channel. In fact, some companies have recently announced agreements to participate in government-run DTC portals, as well as initiatives developed by the Pharmaceuticals Manufacturers Association.
“The direct-to-consumer channel is a promising step forward in how life sciences companies can expand patient access to medication,” said Bret Connor, Model N’s Chief Executive Officer. “At Model N, we empower the world’s leading manufacturers with innovative pricing, compliance, and revenue optimization solutions that support their efforts in bringing life-changing solutions to more people.”
Barriers to DTC adoption
Despite the willingness of consumers to use DTC services, 86% of consumers did express concerns about purchasing directly from pharmaceutical manufacturers. Considerations include:
- Problems with insurance covering the cost: 58%
- Delivery reliability: 38%
- How they check if a prescription is valid: 37%
- Lack of pharmacist consultation: 37%
“Direct-to-consumer purchases are treated as cash transactions, meaning insurance may not cover or reimburse these costs,” said Jesse Mendelsohn, Model N’s Senior Vice President, Professional Services. “For most insured patients, their copay or coinsurance could be considerably lower than the out-of-pocket cost through a DTC channel. However, the DTC option can be especially valuable for individuals who are uninsured, have high deductibles, or whose medications aren’t covered by their plans.”
Patients want price transparency
The survey found that 75% of respondents consider knowing medication prices before visiting the pharmacy somewhat or very important, and over three-quarters will shop around to find the best price. The most common methods include:
- Using price comparison websites/apps (GoodRx, etc.): 39%
- Checking with multiple pharmacies: 30%
- Asking my doctor: 30%
- Calling my insurance company: 26%
Drug pricing through traditional distribution channels is opaque. With fewer intermediaries involved, DTC pricing is more transparent.
For more information on how DTC will affect drug affordability, read this blog.
Survey methodology
Dynata conducted the survey in June 2025. The results included 1,000 online responses from adults aged 25+ across the United States.
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About Model N
Model N is the leader in revenue optimization and compliance for pharmaceutical, medtech and high-tech innovators. For more than 25 years, we have helped customers maximize revenue, streamline operations, and maintain compliance through cloud-based software, value-add services, and data-driven insights. With a focus on innovation and customer success, Model N empowers life sciences and high-tech manufacturers to bring life-changing products to the world more efficiently and profitably. Model N is trusted by over 150 of the world’s leading companies across more than 120 countries. For more information, visit www.modeln.com.
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