Here's a Profession That I Don't Get, Pharmaceutical Salesperson

I'll admit, I'm in a profession that many think is unnecessary.  I work in the investment management business.  Many, in fact many personal finance bloggers, believe that my profession creates extra expenses and adds no value.  I understand this perspective, and obviously disagree, but that's not the point of this post.  I'm here to pick on others, not myself!

I was in the lobby of my client, who is a doctor, when another suit enters.  He looks at me, knowing that I am not a client, and says, "Oh, hi there.  Who do you represent?"  I can see his briefcase bursting with pharmaceutical samples, and realize that we are there for two completely different reasons.  As we wait for the doctor, we begin to chat.  You know, "how long you been doing this?  How do you like it?"  The usual stuff.

I find out that he was not pre-med in college, but a business major.  I'm not sure why I thought that pharmaceutical salespeople were pre-med types who did not go to med school.  I guess I assumed that some science background would be necessary to be able to competently represent a medical product.

I find out that he worked as an assistant to a financial adviser after college, before entering the field of pharma sales.  I witness his interaction with the doctor's receptionist.  He greets him with familiarity, gives him a few pens and medical tape dispensers.  He says, "I know you like those pens, I got you some extra."  The doctor did not have time to see him, so he leaves.

So, here are a few more things that I found out.  He drives a company car, has an expense report and flexible hours.  I looked up the pay in salary.com, and a Pharmaceutical Sales rep in Los Angeles is expected to make a median of $62,216, while a Senior Pharmaceutical Sales rep in Los Angeles makes a median $74,424.  The pay is good, but not outrageous.

But here's what got me thinking.  Why do Pfizer, Bristol-Meyers or Johnson & Johnson need sales reps for their prescription drugs?  Is it possible that the sales reps, often without a medical background, know more about the drugs than the doctors to whom they are selling?  And how much of my doctor's decision to prescribe one drug over another hinge upon the quality of his local sales reps.

In order to support a sixty to seventy thousand salary along with the expenses associated with the car and expense report, it must cost the pharmaceutical companies close to $200k per rep.  In this day of increasing medical expenses, political debates over rising drug costs, and Medicare cuts, is this a necessary expense?

Shouldn't the medical journals, scientific and academic community and the doctor's own research provide better information for the doctors to determine which drug to prescribe?

Just a thought.  Not that it has anything to do with personal finance.

Comments

[Him]

In my line of work, I see pharma reps all the time.

I'm surprised that the rep you ran into wasn't a big-chested blonde...unless of course your client was a big-chested blonde, so it would make more sense to send in a male. Friends of mine in the pharma industry have told me that it is PREFERRED that the salespeople don't have science degrees. It is easier to have them repeat verbatim all of the scientific gobbledegook without having them actually think if the drug will actually work.

Pharma companies employ sales people to make more money. Doctors don't have the time nor inclination to do their own research. Every FDA approved drug has shown efficacy for its indication - that's why they're on the marked in the first place! I'm pretty sure that many doctors get compensated on way or another if they prescribe a certian company's drugs as well.

In an industry where blockbuster drugs will bring in a few billion dollars of revenue, what's a few million given to a few reps here and there?

[D]

It is my understanding that doctors do make money when they write a prescription for the drug of the month. I think this is terrible. I realize dr.'s need money to help fund their overpriced malpractice insurance, but I think patients needs are neglected when business is done in this manner.

[Medicated Money]

Here’s my $0.02 on being on the other side of the aisle with this topic. It has been shown that most primary-care physician prescribe a total of 12-15 different medications for various problems. Where do they learn these medications? For most, it is during their residency and the medications were the ones used by their attending physicians. Furthermore, it also has been show that for most physicians these drug reps and the ‘perks’ they bring docs i.e. free lunches, pens, trinkets, and other stuff (I have heard or have received money) do not convince a physician to switch from their 'proven medication' to one being ‘sold’ by the drug rep.

