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Health Care Reform May Force U.S. Pharmaceutical Companies to Overhaul Sales Strategies, Says New Report From ZS Associates and eyeforpharma
Date:6/16/2009

-- U.S. Pharma can learn from its counterparts in Europe --

EVANSTON, Ill., June 16 /PRNewswire/ -- While President Obama's push for a larger government role in health care and the prospect of a European-style health care model developing in the United States may worry some pharmaceutical companies, all should share a more immediate concern: the growing influence of payers over physician prescription decisions in the United States.

According to a new report by global management consulting firm ZS Associates and eyeforpharma, a leading provider of pharmaceutical business intelligence, this changing payer landscape will force companies in the United States to change their sales models much like pharmaceutical companies in Europe who must adapt today to serve the needs of the various decision-makers and influencers driving their local health economies. Still, this change won't happen in the U.S. as quickly as in Europe.

"Though U.S. health care has plenty of problems of its own, the lack of central decision-makers, as are common in much of Europe, allows the traditional practice of pharmaceutical representatives calling on physicians to remain effective and largely intact -- for now," said Chris Wright, principal and leader of the pharmaceutical practice at ZS Associates and co-author of the "Drivers of Change to Pharmaceutical Commercial Models" report. "Over the next several years, however, U.S. pharmaceutical companies should trim another 15-20 percent of their sales forces and prepare to do what many in Europe are doing today. They must modify their direct-selling strategies and prepare to sell to an increasingly diverse group of health insurance companies, government payers like Medicare and Medicaid and other opinion leaders who will increasingly influence prescription decisions."

Payer Restrictions in the U.S. versus EU

The fragmented nature
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SOURCE ZS Associates
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