Free Newsletter
Even productive reps will be obsolete, PwC says
Free newsletter via e-mail
Tools
Some more tough news for pharma reps today: A little over 10 years from now, the drug sales rep as we know him or her will be "obsolete." That's the assessment of consulting firm PricewaterhouseCoopers, which also calls the Big Pharma sales model "increasingly ineffective."
As you know, drugmakers almost everywhere are shrinking their sales forces as part of enormous cost-cutting programs. And to be fair, the sales ranks have been a big target; the number of reps swelled to 100,000 in 2005 from around 50,000 in 1996. Plus, PwC found that companies were getting less revenue per sales detail; between 2004 and 2005, that dollar amount dwindled by 23 percent, CNBC reports.
Still, it's tough to hear that you're not only ineffective but nearly obsolete. Reps can take comfort in the fact that it's nothing personal. The entire sales model is at fault.
And sales folks at some firms--the ones who deliver the most revenue per dollar of SG&A--might want to congratulate themselves. According to an analysis posted at BNet, Gilead Biosciences wins the sales-productivity prize. Teva Pharmaceutical Industries, Genentech, Sanofi Aventis and Abbott Laboratories round out the top five. The least productive, dollar-wise? Sepracor reps.
- see the PwC story at CNBC
- check out the BNet report
Related Articles:
Whose sales reps are No. 1?
More docs tell pharma reps to keep out
Analyst: Contract sales reps rule
As rep ranks thin, doc satisfaction goes up
More stories about Pharma sales reps
Comments
By Roxanne Allaire | Posted 10:30pm | February 25, 2009
Sadly the pharma sales model has been at fault for the last five years or more. As a former biopharm rep I can attest to the waste: time, money, time and money! Solution: Creative and cost-effective "pull" marketing strategies using new media to draw quality physician leads, and a small number of product consultants to follow up with even more educational value. No more running in and out of physician offices like a door-to-door salesperson praying on luck to catch a glimpse of the doctor in the hallway because he/she had been stalked by 8 reps earlier in the day! The cash that could still be in Pharma's bank account right now had they acted on this trend earlier...
By Anonymous | Posted 2:54pm | April 30, 2009
The problem with the pharma industry is it is dominated by those with business backgrounds and not those with healthcare backgrounds. When marketing becomes more important than science, the system gets eroded.
By Anonymous | Posted 1:30pm | July 31, 2009
Couldn't agree more with the above poster. I worked in Pharma sales right out of college and it was the place I thought I wanted to be. Only lasting a little under a year, I'm at the conclusion that the job does not add much value and is increasingly becoming outdated. Any industry that feels it has to force itself on their "customers" only alienates itself and adds to the already poor public perception. In my short time in the industry I can attest to the excess in waste and sometimes disillusioned arrogance that seems to permeate the industry. It defintely takes a certain person or you need to become a certain person to thrive. I worked in healthcare through college and am strongly considering going back to school to become a physician assistant and perhaps having a chance to meet my ex-manager at her best. Honestly if you are true to your profession as a healthcare practitioner you do not belong in pharmaceutical sales.
By Anonymous | Posted 12:21pm | August 6, 2009
After 10 very successful years as a Pharma Rep and now searching for another career, I'm finding it very difficult to transfer my experience into another industry. Even in other industries, many specifically DO NOT want sales people w/pharma experience or no more than a few years.
Any suggestions on where X Pharma Reps are finding new careers much appreciated!
By Anonymous | Posted 10:26pm | August 27, 2009
I think you might try selling custom shirts and suits. Email me at rick_stamos@yahoo.com
By Anonymous | Posted 12:44am | September 9, 2009
Other Suggestions:
Professional Food Order/Delivery (Waitress)
Bull*%!# Artist
Driver (any sort)
Honestly the job is for the most part USELESS and the profession is full of jackasses
Post new comment
Paid Research Reports
- Stakeholder Opinions: Vaccines in Emerging Markets (Asia) - Opportunities in China, India, South Korea and Taiwan
- Big Pharma Performance Before, During and Beyond the Global Recession
- Optimizing Lifecycle Management: Maximizing commercial lifespan through label expansion and combination products
- The CRO Market Outlook: Emerging markets, leading players and future trends
- Pharmaceutical Sales Force Effectiveness Strategies
- Commercial Insight: Influenza Vaccines and Antivirals - The pandemic's long-term impact
