Nine out of ten pharma companies in the US and Europe made significant cuts to its pharma sales force in 2010.
Results from Cegedim Strategic Data’s (CSD) 2010 audited Pharmaceutical Marketing Expenditure show that several companies in the regions made cuts of up to 10% of its sales force.
Christopher Wooden, Vice President for the CSD Global Promotion Audit, says there was a “broad trend in seeking scale efficiencies in the major western markets” last year.
However the news was more positive in China, Latin America, and Japan where many of the leading companies added new sales representatives with double digit growth recorded.
The report also revealed that worldwide spending on sales force and other marketing channels increased by 1.5% to $91 billion, compared to 2009, after an increase in spending in China, Japan and Latin America.
The amount of money spent on meetings and other events increased by 5% worldwide, whilst the use of events was up significantly in Japan (+14%), China (+19%) and Latin America (+18%). Unsurprisingly, spending was down in the US by 17% and Europe saw a decline of 7%.
“In emerging markets, the industry has quickly adopted the use of meetings and events as an efficient way to achieve high quality interaction with a maximum number of healthcare professionals,” said Mr Wooden.
“Among mature markets, Japan was a major exception with increased spending through 2010 despite flat reported sales. With patent expiry, limited R&D pipelines and accompanying industry consolidation, sales force and marketing in the mature western markets will likely be streamlined over the next few years. The future is clearly seen in Asia and Latin America.”
CSD audits pharmaceuticals marketing expenditure in more than 30 countries tracking sales force, sampling, meetings/events, clinical trials, DTC, e-promotion, print advertising and other marketing channels. More than 200,000 healthcare professionals report their exposure to industry promotional activity to help generate the report.