Pf’s Iain Bate examines how contract sales organisations are taking their place among the industry heavyweights.

There can be little doubt that pharmaceutical employees – in particular sales and marketing executives – have taken some metaphorical hefty blows in recent times. All of pharma’s biggest heavyweights have announced ‘austerity’ measures as part of widespread job cuts across the majority of divisions in recent times.

Whilst pharmaceutical CEOs have enjoyed champion pay rises, the humble employee at ground level has been unable to duck and weave away from the dreaded knockout blow. As a result, the job market has been on the ropes. However, candidates searching for a career in the medical sales industry do not have to throw the towel in just yet.

The employment market has suffered many bumps and bruises in recent years – but Contract Sales Organisations (CSOs) are leading the fightback. Now regarded as a leading contender for those looking for a prolonged career in the medical sales industry, CSOs continue to punch above their
weight in a challenging environment.

Pf spoke to four leading CSO companies to provide a blow-by-blow account of how contract organisations have boxed clever in recent years. Why have they gained in popularity despite the employment market suffering a bloody nose? And what does the future hold for the contract sales movement?

The gloves are off

In the modern working environment, when uncertainty accompanies everyday challenges, the flexibility CSOs offer clients is a major attraction. “The fundamental driver is the requirement for an increase in flexibility from our biopharma customers,” says Helen Molloy, HR Director at Quintiles Commercial. “This is nothing new – but what has changed is the nature of that flexibility. It’s not just about numbers of people, it’s about expert teams with specific skill sets and evidence tailored address local priorities.

“Customers are increasingly looking to partner with us to help navigate challenges around proving cost effectiveness and long term value of a drug to a wider range of stakeholders. We are moving away from what has historically been seen to be the fundamental core of our services, and into much more specialised areas.”

Flexibility is certainly an attractive proposition for clients who have slimmed down sales teams yet still require the prowess to impress customers. However, flexibility isn’t the only factor driving CSO growth. Specialist skills are now required by clients to outwit the opposition. “Contract sales organisations are moving away from large-scale build, high noise proposition and are becoming much more specialist,”
says Emma Busby, Project Director at CHASE. “Organisations are demanding to have specialist skills and capabilities either to be equitable to their teams, or, in most cases, to offer more opportunity and more value within their teams. Their key objective is to heighten the level of capability that they have got on their headcount team.”

Pharma’s increased reliance on contract methodology is now reflected in the number of candidates turning to CSOs to develop a career in UK medical sales. “CSOs are becoming the only way into the industry,” says Emma. “We work with many blue-chip companies to provide an influx of trainees every year. Again those people go through organisations and develop. The trend went away from that for a few years, but it’s definitely coming back now. Companies recognise they need high-quality sales engagement. We can regurgitate skills but fresh attitudes and capabilities coming in will actually challenge the status quo.”

At a time when, as far as job security is concerned, pharmaceutical representatives fear the next barrage of punches, CSOs are doing more than ever to provide a shot at the big time in the industry. David Alexander, Contract Business Unit Team Leader at Star, says there are a number of reasons why CSOs have gained
in popularity recently. “Security, variety and skill development are key,” he said. “Working for a CSO
means people can move from one assignment to another and gather experience with different companies,
in different therapeutic areas and with different customers over time. Transferable skills and flexibility
are important qualities in today’s environment and working with a CSO will help people profile both.”

Swapping gloves

That value is also being recognised by clients seeking to boost sales at various stages of a brand’s life cycle. With the industry well on the way to manoeuvring itself away from the traditional sales model to a sophisticated fighting-fit key account approach, contract sales organisations are perfectly placed to augment teams or, in some cases, replace them. “A CSO can help do both,” says David. “It can either enhance a team or, if necessary, it can replace it. You can either have a bolt-on campaign, where contract reps target specific areas in fixed time periods, or, you can replace an entire team with a CSO key account team, enabling flexibility and resource in particular areas of the UK. This allows clients to be much more outcomes-focused.”

The next round

But what next for contract sales organisations? Will pharmaceutical companies decide to completely
shed their entire headcount and outsource functions to specialist organisations? Andy Holgate, Business
Unit Director from Ashfield In2Focus, believes this may be the case. “Contract sales organisations are expanding into new areas,” he says. “The model for CSOs in the next 20 years could be where pharmaceutical companies simply concentrate on research and development and strategic marketing and finance. Contract sales organisations will, potentially, then do all of the rest. I think that is the trend that CSOs are driving towards.

