Chapter 1 - So You Want A Career in Pharmaceutical Sales Flashcards
Pharmaceuticals are arguably the most socially important healthcare products. True or False?
True.
What have pharmaceuticals been used extensively to promote since the late 20th century?
“Wellness” disease prevention (e.g. vaccines) and as early interventions for people at high risk for certain conditions.
What two things have become more prominent goals for patients, healthcare providers, and the pharmaceutical companies in recent years?
Quality of life and lifestyle enhancement.
Pharmaceutical development is a high-risk undertaking, in which many promising leads prove disappointing. True or False?
True.
Blockbuster level drugs typically produce how much in annual sales?
Over $1 billion.
How much does the global pharmaceutical industry generate in annual revenue and how many people do they employ?
$950 billion and 1.7 million people.
Which three countries produce the largest portion of the world’s pharmaceutical revenue?
The U.S., Western Europe, and Japan.
Which two factors have contributed significantly to recent growth in the pharmaceutical industry?
Population growth and increased life expectancies.
How much longer can a person expect to live today compared to the late 1800s?
Over 30 years longer.
Senior citizens consume ____ _____ times as many medications as people under the age of 65.
over 3
Pharmaceutical companies joining genomic companies to establish genomic research facilities will prove profitable in the near term. True or false?
False.
Pharmacy Benefit Managers (PBMs) act as intermediaries between which two entities?
Pharmaceutical companies and large drug purchasers.
Driving economies of scale, PBMs can sell drugs by mail at lower prices than retail pharmacies. True or false?
True.
The high cost of medicines is the cause of increasing healthcare costs. True or false?
False.
What percentage of the total healthcare costs in the U.S. are related to expenditures for prescription and non-prescription pharmaceuticals?
8%.
Which federal organization regulates the introduction of new drugs and enforces the United States drug laws?
The Food and Drug Administration (FDA).
The FDA approval time is shorter than in past years and the number of approved drugs is rising. The average review time for a new drug is _____ months, down from almost ________ years in 1996.
18 and 3.
Restrictions regarding limitations on Sales Reps concerning “off label” or unapproved uses of their products have been increased. True or false?
False.
What two main categories does the marketing of prescription drugs fall into?
Professional physician promotions and direct-to-consumer (DTC) advertising.
How many geographic regions do most sales organizations divide the country into?
5 to 10.
Each district within region typically includes how many territories?
8-12.
The heart of the pharmaceutical sales team is the Regional Manager (RM). True or false?
False.
Which individual is the main point of contact for the sales representatives?
The District Manager (DM).
Give an example of the regionalization of healthcare delivery systems.
Prescription reimbursement is different in California than it is in Florida.
What is the main role of the National Account Manager (NAM)?
To negotiate product purchasing contracts with major MCOs and giant pharmacy benefit managers (PBMs).
What is the most effective method of grabbing market share?
Comparative selling.
What must a sales rep know to be effective at comparative selling?
Patient demographics of the practice.
Whose job is it to provide valid, proven, R&D based info about the company’s medication?
Pharmaceutical Sales Rep
Whose job is it to provide valid, proven, R&D based info about the company’s medication?
Pharmaceutical Sales Rep
How is the selling process in Pharma sales completely different than other fields?
In many fields, once the sale is closed, the relationship between the Rep and the Client ends. Pharma Reps must initiate, establish and maintain a relationship with a physician, often for many years.
The Pharma Rep will try to sell on every visit. True or False?
True.
Verifying that the physician understands and believes in the scientific rationale for using the medicine is called the _______ in the pharmaceutical selling process.
The “close.”
Pharmaceuticals are arguably the most socially important healthcare products. True or False?
True.
In what ways have pharmaceuticals played a role in every facet of the healthcare system in the 20th century?
(4 ways).
Eradicated diseases, reduced deaths from pandemics, increased life-expectancy, and promote wellness and prevention.
In recent years, what has been the primary goal of patients, healthcare providers and the pharmaceutical industry?
Quality of life/lifestyle enhancement.
Historically, what has been the goal for drug development and usage?
Freedom from pain and debility.
In the United States, who dominates the pharmaceutical industry?
Private, for-profit companies.
The pharmaceutical industry reflects a complex amalgam of _________ and _________.
Science and business.
What is the resulting social contribution from pharmaceutical innovation?
Allows individuals to live longer, healthier lives with fewer restrictions.
What is the common belief about innovation by those working within the pharmaceutical industry?
“Do well by doing good.”
Medicines and vaccines for human and animal use. Products may have a trademark brand name or be generic, and they may be prescription or over-the-counter, are known as what healthcare product?
Pharmaceuticals
Equipment and supplies used in screening, detecting and monitoring disease. Can range from simple home testing kits to sophisticated imaging technologies, are known as what healthcare product?
Diagnostic Equipment
Advanced instrumentation and appliances used for medical therapy, such as joint replacements, implantable defibrillators and pacemakers. Also includes syringes, infusion pumps, metered-dose inhalers, and transdermal patches are known as what healthcare product?
Medical Devices
Commodity, high-volume supplies such as surgical gowns and gloves are known as what healthcare product?
Medical Supplies
Reusable products for health-related use in the home, such as walkers, wheelchairs, oxygen equipment, prosthetics and hospital beds are known as what healthcare product?
