J&J Finds More Stakeholders Are Involved In Prescription Decisions And Thus Less Detailing Is Needed - And Eliminates 900 Pharma Sales Positions
This article was originally published in The Pink Sheet Daily
Johnson & Johnson, like its competition, plans to respond to a changing health care environment by rolling out a new commercial model that reduces emphasis on detailing to doctors.
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With the traditional pharmaceutical commercial model in disarray, companies are looking for new approaches to maintaining their competitive position. They're talking about--and in some cases implementing--"new commercial models," which rely heavily on reorganizing sales and marketing organizations by region, decreasing emphasis on one-on-one physician relationships, and paying more attention to building business-to-business relationships with diverse stakeholders, notably payors-including public and private payors and employers--and patient advocacy groups.
Faced with growing budgets and declining effectiveness of commercial spending, most large companies have embarked on the next wave of significant commercial changes. But most of these efforts don't go far enough to address the rapid and fundamental changes in the stakeholder landscape which have knocked pharma dramatically out of alignment with its stakeholder base. The article describes ten priorities for drug companies to align their organizations with these new realities - including requirements for companies to partner with payors and providers in new ways, and make resource decisions much more selectively to focus on the stakeholders who really matter. Nonetheless, these changes won't have their full effect without a more fundamental rethinking of the industry's value proposition, taking into account not only product value, but the services and the customer experience offered to all stakeholders.
Novartis is joining the horde of pharmaceutical companies that are revamping their sales and marketing organizations in response to a U.S. market that is rapidly changing, at varying paces in different regions