HAS THE GOLDEN ERA OF PHARMACEUTICAL SALES COME TO AN END?

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HAS THE GOLDEN ERA OF PHARMACEUTICAL SALES  COME TO AN END?

Fact: The Pharma indsutry shed 50,000 jobs in Nationwide in 2010 alone!

Some industry veterans and observers argue that the golden era of pharmaceutical sales CAME TO AN END in the 80's when the industry underwent the shift from the era of the Gentleman Detail man to the era of the Cheerleading Detail girl and the overworked, under-paid physician. Add in managed care and you have for a powerful industry shifter

In this post I will discuss some of those shifts and why I believe the Golden Era of the pharmaceutical sales rep has come to an end in certain states/territories.

I have a former counterpart, who often shared his Golden era experiences with me from his stint as a Pfizer rep in the 1980's.

"Those were the days..." he would say. He shared with me how back in the 80's, physicians viewed their drug reps as friends and trusted advisors. Physicians and reps golfed together, exchanged holiday cards/gifts and generally enjoyed a mutually beneficial relationships. He recalled having the freedom to take doctors to Red Sox-Yankees games and ski trips.

One of the contributing factors to the good ol days was the 1 on 1 relatioship that developed between doctor and their drug rep. In those days there was not 6 reps from each company carrying the same product line. By 2005 big pharma was too deep into the excess of the "Share of Voice" model. Although this model led to increased revenues of blockbuster brands in short run, it also led to the decline of access and effectiveness of pharm reps in the long run.  All you have to do is read the message boards on Cafe Pharma to hear why many drug reps are dissatisfied with their roles in 2011. Each Major Pharma company had 1 rep who carried their whole product line and represented the Company to the physician. You were expected to be an expert on your company's entire major product line and you were. In 2011, this simply does not exist as much any more.

Why has the Golden Era COME TO AN END?

If you talk to reps in certain Southern and Midwestern states, as well as states that have not been heavily penetrated by cost containment/Managed Care they will tell you that The Golden Era of Pharmaceutical Sales has not come to an end. Don't misunderstand me, I still know many reps who are still earning $75K-100K+ a year as pharmaceutical sales reps and enjoying job satisfaction. BUT...There is also a preponderance of evidence to the contrary.

Proliferation of MANAGED CARE

It's no secret that healthcare costs have been rising at double digit rates for the past 10 plus years. Healthcare costs are spiraling out of control. Drug costs contribute greatly to the increases in overall healthcare costs. Because of this, drug companies have been under increasing pressure to take action to address pharmaceutical costs. The pressure to lower healthcare costs was not as prevalent during the "Golden Era" of pharmaceutical sales.

Just because the Golden Era seems to have come to an end does not mean that being a pharmaceutcial sales rep is still not a lucrative and rewarding job. Like many other industries the pharmaceutical industry is going through some major shifts. But, as I stated above many reps are still earning $100K+ a year as pharmaceutical sales reps. The trend seems to be shifting back to having 1-2 reps per company and going for quality sales interactions with physicians vs. quantity.

What are your thoughts on this? Do you believe the Golden Era of Pharmaceutical Sales has come to an end? If so, why? If not, why not? Would love to hear your thoughts.