Durable Medical Equipment
Name 5 general healthcare settings.
Home-Based Care, Primary Care, Secondary Care, Tertiary Care, End-Stage Care
OBGYN, Family/GP and internists are examples of what healthcare setting?
Primary Care
Patients/consumers and their families/friends are examples of what healthcare setting?
Home-Based Care
Specialists are part of which healthcare setting?
Secondary Care
Hospitals and hospice is part of which healthcare setting?
End-Stage Care
Which countries/regions are pharmaceutical sales the highest?
U.S, Western Europe, Japan
The global pharmaceutical industry represents a market that generates over $_____ billion in annual revenue and employs over ____ million people.
950; 1.7
The U.S. accounts for _____ of the world’s pharmaceutical revenues?
Half
What two factors have significantly contributed to recent growth in the pharmaceutical industry?
Population growth and increased life expectancy
In the U.S., senior citizens consume over ____ times as many medications as people under 65.
3
The number of senior citizens in the U.S. is expected to increase by ____% from 2000 to 2018.
35%
Which industry is considered the newest and most advanced industry in pharmaceuticals?
Biotechnology
What does the Biotechnology industry specialize in?
Gene research, genetically-altered drugs and molecular biology
In 2012, the FDA approved _____ new drugs, the highest number since 1996.
39
Which branch of Managed Care act as intermediaries between pharmaceutical companies and large drug purchasers, allowing them to manage the pharmaceutical benefits of large employers, nursing homes, hospitals, and other clients at a lower cost?
Pharmacy Benefits Manager (PBM)
The large coverage of PBMs enables them what?
Negotiate discounts for large purchasers, which lowers premiums and copays.
PBMs can sell drugs by mail at a lower price than retail pharmacies? True or False.
True.
Expenditures for both prescription and nonprescription pharmaceuticals are estimated to be less than _____% of the total healthcare costs in the U.S.
8%
What organization regulates the introduction of new drugs and enforces the U.S. drug laws?
FDA
What is the average FDA review time for a new drug?
18 months
What are the 2 categories of Pharmaceutical Marketing?
Professional Physician Promotion and Direct-to-Consumer
What are the 4 reasons that Direct-to-Consumer advertising has doubled in growth every year?
- FDA easing regulations on advertising.
- Patients wanting to be more involved in their healthcare plan.
- Public increase in medical literacy.
- Physician’s willingness to grant patient request for a specific drug they see advertised.
How are the pharmaceutical sales territories organized? (Name the 4 branches)
Headquarters, Regions, Districts, Territories
Which role on the Sales Team negotiates product purchasing contracts with major MCOs and giant Pharmacy Benefits Managers (PBMs)?
National Account Managers
List the roles and hierarchy of the Sales Team? (5)
- Territory Reps
- Specialty/Hospital/Niche Reps
- DMs
- RMs
- NAMs
Most companies pay base salaries between $_____,000 and $_____ ,000.
$45,000; $70,000
Many pharmaceutical companies try to make the base salary ____% of compensation, with incentive pay accounting for the balance.
75%
Between 2011 and 2012, the average bonus/commission rose from $____,000 to $____,000 and the average total compensation rose ____%.
$27,000; $29,000; 4%
Using the “comparative selling” technique or the “hard sell on features and then soften the benefits of a drug” technique are use in what type of selling strategy?
Selling for Market Share
Even if a physician already prescribes a product, but you explain how that product can help other types of patients in other therapeutic areas, you are using what selling strategy?
Selling for Volume
Pharmaceutical development is a high-risk undertaking, in which many promising leads prove disappointing. True or False?
True.
Which statement accurately describes the predicted relationship between pharmaceutical companies and genomic research facilities?
a. “genomic research company” is another term for “ethical research company.”
b. Partnerships between pharmaceutical companies and genomic companies will not prove immediately profitable.
c. Pharmaceutical companies have little to no interest in partnerships with genomic research companies.
d. Pharmaceutical companies will be genomic research companies’ biggest competitors in the coming years.
B.
Prescription drug therapy is not cost-effective for insurance companies and healthcare providers. True or False?
False.
Several pharmaceutical companies are joining with genomic companies to establish genomic research facilities in order to use the research data to gain significant advantage. True or False?
True.
The high price of healthcare is explained by the high price of medicines. True or False?
False.
What influences the number of districts in a region?
a. The number of qualified reps to apply to represent that region.
b. The region’s population.
c. Both the district’s population and the number of qualified reps to apply to represent that region.
d. None of these.
B.
What is an example of the regionalization of healthcare delivery systems?
a. California and Florida have different demographics.
b. California and Florida have different drug companies.
c. California and Florida have different DTC advertisements.
d. California and Florida have different prescription reimbursement policies.
D.
The heart of a pharmaceutical sales team is the Regional Manager. True or False?
False.
Most DMs did not start as Representatives. True or False?
False.
How many territories are in a typical district?
8-12
What is the most effective sales method for grabbing market share?
Comparative Selling
In Western Europe, drug utilization is largely government controlled and access to certain drugs may be limited. True or False?
True.
What is meant by the regionalization of the healthcare delivery system?
Healthcare payment systems (policies relating to physician prescribing and prescription reimbursement) are different in the Western states than they are in the Midwest.
Who on the sales team is responsible for understanding the healthcare payment systems and the needs of their area?
Regional Managers
