Decline in Pharma Rep Sales Force: What Clinical Companies Will Do Next

The long decline of drug sales reps isn’t over.  According to an article in WSJ’s Health Blog, numbers are supposed to drop from a high of 102,000 in 2007 to 75,000 (or less) in the next few years.  It’s the result of a double-whammy for clinical reps:  while companies are looking to cut costs in a difficult economy, doctors are restricting access in a big way.  One in 4 doctors works in a practice which refuses to see drug reps.  And 40% of physicians who will see pharma reps require appointments, which has risen sharply in a matter of months.

Even though revenues at Merck and Pfizer are rising, they’re still planning more layoffs.  Recent cost-cutting measures, consolidations, and product innovations are improving the bottom line, but the streamlining processes of the last few years are still going.

Physicians still want to see pharma reps, and drug companies are still convinced of the effectiveness of one-on-one sales rep visits, but the sales model and the sales rep’s job will require a more focused, technical, targeted, and value-filled approach.

In response to a changing market, and changing needs of the physician customer, major pharma companies are modifying revenue models from a reliance on a massive one-at-a-time “door-to-door” sales force to more of a hybrid revenue structure using internet tools and other technologies combined with a more educated, targeted sales rep with a stronger scientific and technical background.

Here’s a link to a terrific article called Managing the Crisis of Marginalization with a detailed discussion of what companies are doing, including Novartis’ regional model and AstraZeneca’s new sales and service model with significant structural changes to the traditional sales role that includes a solid self-service aspect augmented by a better-trained sales force.

What do you see pharma companies doing to retool their sales process?

(If you’re a pharma rep who’s willing to move on, I help pharma reps move into pharmaceutical device, medical supply, and other medical sales roles as a career consultant in pharma sales.  In fact, here’s a link to an audio piece from a pharma rep who transitioned to surgical sales with some career coaching help. )

Article courtesy of  Peggy McKee - Owner / Senior Recruiter at the nationally
recognized pharma and laboratory sales recruiting team of PHC Consulting.
© Copyright 2008 PHC Consulting | All rights reserved

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Decline in Pharma Rep Sales Force: What Pharmaceutical Companies Will Do Next