Decline in Pharma Rep Sales Force: What Medical 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 Seventy five,000 (or less) in the next few years.  It’s the result of a double-whammy for medical reps:  while companies are looking to cut costs in a difficult economy, doctors are restricting access in a major 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 pharmaceutical reps, and drug companies are still convinced of the effectiveness of one-on-one sales rep visits, but the sales model and the revenue rep’s position will require a more focused, technical, targeted, and value-filled approach.

In response to a changing market, and changing needs of the physician customer, big pharma companies are modifying revenue models from a reliance on a huge one-at-a-time “door-to-door” revenue force to more of a hybrid sales 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 ready to move on, I help pharma reps move into clinical device, clinical supply, and other clinical revenue roles as a career consultant in pathology sales.  In fact, here’s a link to an audio piece from a pharma rep who transitioned to surgical revenue with some career coaching help. )

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

Related posts:

1. Decline in Pharma Rep Numbers: Changing Practices of Doctors The news for pharmaceutical reps is not fine. Top pharma…
2. Top Twenty Clinical Company Changes Over the Last 18 Months: How They Affect Pharmaceutical Sales Reps In 2008, those were the Big Twenty clinical companies: Top…
3. “I just got laid off by a large Pharma company and would like to interview for the analytical capital equipment sales career opportunity you’ve advertised”. It seems that every week someone in our office has…

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