Wednesday, April 4, 2007

Pity the poor pharmaceutical sales rep

By Aaron Smith, CNNMoney.com staff writer

It's hard out there for drug sales reps--particularly if they work in places where gaining access to doctors is becoming increasingly difficult।

Take Boston, Glenn Abrahamsen, senior director of global analytics for drug company Schering-Plough says the city is full of medical groups with formal policies restricting the access that company reps have to individual doctors। "We weren't allowed to leave samples: not tissue boxes or anything," said Abrahamsen, "We weren't allowed past the receptionist।"

Such "closed door" policies are now common around the country, especially in Washington, Minnesota and Wisconsin, according to anecdotal evidence from drug sales reps and medical groups. The backlash--fueled in part by double-digit increases in advertising spending by Big Pharma--is turning the industry on its head. Sales reps are facing massive layoffs and falling incomes as commissions drop. Drug companies, meanwhile, are scrambling to come up with new ways to get their medications in front of the doctors who would prescribe them.

In one sign of the dislocation, Pfizer is in the process of laying off 2,200 sales reps, or about one-fifth of its U.S. sales force. Industry watchers expect rival companies will soon follow with cutbacks of their own.

Tuesday, April 3, 2007

Novartis suspends U.S. sales of Zelnorm

Financial Analysis: Novartis will survive Zelnorm

By STEVE MITCHELL

WASHINGTON, April 2 (UPI) -- Novartis suspended U।S। sales of Zelnorm after the irritable bowel syndrome drug was found to be associated with an increased risk of heart problems and stroke, but analysts think the move will be only a slight bump for the pharmaceutical giant and is actually more reflective of an increasingly cautious Food and Drug Administration.

Nigel Birks, an analyst with Dresdner Kleinwort, said the Zelnorm suspension is "obviously going to have an impact on Novartis," noting that the drug was slated to bring the company more than $1 billion in 2012.

"It does reduce this year and going forward some of the company's anticipated growth and earnings," Birks told United Press International.
But ultimately, the long-term outlook of the company is positive and it should recover after taking a hit in the short term, he added.

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