The Wall Street Journal | Ed Silverman
The pharmaceutical industry
has shed thousands of sales representatives over the past decade, but drug
makers continue to invest in hiring and training, albeit at rates that are only
slightly higher than what was seen several years ago. The upshot is that the
demise of these marketing stalwarts may have been exaggerated.
Among U.S. drug makers, the
annual cost per primary care rep ranges from $125,000 to $200,000, although
most companies allocate roughly $160,000, which is up from $150,000 back in
2005. The modest increase reflects less travel, fewer extravagant meetings and
lower costs for laptops and tablets, according to a recent report by Cutting
Edge Information, a market research firm.
The same factors helped temper
cost for reps who call on specialist physicians and hospitals, although the
averages were, not surprisingly, higher than for primary care reps. The average
cost for a specialty rep was $228,000, while the average annual cost for
hospital reps was $243,000, according to the report, which queried 61 drug and
seven device makers late last year.