Transforming Pharmaceutical Sales
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Pharmaceutical sales representatives, along with R&D scientists have been the largest casualties of recent downsizing that has been sweeping the life sciences industry. Increasing regulatory scrutiny, decreasing numbers of new drug approvals and an increasing reliance on e-based technologies to sell drugs have almost rendered the traditional pharma rep obsolete. Flavia Villela, a blogger and former pharma rep has written an interesting article about her impressions about the next generation of pharmaceutical sales representatives.
A New Era of Pharmaceutical Sales Professionals
I have been participating and sharing my thoughts in discussions about pharmaceutical sales professionals related to performance and customer satisfaction. I am also actively participating in discussions about creation of “pharmaceutical sales certification” program. My goals are to share ideas, experiences and provide insights into improving the quality and performance of qualified pharmaceutical sales professionals who will be able to effectively establish rapport with health care providers consistent with pharmaceutical industry expectations and requirement.
While often vilified, pharmaceutical sales reps play important and often pivotal roles in the healthcare industry. For example, pharma reps often act as drug information consultants, facilitators of customer development, sources of reliable customer information, vehicles of promotion and liaisons between drug companies and their customers. Because of this, it is vitally important that sales reps be highly qualified professionals with broad skills and extensive knowledge of the healthcare industry. Also, increasing healthcare costs coupled with downward pricing pressures suggest that today’s sale reps must be highly efficient and cost effective.
Pharmaceutical Sales Professional: “The Old versus “New Model”
It is well established, that in the past, it was not uncommon for different sales reps from the same company to repeatedly call on a doctor for the same product. This primarily resulted from an over ambitious hiring trend that increased the number of sales reps but failed to increase the number and quality of drug sales. Consequently, over the past few years, pharmaceutical companies began laying off large numbers of sales employees despite the fact that generic drug sales were rapidly increasing and beginning to steal market share from branded products.
The poor performance of many of these reps could be directly attributed to a lack of qualifications. Nevertheless, despite the massive layoffs, there are still thousands of unqualified sales reps who continue to work in the drug industry. For some reason, many pharmaceutical companies decided to retain employees who I call “old model reps” who simply drop off samples/reprints to healthcare providers and deliver a “canned” product message that they learned during sales force training. Many of these reps don’t engage their customers in detailed product discussions, mostly because they don’t really understand the products themselves. Further, many of these reps got into the business because they were attracted to the flexible hours, high salaries and bonuses, a company car and other benefits associated with pharmaceutical sales reps. More importantly, while many of these old model reps had strong sales backgrounds, they generally were lacking in an understanding of science and medicine. In other words, they really didn’t understand the products that they were trying to sell to customers. While this might have been acceptable for small molecule drugs, it certainly won’t suffice when it comes to biotechnology products which are inherently more complex in their mode of actions and use. To that end, I believe the so-called “new model” or next generation of sales representatives should be required to have a strong medical or scientific background e.g., such as a bachelor/masters in sciences, nursing or medically-related field to provide a firm understanding of the inner workings of the healthcare industry. However, it is important to note, that “old model employees” who are willing to learn (and have the ability to grasp new medical concepts) should be retrained and encouraged to remain in the “new model” sales force.
Despite the massive layoffs, many companies continue to hire “old model” employees. One candidate recently contacted me and shared with me his experiences with a medium-sized Japanese pharmaceutical company. The candidate is a medical professional, has a nursing degree and previous experience in the therapeutic area advertised with the sales position. His background and training enabled him to garner a face-to-face interview with a district manager of the company. Although the interview was seemingly going well, at one point during the meeting, the district manager told the candidate that he was overqualified for the position. In other words, he was either “too smart”, “too old” or too set in his ways to be hired. Not surprisingly he didn’t get the job.
Shortly after being rejected, the candidate read about a new initiative being undertaken by the company to improve the quality of its sales force by focusing on scientific/medical backgrounds rather than prior sales experience or credential. While it isn’t clear why the candidate described above didn’t get a job with this particular company, his recent pharmaceutical sales job hunting experience isn’t unique—it is being repeated over and over again throughout the industry. This begs the question: why are so many drug manufacturers electing to retain “old model” sales reps—despite their apparent lack of scientific/medical qualifications—and willing to pass on seemingly well qualified candidates who apparently represent the “new model” sales rep that pharma says it wants?
What do you think?