“We may be in a bit of a perfect storm at the moment where pharmaceutical companies, many of whom are being squeezed from above and are tinkering around the edges, are considering outsourcing services in areas where they would never previously have allocated external resource. Contract sales organisations are extremely good at being able to help pharma companies, and other clients, differentially resource people when and where they want them and when and where they don’t, be that in sales or other value-adding roles.”

In an austere environment when pharmaceutical companies are fighting against a whole host of external
pressures, it’s difficult to see how contract sales organisation will fail to grow in the coming years. The powerful combination of being an inviting proposition for individuals seeking a career in medical sales industry, and strategic allies for companies in need of flexible and specialist commercial expertise, CSOs are rapidly establishing themselves among the industry heavyweights.

The FDA has approved Cordis Corporation’s Empira and Empira NC RX PTCA dilatation catheters for the treatment of coronary artery disease.

Both balloon catheters are designed to allow cardiologists to open patients’ narrowed coronary arteries during angioplasty procedures.

Dr Campbell Rogers, Chief Scientific Officer and Global Head of R&D at Cordis, said that the company “worked closely with physician-customers and incorporated their feedback into the design of these next generation devices. We believe the unique design of the Empira Balloon Catheters will meet physicians' needs and has the potential to improve patient outcomes”.

The two medical devices bring several design and technology alterations to Cordis’ portfolio of Empira balloon catheters. They feature the company’s next generation Duralyn Flex balloon material, which is 50% more flexible than the material used in the current Fire Star and Dura Star RX PTCA dilatation catheters, to improve crossability and recrossability, the ability to pass through a lesion.

Cordis Corporation is a Johnson & Johnson company, and develops and manufactures interventional vascular technology. The company works with interventional cardiologists, radiologists and vascular surgeons to treat patients with vascular disease.

The products are expected to be launched for sale in early 2012.

Takeda Pharmaceutical Company has created several new positions as part of its “Transformation into a New Takeda”, restructuring the company’s business operations.

The new roles include Chief Medical and Scientific Officer (CMSO) and Chief Commercial Officer (CCO).

The CMSO is set to replace the existing post of Chief Scientific Officer, to be filled by board member Dr Tadataka Yamada, a medical doctor and scientist with strong experience in pharmaceutical R&D.

The CCO will be responsible for the company’s global sales structure, replacing existing positions in International Operations in the US, Europe and North Asia.

Takeda’s Chief Executive Dr Frank Morich will claim this position, who will lead sales strategies in the US, EU and key emerging markets.

The restructuring of the company is said to relect Takeda’s recent acquisition of Nycomed, which the firm described as “another significant step towards globalisation”.

Takeda fully acquired Nycomed in October in a cash deal worth €9.6 million.

Bristol-Myers Squibb and Gilead Sciences have signed a licensing agreement to develop and commercialise a potential fixed-dose combination single pill for the treatment of HIV.

The combination would include BMS’ protease inhibitor Reyataz (atazanavir sulfate) and Gilead’s pharmacoenhancing agent cobicistat.

Elliott Sigal, Executive Vice President, Chief Scientific Officer and President, R&D, BMS, says the pill has the potential “simplify HIV therapy” and address unmet needs for innovative treatment options.

The combination is currently being studied in Phase II and Phase III studies in HIV-1 treatment-naive patients.

Reyataz is a prescription medicine used in combination with other medicines to treat people aged 6 years of age and older who are infected with HIV. Gilead’s cobicistat is a boosting agent that increases blood levels of certain strains of the virus.

Under the terms of the agreement, BMS will be responsible for the worldwide formulation, manufacturing, development, registration, distribution, and commercialisation. It will pay Gilead an undisclosed royalty based on the annual net sales of the product when released.

“This collaboration with Gilead builds on Bristol-Myers Squibb’s longstanding commitment to develop medicines that have the potential to provide meaningful benefit to HIV patients, specifically aiming to enhance treatment options,” said Mr Sigal.

Gilead will retain the sole rights for the manufacturing, development and commercialisation of cobicistat as a stand-alone product and for any future combinations with other agents.

Boehringer Ingelheim is to work with Pantheon to develop two projects worth over $18 million involving combination drugs to treat type II diabetes.

