THE FUTURE: "Non-personal Promotion", the end of the Pharma Rep

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The latest cutbacks mean the group will shed around a tenth of its workforce, or 5,050 jobs, by 2016 as sales shrink due to patent expiries on several top-selling medicines.

Pascal Soriot said he had no quick fix for the company and ruled out the idea of diversifying away from prescription drugs, as several rivals have done.
 
















Concurrent with its growth initiatives, AstraZenneca is further restructuring that will lead to a global headcount reduction of 2300. This efforts are combined with two previously announced restructuring efforts: a headcount reduction of 1600 related to the proposed R&D footprint changes announced on Mar. 18, 2013, and the balance of the Phase 3 restructuring program announced in February 2012, which amounts to 1150 roles. The total combined Phase 4 program entails an estimated global headcount reduction of about 5050 over the 2013-2016 period. The combined program of changes is estimated to incur $2.3 billion in one-time restructuring charges, of which $1.7 billion are expected to be cash costs. Benefits of approximately $800 million per annum are expected by 2016.
 




When he was recruited, AstraZeneca was struggling, having seen off his predecessor David Brennan in the Shareholder Spring.

As ulcer treatment Nexium and anti-psychotic drug Seroquel face cheap competition, the firm was intent on shovelling cash out to shareholders and cutting costs rather than discovering the next blockbuster.

Soriot focused on restocking the half-empty drugs cabinet, with acquisitions of respiratory and cardiovascular medicines, as well as buying Bristol-Myers Squibb out of a diabetes alliance. As part of its defence, AstraZeneca issued a bullish 10-year plan that targets revenues in excess of $45 billion (£26.8 billion) by 2023, a big jump from the $26 billion it turned over last year.

However, Soriot has not been immune to axe-wielding the axe, announcing plans to cut 5000 jobs. And some pipeline treatments have disappointed, such as an arthritis drug abandoned last year because of side-effects.
 




Anonymous said:
Concurrent with its growth initiatives, AstraZenneca is further restructuring that will lead to a global headcount reduction of 2300. This efforts are combined with two previously announced restructuring efforts: a headcount reduction of 1600 related to the proposed R&D footprint changes announced on Mar. 18, 2013, and the balance of the Phase 3 restructuring program announced in February 2012, which amounts to 1150 roles. The total combined Phase 4 program entails an estimated global headcount reduction of about 5050 over the 2013-2016 period. The combined program of changes is estimated to incur $2.3 billion in one-time restructuring charges, of which $1.7 billion are expected to be cash costs. Benefits of approximately $800 million per annum are expected by 2016.
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link? couldn't find it.
 












http://www.wsj.com/articles/astrazeneca-deals-up-a-tricky-2015-heard-on-the-street-1423155319

Astra’s appeal is its pipeline of immuno-oncology drugs, which underpins the company’s longer-term growth potential. But this year, investors will be hostage to Astra’s success in striking partnerships on drugs. That could make for a bumpy ride.

Pipeline data do promise excitement this year, notably around combinations of immuno-oncology drugs, but those won’t contribute much financially near-term. Blood thinner Brilinta could get a sales boost from data showing longer-term usage helps prevent heart problems, but only once regulators weigh in. Meanwhile, Astra expects to face generic competition imminently to acid reflux pill Nexium, which accounts for about 14% of sales.

Revenue will fall this year, although just how quickly Nexium sales evaporate is hard to predict. Even so, Astra reckons it can eke out slight growth in earnings per share. Doing so will require Astra to slam the brakes on spending: research and development and sales and administrative costs jumped in the fourth quarter, contributing to a sharp drop in earnings per share. Marketing spending for new products could fall; job losses look likely.
 




Anonymous said:
http://www.wsj.com/articles/astrazeneca-deals-up-a-tricky-2015-heard-on-the-street-1423155319

Astra’s appeal is its pipeline of immuno-oncology drugs, which underpins the company’s longer-term growth potential. But this year, investors will be hostage to Astra’s success in striking partnerships on drugs. That could make for a bumpy ride.

