SOURCE: Cutting Edge Information

December 19, 2007 07:27 ET

Increase in Per-Rep Expenditures Despite Less Mirroring

RESEARCH TRIANGLE PARK, NC--(Marketwire - December 19, 2007) - Even as companies reduce their mirrored sales forces, the growth in per-rep expenditures is far outpacing inflation, according to a study by pharmaceutical business intelligence leader Cutting Edge Information. The report, "Pharmaceutical Sales Management 2008," shows that the trend of increasing costs is seen in both general practice and hospital/specialty reps (

Surveyed companies indicated that they increased their per-rep expenditures by 34% for primary care reps and 12% for specialty and hospital reps since 2005. "Excessive mirroring has resulted in many doctors closing doors to reps and the sales forces are beginning to respond to this pressure in the only way they can -- which is reducing the number of reps calling on each doctor," says David Richardson, a senior analyst at Cutting Edge Information. "Expenses, however, are not following this reduction, as many sales forces are not cutting reps as they reduce mirroring."

Instead, the rep-to-doctor ratio is being decreased, with many companies going as far as a 1-to-1 relationship for all tiers of doctors. Reps are gaining higher levels of access as a result, which is offsetting the calls lost due to reduced mirroring. The stronger bonds between doctors and reps also increase the effectiveness of the calls.

The report, "Pharmaceutical Sales Management 2008," examines pharmaceutical companies' sales investment, structure, strategies, and field tactics. Compiled from interviews and surveys with sales leaders at top-performing pharmaceutical companies, the report allows drug companies to compare and improve their own sales strategies.

Key metrics in the new pharmaceutical sales report include figures for the following areas:

  -- Budgeting and Financial Support
  -- Structure and Headcounts
  -- Product Prioritization, Territory Alignment and Coordination
  -- Sales Operations and Contract Sales
  -- Training and Development
  -- Sales Compensation and Reward Programs
  -- Rep Activities
  -- Segmenting and Targeting
  -- Overcoming Reduced Physician Access
  -- Optimizing Time Earned with Physicians

To download a free, online summary of this report, visit

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