Mark Kontny, Chief Scientific Officer at Pantheon, said: “I am very gratified that Boehringer Ingelheim recognises our expertise in formulating, scaling and successfully launching complex formulations such as these molecules. It is this kind of support and recognition that has enabled us to develop our market leading position in pharmaceutical development services.”

The projects are set to span over a three year period.

Patheon is a global provider of pharmaceutical services, manufacturing at ten facilities and nine development centres across North America and Europe.

Cubist Pharmaceuticals has appointed Dr Jennifer Jackson as its new Senior Vice President of Regulatory Affairs.

Dr Jackson will oversee all aspects of Cubist’s Regulatory Affairs, providing oversight for all regulatory matters, reporting to Dr Steve Gilman, the company’s Executive Vice President of R&D and CSO.

Dr Gilman said: “Jennifer’s extensive international experience, collaborative nature, and focus on disciplined execution will help us as we advance our exciting pipeline in the years ahead.”

Dr Jackson joins Cubist from Biogen Idec Hemophilia, where she worked as vice president of Regulatory Affairs and Clinical Compliance. She has also worked at Vertex Pharmaceuticals and Bristol-Myers Squibb.

Cubist Pharmaceuticals is a biopharmaceutical company focused on the research, development and commercialisation of pharmaceutical products that address the unmet medical needs in acute care.

Global pharmaceutical contract sales revenues will reach $5.24bn in 2015, a new report predicts.

The World Pharma Contract Sales Organisation (CSO) Market 2011-2021 found that revenues will continue to grow over the next decade as pharma companies look to cut costs.

Richard Lang, pharmaceutical industry analyst, says pharmaceutical companies are turning to CSOs for “new approaches to sales, targeting doctors and healthcare payers”.

The report by Visiongain found that supplying sales teams was currently the largest source of revenue for outsourcing companies in 2010, accounting for 80% of the market.

Pharma companies based in the US, UK and Japan will continue reduce sales forces, the report predicts, in coming years, providing an opportunity for contract sales companies and sales teams.

An increased emphasis on speciality drugs will also require new procedures and expertise for CSO sales teams, the report says, with e-detailing, tele-detailing and medical science liaison having a greater prominence over the next ten years.

“Face-to-face detailing of healthcare professionals is still the most common pharmaceutical sales technique in many markets,” said Mr Lang. “However, with increasingly busy schedules, more and more doctors are implementing 'no-see' policies for sales reps.

“The drive to cut rising healthcare costs will increase the influence of payers in future prescribing decisions.”

The demand for contract sales services is also expected to continue to grow in emerging markets such as China and India, according to the report’s predictions, with companies seeking to enter or expand their sales field-force presence in these regions and rely increasingly on the local knowledge and expertise CSOs offer.

Orexo has appointed Peter Edman as its new Chief Scientific Officer, responsible for the company’s research and development division.

Peter currently works as CSO and Head of Research and Development at Sobi (Swedish Orphan Biovitrum).

Anders Lundström, President and CEO of Orexo, said: “Peter Edman has extensive experience in the areas of research and development and leadership. Both his skills in early drug discovery and drug development in late stages will be of great value to Orexo.”

Peter has previously held positions within R&D at Pharmacia and AstraZeneca.

He commented: “It will be very exciting and rewarding to develop Orexo's projects into innovative new drugs that can address significant medical needs.”

CHASE Recruitment has appointed Kirstie Justice as Recruitment Consultant, responsible for the East and West Midlands area.

Kirstie originally trained as a teacher before working for Eli Lilly as a Hospital Specialist. She has worked for CHASE previously in June 2010 to cover maternity leave.

CHASE provides specialist recruitment services and contract sales organisation (CSO) solutions to pharmaceutical, biotechnology and healthcare companies in the UK.

Merck has appointed Cuong Viet Do as Chief Strategy Officer, responsible for enterprise strategy and building connections between the franchises of the company.

He will report to Merck’s President and CEO, Kenneth C. Frazier, who says: “As the health care environment continues to evolve, Cuong's expertise in developing and implementing global business strategy will help position Merck to deliver long-term value.”

Mr Do has been serving as Senior Vice President of TE Connectivity, formerly Tyco Electronic, since 2009. He also currently sits on the Board of WuXi AppTec, a pharmaceutical company that outsources R&D.

The new CSO said he was looking forward to “working with the exceptional employees at Merck to further define and implement strategies that can deliver on the company's commitment to become the world's leading health care company”.

He succeeds Mervyn Turner, who retired from the company this summer.