Pipeline data do promise excitement this year, notably around combinations of immuno-oncology drugs, but those won’t contribute much financially near-term. Blood thinner Brilinta could get a sales boost from data showing longer-term usage helps prevent heart problems, but only once regulators weigh in. Meanwhile, Astra expects to face generic competition imminently to acid reflux pill Nexium, which accounts for about 14% of sales.

Revenue will fall this year, although just how quickly Nexium sales evaporate is hard to predict. Even so, Astra reckons it can eke out slight growth in earnings per share. Doing so will require Astra to slam the brakes on spending: research and development and sales and administrative costs jumped in the fourth quarter, contributing to a sharp drop in earnings per share. Marketing spending for new products could fall; job losses look likely.
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The last sentence is total BS! Jobs will INCREASE at AZ! Falling profits mean only one thing, and that is more, and more reps! The further profits fall at AZ, the safer we are. Working here is sorta like Alice falling down the rabbit hole! Nothing makes any sense!
 




Anonymous said:
With 51% of doctor offices NOW CLOSED TO REPS, NPP is the future of pharma sales! Let's hope Ole' Frenchie doesn't read this! They quote a former AZ diabetes exec in the article too!

http://www.mmm-online.com/nothing-impersonal/article/394344/
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I don't have to read the rebuttals to know that you got flamed for posting this. Most of my colleagues are Tuesday to Thursday, 10-4 sample dropping caterers, and have been doing so for the past 8 years that we've been trained to "stay on message", and to improve "reach and frequency".

Hospitals and payers will face new pressure from Obamacare in the next 2 years, and that pressure will trickle down to pharma, ESPECIALLY those of us with branded drugs in a crowded market (hullo, SGLT-2's and GLP-1's!). Based on what I'm hearing and reading, there will be one or two big winners in crowded classes, and 4 or 5 losers.

If you don't have enough socked away for 10-12 months of job-search (AFTER the severance runs out), please start today. If you've got 15-20 years on tenure, CSO's pay around 75 grand.
My former competitors and friends from Merck and Sanofi and Pfizer that have CSO jobs suck it up….but are beaten men and women. No one else is looking for people that had 3-4 pod-mates calling on the same customers.
 




MOST CSO's do not pay anything near 75K, most do not have benefits, most have a signature or call quota.

Best advice - look to get into the tech industry, that's where jobs, healthy salaries and careers are these days.
 




AstraZeneca*(AZN*-*Analyst Report) received disappointing news when the U.S. District Court for the District of New Jersey said that the patent (Patent No. 7,524,834) protecting Pulmicort Respules in the U.S. is invalid. The drug is approved for the treatment of asthma.
 




February 16, 2015

Posted by*Derek

According to Fierce Pharma, AstraZeneca is having trouble unloading its anti-infectives division. Part of the problem seems to be that they're trying to spin out the whole package at once:

The pharma giant also specifically sought out venture groups that had been investing in anti-infectives in an effort to find a buyer for the Waltham, MA-based group. "The assets had little (if any) differentiation and were late to the market and the economics didn't make sense," the executive added.

Another player in the field says he took an early look at AstraZeneca's proposition. "The challenge was that they wanted to spin out the whole pipeline plus a 20-person team," he said. "The pipeline had a couple of interesting assets but they wanted to get paid for the uninteresting assets as well."

The article says that people believe that AZ is getting close to making some sort of decision, since the whole process has been going on for longer than they wanted. I wonder how many of that 20-person team still remains?
 




Anonymous said:
The last sentence is total BS! Jobs will INCREASE at AZ! Falling profits mean only one thing, and that is more, and more reps! The further profits fall at AZ, the safer we are. Working here is sorta like Alice falling down the rabbit hole! Nothing makes any sense!
Click to expand...

