Anonymous
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Anonymous
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I didn't mean to imply that merck would collapse-you are right,tons of cash,on the DOW,to big to fail. I meant the entire marketing program-reps,marketing,sales management. It is failing already, and has been for some time, but now there is no way to hide it. Still too many mouths to feed. Besides with the ever shrinking pipeline why do you need such a huge sales staff? Again, they are only liability. Now it will be about reducing the companies risk. The generic point is a good one but the courts are looking at the "deals" to put off patent expiry now. Any bets on how the courts/gov. will come down on protecting drug patents (mfg. or genrics)? Merck is using it's cash to prop up the stock price (not unlike QE) not keep jobs. The projections for growth targets for '13 will remain the same as '12. A guidence that the analysts were not happy with. No organic growth coupled with no in-organic growth-no acquisitions are planned-the schering buy was way overpriced with mixed results. The lipid franchise has run it's course and there are some questions as to the safety of Januvia, andit's revenues will never replace singulair, maybe not even cozaar. So...merck is at best in a holding pattern, just trying to stop revenue erosion. How to do that if your only goal is to meet last years revenue targets? Gotta cut more staff, especially when they are not needed due to a declining portfolio. Merck seems ripe for a major sales force overhaul-long overdue.
PS- I find it curious that you sign off with "FU merck." Why would you have that reaction to what is a normal business cycle for a company? Ford couldn't continue to make model "T's" forever. Markets change. Companies change. It's the only constant in life. I too am ex-merck,a lay off casualty, but you soon get over it. As a stockholder I have a vested interest in seeing merck continue to pay good dividends and keep being a valued stock. That is now my only interest in merck. as an investment. If they can't provide revenue to demonstrate value to the stock price then they have to look at some other way. Like reducing headcount. Why is that hard to understand?
Not hard to understand and as a retiree, I'm with you. But I can also understand where the FU Merck guys are coming from, too. They probably were at one time loyal Merck employees and now feel shafted by the company management's ineptitude that made things much worse than they needed to be. Nobody with a clue IN field sales wanted to see mass hiring of reps to engage in the share of voice wars and let their management know this repeatedly but were ignored. This led to a toxic environment where many employees felt like the company had declared war upon them with excessive bogus metrics too often accompanied by threatening and bullying managers. So I can appreciate the FU Merck folk, too. Like you said, they created a jenga structure where a lot of asses will fall (including maybe their own) if the sales force is reduced to most efficient and effective levels where realistically they need to be and should be.