GSK Launching Vesicare, Boniva Without Adding Reps; “Efficiency” Is Key

GlaxoSmithKline is launching Vesicare and Boniva without increasing the size of its sales force.

Vesicare and Boniva are "two major products requiring very big general sales force support," GSK Pharmaceutical Operations President David Stout said during a first quarter earnings call April 28. However, "we've not added any sales force to do that."

Both launches present specific marketing challenges and opportunities that will need to be addressed by sales reps.

For example, the launch of the once-monthly osteoporosis therapy Boniva (ibandronate) by GSK and Roche will require extra explanation to health care providers on the unique dosing regimen.

GSK and Roche have had ample opportunity to gear up for the Boniva launch; a once-daily form was approved in May 2003, but the launch was postponed until the less frequent dosing regimen cleared FDA (¹ (Also see "Roche/GSK Boniva Launch Plan Includes Reminders For Once-Monthly Dose" - Pink Sheet, 4 Apr, 2005.), p. 4).

The Vesicare (solifenacin) launch also presents challenges for GSK and partner Yamanouchi. The drug enters a crowded incontinence market, with two other recent entries: Indevus/Pliva's Sanctura (trospium) and Novartis' Enablex (darifenacin) (² (Also see "Overactive Bladder Ads Become Frequent; 3 DTC Spots Break In Last 2 Months" - Pink Sheet, 18 Apr, 2005.), p. 10).

Instead of increasing the number of sales reps, GSK plans to support both launches through increased efficiency. "We haven't added anything for the last two years," Stout said. "We're finding more efficient ways to use our sales organization."

CEO J.P. Garnier has expressed concern about the ballooning size of pharmaceutical sales forces, and indicated that GSK would cut the number of its sales reps and reinvest in R&D if Pfizer acted first (³ (Also see "Waiting For Pfizer: GSK Will Cut Sales Force Should Pfizer Act First" - Pink Sheet, 14 Feb, 2005.), p. 17).

Garnier said GSK would "welcome" a decision by Pfizer to reduce the size of its sale team. "If sanity can be restored and the arms race starts to slow down, it will be good for the industry," Garnier said at the time.

GSK appeared to back away from those comments during the April earnings call, with Stout telling investors that the company's decisions on sales force strategy are independent of the decisions of its competitors.

"We have always tried to stay ahead of the marketplace," the exec said. "We don't wait for Pfizer to react. We do what we think is best and will continue to do so."

Garnier reiterated that sentiment, and asserted that GSK's streamlined sales effort is superior to those of its competitors. "We...have a real belief that our sales force can be more efficient than [Pfizer's] with more products at the same time."

Pfizer announced "modest" cuts in sales reps - rather than the wholesale change as had been predicted by one analyst - under a reorganization of its sales team in April (⁴ (Also see "Pfizer Sales Force Stays: Changes Include “Modest” Cuts, No Lay-Offs" - Pink Sheet, 11 Apr, 2005.), p. 9).

"I just want to be clear that Pfizer has not cut their sales force. They have restructured their sales force," Garnier said. "There are still the same number of sales reps calling on physicians."

Like GSK, Bristol-Myers Squibb is choosing to retain its current sales force size despite two pending product launches: muraglitazar for type 2 diabetes and abatacept for rheumatoid arthritis.

The number of sales reps is "basically set as it is now, and as you look at the sales force, we would not anticipate any further changes going forward," Bristol CFO Andrew Bonfield told investors on a first quarter earnings call April 28.

Forest also recently launched two products without additional sales reps, albeit on a much smaller scale: the combination pain therapy Combunox and the alcohol dependence therapy Campral (⁵ (Also see "Forest Launches Combunox And Campral Without Adding Sales Reps" - Pink Sheet, 25 Apr, 2005.), p. 15).

GSK also touted its cost savings skills during the call, and compared its success in that area to that of Pfizer.

Referring to Pfizer's plans to cuts costs by $4 bil. by 2008, Garnier said: "We have saved a lot of money. We just don't do press conferences to talk about it. We saved £4 bil. since the merger."

"You shouldn't only do cost savings when you're in trouble - you should do cost savings all the time," he said. "For us, this is absolutely business as usual."