Agence France-Presse*February 5, 2015 5:45amAstraZeneca says annual profits halve on restructuring

ENLARGE

(GlobalPost/GlobalPost)

British pharmaceuticals group AstraZeneca said Thursday that 2014 net profits more than halved on the back of a vast restructuring charge, and forecast sliding sales this year.

Profits after taxation slumped to $1.235 billion last year, compared with $2.571 billion in 2013, AstraZeneca announced in a results statement.

The performance was rocked by a huge $1.558-billion restructuring charge, including a $391-million hit in the fourth quarter.

AstraZeneca successfully fought off a $117-billion takeover bid from US giant Pfizer last year, amid worries over British jobs and research capability.

Turning to the outlook, AstraZeneca forecast Thursday that sales revenue was expected to fall by a mid single-digit percentage in 2015.

Earnings per share (EPS) -- a key measure of company performance -- was forecast to increase by a low single-digit percentage.

"2014 was a remarkable year for AstraZeneca," said Chief Executive Pascal Soriot.

"We achieved a record six product approvals as we accelerated our pipeline across all main therapy areas."

In early 2013, AstraZeneca announced it would seek to axe around 5,050 jobs over 2013-2016 in a radical restructuring.

The group increased the job losses one year later to 5,600 positions.

"The company is making good progress in implementing the fourth phase of restructuring announced in the first quarter of 2013 and the expansion of this programme announced in the first half of 2014," it said Thursday.

Separately on Thursday, AstraZeneca announced a deal with US drugmaker Actavis to buy the rights to its respiratory business in the United States and Canada for an initial $600 million, plus royalties dependent on revenues.
 




Anonymous said:
With 51% of doctor offices NOW CLOSED TO REPS, NPP is the future of pharma sales! Let's hope Ole' Frenchie doesn't read this! They quote a former AZ diabetes exec in the article too!

http://www.mmm-online.com/nothing-impersonal/article/394344/
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Funny!!! Good luck with that. If you think pharma companies are that stupid to dole out all the money they pay their reps and not see a ROI, you're crazy!!! Even in the most difficult to access territories, reps find a advocate to help deliver their messages. Docs write what they know and what's easy. If there wasn't a rep calling on them or their staff, 80% would still be writing what they used in med school. How successful do you think a new drug launch would be if you did non personal promotion? Look at farxiga, it's a me to drug that really has very little advantages over its competitor. However, I heard it's around a 40% share nationally. If this drug launched with non personal promotion, it wouldn't have five percent-even with your free card. Who's going to explain that to offices on what the differences are between the cards--SIRI??
 




Anonymous said:
how about 'detailing' the doc and their staff about an easy to use website where with just a click they can order samples, apply for free pt. assistance programs, have full product info, calendar of CE / conferences, watch a video presentation of a professional rep (or just an attractive actor portraying a rep)giving a sharp concise detail,, chat feature...or even schedule a lunch for the office so they can see a real live rep??
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Wow!!! That sounds amazing. I can only imagine how excited my offices would be to have that. They would totally take advantage of this and spend time on the computer because my product is special. Are you f'ing serious????? First, half the docs are computer illiterate. Second, no office or doctor is going to spend time on the computer trying to learn the hundreds of different products that they have the ability to use. Personally, I hope you're right and one of our competitors decides to do this. People buy from people and this adage hasn't changed in a hundred years. Get a clue!
 




Here's a possible scenario. You launch drug A with a small CSO sales force targeting key MD's only for 6 months. The reps explain the drug, and the promotional program. You have a strong DTC campaign. You have a $0 copay card. Like Farxiga, you cut deals with the insurance companies, the Feds, and state Medicaid programs. You load them up with samples during the 6 month launch period. Sales take off. Then you DC the sales team, and maintain and increase all possible routes of NPP. Docs can get a limited # of 30 day vouchers, and samples via the internet, etc.

Docs are now used to the idea of no reps based marketing after a certain point. The company saves a fortune of personal promotion.
 




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