For most physicians, they use drug reps for one main reason: free samples. Almost every primary care physician I have ever encountered will only allow drug reps to stop into their clinic if they bring samples. And these samples that are brought to the clinic are for one reason: to benefit the patients. If one could see the amount of free medications physician give patients due to various reasons, one would think it is the local pharmacy!

In my opinion (and I am very one-sided on this issue), I think it is perfectly acceptable for someone to accept a lunch or dinner in exchange for 20-30 minutes of one’s time. I think it is a great servie that the supplies received by the physician then be dispense free to the clinic’s patients, especially those that may not be able to afford these medications.

What does the drug company gain from giving away their product? They are betting that through that sample, a patient has a positive result, and is treated with the medication. They then bank on the physician seeing these results, and begins prescribing that medication for similar patients which in turn will increase the sale of an effective medication for a drug company.

[lamoneyguy]

Thanks for the comments.

Him, I have heard that stereotype about pharma reps. Sadly, not true in this case.

D, I hope that's not true. It's bad enough for financial advisers to get paid more for recommending certain mutual funds or annuities, but doctors? That's scary.

MM, thanks for the perspective. I'll admit, I do recall instances of receiving handfuls of samples from my doctor. It saved me some money by not having to refill quite so soon. So, pharma reps are like REALLY overpaid versions of the girl who stands outside the Chick-fil-a with a tray of chicken nugget samples?

[Medicated Money]

"So, pharma reps are like REALLY overpaid versions of the girl who stands outside the Chick-fil-a with a tray of chicken nugget samples?"

LOL...let the record show that you said this comment and not myself, but I guess you are correct! Do you think the Chick-fil-a girl gets an expense account, or is the main perk the free nuggets? If it is the latter, I hope honey mustard is included!

[Hazzard]

I remember one day that I was sitting in my doctors office reading a magazine while I waited to see the doctor. A pharma rep walked in and did her smoozing of the receptionist with free trinkets and "the favorite candy" etc. I remember being struck with a thought that has come back to me many times since. Most of these folks are drug pushers, but they can't be arrested because they are legal drug pushers. No wonder so many people have been trying to get marijuana FDA approved..... :)

Don't get me wrong. I'm not saying they are evil or anything. I have a couple cousins that do this for a living. I just found it odd to think that both these people and street dealers are both simply pushing substances that all go in to our bodies to yield some sort of a reaction. One is against the law, and the other isn't.

[lamoneyguy]

Ha, legal drug dealers! Well, I wonder which characterization they would prefer, glorified Chick-Fil-A samples kid, or legal drug dealer?

[anonymous]

The big pharma companies spend more on marketing then on drug development.

About 1/3rd of the cost of a drug is R&D, 1/3rd is marketing and 1/3rd production and distribution.

It's why when a generic comes on the price collapses.

[matt]

If you're a stockbroker, I'm sure you accept free lunchs every day from a mutual fund wholesaler. it would be impossible to keep up on all of the mutual funds. The presentations are invaluable and lead to better recommendations for your clients. Same thing with a pharma rep...

[JB]

I love how people who have no idea or concept of something think they have the right to sit on the sideline and commentate.
How hard must it be to remember every single drug on the market, both new and old and find out about old drugs with new drug indications?
Even if it is a quick visit from a rep who reminds a Dr about a product that may fit an individual patient better than the drug they are currently on, and in turn gives a single patient a better quality of life, isn’t it all worthwhile?
I think you will find the majority of reps are very ethical and don’t see their job as a ‘sales’ job, but more of an educator role instead.
We are all heavily trained and know the history of the disease state as well as what our products are used for.
Things have changed for the better in this industry over the past years and you can’t ‘buy’ a Dr to prescribe a specific product.
So you may say it is an unnecessary job, but I got into it for the right reasons and if you could help a Dr give even one of his patients a better quality of life, would you do it?