Sepracor Marketing Efficiency Tanks

August 13, 2008

If you’ve been following my pharma news feed over at BNET, you will have seen this story about Sepracor’s not-very-successful cost-cutting drive.

The bottom line: The company laid off 300 sales reps and still somehow managed to decrease revenues, increase expenses, and lower the efficiency of its reps. The company claimed to investors that the opposite was the case.

I know what you’re all asking: Isn’t there a cute powerpoint chart with pink and blue lines that depicts this disaster?

Yes there is. See below. (And if you’re late to this series, start here and click your way backward.)

Advertisements

One Response to “Sepracor Marketing Efficiency Tanks”

  1. Scott Says:

    My guess is that the company was looking to cut fat, and marketing is usually an easy target (as it is often the easiest to cut department in most drug companies), but had they done a closer analysis of their expenses, they might have found other areas which have lower efficiency ratios. One area which is often bloated but seem as vital is R&D. OK, no argument there. But are they looking at the senior executives? I would guess not, but the Board (assuming they aren’t puppets for executive management) probably should be!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: