Will Drug Samples Soon Be a Thing of the Past?

Will Drug Samples Soon Be a Thing of the Past?

We all know that the number of pharmaceutical sales representatives have declined significantly since the high point in 2007 when approximately 105,000 members of this species were alive and well in the U.S.

Sales rep visits that included samples have dropped even faster. According to Cegedim Strategic Data (SD), the number of detailer visits that included samples has decreased 35% from 116 million in 2007 to 76 million in 2011 (see " Spending on Drug Samples Continues to Decline").

There are lots of reasons why sales rep visits that include drug samples is declining. For one thing, many physicians are refusing samples because they think they promote more expensive treatments. However, it's more likely due to cutbacks to the sales force. "If we're seeing a decline in samples at this point, today one of the major drivers is the drop in the overall number of sales calls being delivered," Jerry Maynor, director of marketing and business development for CSD's U.S. division. eSampling, where physicians can order samples without the sales rep, is a very minor activity that does not account for the trend (only 5% of doctors want to receive samples by mail only).

What percent of total details include samples? That gets complicated because numbers are all over the place. In 2008, there were 92.93 million details according to data reported here. But CSD says 106 million details in 2008 included samples. Of course, that's a mathematical impossibility. I will have to track down more compatible numbers.

How much do drug companies spend on samples? That's a number in dispute, depending on how you calculate the value of samples (ie, retail value of samples vs. Average Wholesale Price; see here). By CSD's estimate, in 2007, drugmakers spent nearly $8.4 billion on samples. That figure fell to about $6.3 billion in 2011, the most recent data available.

Pfizer's Sales Reps Have 48 Hours to Out Deliver eSampling Program. #FAIL!

Pfizer's Sales Reps Have 48 Hours to Out Deliver eSampling Program. #FAIL!

Pfizer has become the latest drug company to offer doctors the option of using the Internet to order free samples of its drugs, a trend illustrating the diminished role of sales representatives, whose ranks continue to decrease (see PR Newswire). The service is called SamplesDirect.

The WSJ Blog reports that the fear among Pfizer reps was that online sampling would only further erode their job function. "But Pfizer reached a compromise with its reps: when a physician places an e-order, it’s flagged to his or her sales rep, who has 48 hours to step in and personally take over the order. If the rep doesn’t act, the order is filled electronically."

Suppose you ordered a book from Amazon.com and expected prompt overnight delivery, but your order was placed on "hold" for 48 hours to allow a brick-and-mortar local bookstore to fulfill your order? Is that a model destined for success or the trash bin? I think we all know the answer to that.

Some Pfizer sales reps also seem to understand that they are being "duped" by Pfizer's claims that this will "keep them in the loop." Here's some chatter about this heard on the Cafepharma's Pfizer Company Discussion Board:

"Why spend $300 for a sample drop when FedEx will do it for $20. Forcing reps on physicians to drop sample - the old pharma model continues"

"This is a joke, reps have 48 hrs to deliver the goods ? Why not overnight them for $10 and not pay the rep $400.00 / day income. Gas and insurance in the car etc. Folks this gig has a very very short horizon ahead, think for yourselves."

Other anonymous CafePharma "reps," however, think it is a good idea:

"Reps are right, the sample calls are a huge part of getting in to see the Drs. The other side is, no sample calls, no calls."

"it's much more convincing when you have a rep "close" a doctor and won't take no for answer that you know you're going to have to callback for more freebie samples to subsidize those patients complaining about their doctors bills!"

"This is actually positive for the rep as they will have a reason to see the MD due to their need of samples. It is up to the rep to act with a sense of ugency."

This last post received this rejoiner: "Obviously, the home office is reading and posting on Cafepharma." Maybe, but home office types do not make spelling mistakes!

It will be interesting to know what percent of eSample orders were hand-delivered by Pfizer reps who beat the 48-hour deadline. Pfizer's SamplesDirect service launched in August, so they must have some data. But I don't suppose they'll share it with us.

Whether or not eSampling assuages the fears of current reps, it does not bode well for the sales force in general and for hiring new reps to replace the old. You cannot argue with the business imperative of reducing costs. If "sample calls are a huge part of getting in to see the Drs" and most doctors can get product information from sources other than reps (eg, the Internet), then most docs will only want to see reps who have samples. If they can order those samples online, then there is even less reason to see reps. They'll just wait out the 48 hours and get their samples by UPS while blocking all Pfizer reps from visiting. Pfizer also has an economic incentive to make sure eSamples are delivered without reps -- ie, $20 for eSampling vs. $300 for a rep "sample drop." Plus, doctors are going to be pissed off that the delivery is delayed and that their online orders may actually cause a rep to visit!

The temptation to push that "easy" button BEFORE 48 hours is up is great!