Pfizer cuts could trigger same in other drug leaders

NEW YORK (AP) — Pfizer Inc.’s decision to cut 20 percent, or 2,200 jobs, from its U.S. sales force may trigger other companies to slash their own ranks of representatives, ending an expensive and not especially efficient arms race, analysts said.

On Tuesday, Pfizer said it would cut the jobs as part of a cost-cutting program to transform the company into a more nimble organization as it struggles with sluggish sales.

Analysts applauded the move, which they speculated could save Pfizer between $400 million and $500 million annually. But beyond the benefits for Pfizer, analysts hoped other companies would consider paring back their own expensive sales forces as some of them face patent expirations and lackluster pipelines.

In recent years, drug companies have added sales staff but analysts have questioned whether having hordes of representatives repeatedly visiting doctors was economical because patients’ health plans play a crucial role in what drugs are prescribed. Patients will often ask a doctor to prescribe a treatment on their health plans’ preferred drug list because the copayment is lower.

Pfizer’s marketing prowess is renowned in the industry and analysts said its competitors were reluctant to cut their own sales staffs when they had to contend with the might of the world’s largest drug company. Now that may change.

Pfizer has lost patents on numerous drugs recently, including blockbuster antidepressant Zoloft. Other drugs, like blood pressure medicine Norvasc, are slated for generic competition in 2007.

Pfizer said its sales force cuts won’t effect its ability to market its major products including cholesterol-lowering drug Lipitor as well as new drugs such as cancer treatment Sutent.