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The Wall Street Journal is finally "officializing" what you pharma sales reps have known for some time: the drug sales world is positively scary. We all know the many drugmakers that have slashed their sales forces in recent months---Merck, Schering-Plough, GlaxoSmithKline, Wyeth, Sanofi-Aventis, and now (reportedly) a big-time axing over at Pfizer. And we expect that trend to continue rather than reverse.
According to the WSJ, the size of the drug industry's U.S. sales force has declined by 10 percent to about 92,000 from a peak of 102,000 in 2005. ZS Associates, a sales strategy consulting firm, predicts another drop--this time of 20 percent--to as low as 70,000 by 2015.
Not encouraging numbers. And it's still less encouraging to hear, for instance, that Merck ran a pilot program last year under which regions cut sales staff by up to one-quarter and continued to deliver results similar to those in other, uncut regions. This year, that program may go national. Eli Lilly is rolling out some pilot programs of its own, designed to "improve sales-force productivity," and we all know what that means. Those pilots are destined for nationwide expansion, too.
- read the WSJ piece
Related Articles:
Ranks of sales reps thinning
1,200 Wyeth reps out of work
Pfizer mulls massive sales-rep cuts
Sanofi to shed up to 650 reps
GSK to cut 1,800 U.S. pharma reps
Schering to axe 1,000 reps
Comments
By Anonymous | Posted 10:32pm | February 17, 2009
wyet just eliminated the entire long term care division (formerly women's health care). total workforce reduction = 57. no warning. notified on Feb 12 that this is last work day. Payroll continues intil Feb 27, 2009.
By Anonymous | Posted 8:09am | February 25, 2009
There is no doubt that companies were way over staffed with representatives and it is ridiculous to think that with all of the other mitigating circumstances (generic market growth) that the "arms" race could continue with so many people from the same company calling on the same doctor selling the same product. Talk about overkill!
Returning to the way pharmaceutical sales were in the 70's may work well...larger territories and more interaction with offices and staff and they actually appreciate your visit and guess what, you do not have to be a caterer any more!
By Anonymous | Posted 10:40pm | January 24, 2010
The Corporate Suits that bought into ZS analysis (read, sell more consulting services) and fell for metrics like "share of voice" rather than market share created this mess. IF Pfizer, et. al., had not flooded offices with reps, IF Merck had not ridiculous with high price dinners and sham "consultant" trips, IF GSK had not badgered teaching hospitals with KOL bribes, this industry may have retained some respect in the medical community and with the public at large.
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