vacancysoft/clinical professionals pharmaceuticals report · with global health care spending...
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Vacancysoft/Clinical Professionals Pharmaceuticals Report
COMMERCIAL ROLES IN PHARMACEUTICALS
NOVEMBER 2016
I hope you find it interesting and should you like to know more about current market activity please do contact me on [email protected]
Yvette ClelandCEOClinical Professionals
Overview Page 03
UK focus Page 04
Germanic breakdown Page 05
Analysis by company Page 06
About Clinical Professionals Page 07
About Vacancysoft Page 08
Contents
About Vacancysoft Data
Every day Vacancysoft monitors careers centres on thousands of company websites and gathers links where there is change. These links are then classified automatically, and in the case of relevant content, by Vacancysoft staff. The vacancies are found in the course of normal operations. We eliminate duplicates in the vacancies and process them according to our proprietary rules.
To create this report, Vacancysoft analysed vacancies recorded since January 2015. Our data for this analysis spanned the Life Sciences sectors both in the UK and across Continental Europe.
Overview
With global health care spending forecast to increase by an average of 4.3% between 2015-2020, factors driving health care demand remain on the rise. Biologics continue to gain market share in the industry as new drugs emerge (e.g. For cancer and Hepatitis C) where businesses that own patents have the opportunity to profit maximise. Meanwhile the advent of the patent cliff means demand for generic drugs continues to increase where Pharmaceuticals businesses are placing increased emphasis ion brand.
As a result the volume of commercial vacancies has risen significantly year on year, with the monthly average up 31% across Europe overall.
Meanwhile large pharmaceuticals companies increasingly are investing into smaller boutiques developing experimental drugs as a way of outsourcing their R&D, where these investments reduce the requirement to hire people within these departments in the same way. Equally what the pharmaceuticals companies do invest into are their sales and distribution channels, so when they do acquire a drug they can monetise it quickly.
As a result given as well that 2015 was a record year for acquisitions in the industry, the growth in vacancies for sales and marketing has outpaced all other functions. This has resulted in commercial roles now accounting for over 20% of the professional vacancies in pharmaceuticals companies.
When analysing within Europe where the vacancies are forming, the UK dominates, accounting for 22.7% which is significantly more than any other country. The second largest country for hiring in 2016 so far has been Germany, with 16.4%, whilst Russia and France are third and fourth.
Commercial Vacancies in Europe,2015-16
Commercial Vacancies in Europe by Country % Breakdown
Vaca
ncy
volu
me
% o
f tot
al p
rofe
ssio
nal v
acan
cies
that
are
com
mer
cial
MARK % TOTSALES
UK
Germany
Russia
France
Switzerland
Spain
Poland
Netherlands
Italy
Belgium
22.66%
16.44%
10.66%
10.08%
7.08%
5.15%
4.12%
2.82%
2.62%
2.51%
2015 2016
OCT
JAN
FEB
APR
JUN
JUL
SEP
JUN
JUL
SEP
OCT
DEC
JAN
FEB
APR
5%
10%
15%
20%
25%
700
800
900
1000
200
100
300
400
500
600
MAR
MAY
AUG
MAY
AUG
NO
V
MAR
03
UK focus
Within the UK, year on year activity is up by 29% which is broadly in line with activity across Europe. Whilst activity has dipped slightly in the last few months, vacancy volumes remain higher than a year ago. Insofar that the proportion of roles that are sales has been consistently around 60% of all commercial vacancies, it is unclear if this ratio will continue. Indeed there were increasing numbers of marketing vacancies in 2016 with October having the second highest volumes since January 2015.
Analysed by region, the South East dominates accounting for 40% of all commercial vacancies in the UK. Meanwhile the East of England has overtaken London as the second largest geographical area, with 19.8% of the commercial vacancies, compared to 18.7%. Overall the three regions dominate, accounting for nearly 80% of all the commercial vacancies in the UK, which is a significant increase year on year, up from 75% in 2015.
Analysing public sector demand, NHS budgets are under pressure where there remain questions on how experimental drugs will be funded. For example the new CDF system has just taken effect, where the estimate from the ABPI is that “two thirds of existing CDF medicines are likely to be no longer available to NHS patients by the end of the year.” Simultaenously new legislation is being introduced (Health Service Medical Supplies Bill) that will mandate prices on generics for pharmaceuticals companies. Such changes would reduce the profitability of the public sector for pharmaceuticals companies, which potentially could mean lesser commercial focus being given to this area.
Vaca
ncy
volu
me
160
140
120
100
80
60
40
20
Commercial Vacancies in the UK,2015-16
Commercial Vacancies by Region
Vaca
ncy
volu
me
MARK ALLSALES
2015 2016
OCT
JAN
FEB
APR
JUN
JUL
SEP
JUN
JUL
SEP
OCT
DEC
JAN
FEB
APR
MAR
MAY
AUG
MAY
AUG
NO
V
MAR
50
100
150
200
250
774
15
04
Germanic breakdown
Overall the Germanic market combining Germany, Switzerland and Austria, is the largest in Europe for commercial vacancies. With year on year growth of 18% activity this is lower than the continental average though.
In the same way as in the UK, the German government has been putting in place measures (e.g. AMNOG) to reduce the cost of drugs for the public sector, where as a result consumers need to pick up the cost of patented drugs, something that proven highly unpopular. Such policies are forecast to slow down growth in the sector, with 2015-20 projected rates of 1.7%. The Swiss pharmaceuticals market in contrast has been growing significantly faster, with annualised growth of 5%.
In Germany there is a greater proportion of sales vacancies, whilst in Switzerland the opposite is true. Indeed there were only 26% more marketing vacancies in Germany, whilst there were five times more sales vacancies than in Switzerland.
The major change to occur this year is that the proportion of commercial vacancies within Germany has shifted to being more weighted to sales as opposed to marketing. In 2015, 29% of the commercial roles across the region had been for Marketers in Germany, in 2016 this had fallen to 24%. Inversely sales roles in Germancy increased from 35% of commercial roles in the region to 40%.
The Austrian market has shrunk relative to Germany and Switzerland year on year, accounting for 6.3% of the commercial vacancies in the region in 2016 so far, compared to 7.5% last year.
Germanic Sales & Marketing Vacancy Volume2015-16
0
100
200
300
400
500
600
700
800
900
1000
Austria Germany Switzerland
Vaca
ncie
s per
12
Mon
ths
Marketer / PR Sales
Germanic Sales & Marketing Vacancy Volume, 2015-16, BREAKDOWN BY COUNTRY
Vaca
ncy
volu
me
MARK ALLSALES
2015 2016
OCT
JAN
FEB
APR
JUN
JUL
SEP
JUN
JUL
SEP
OCT
DEC
JAN
FEB
APR
MAR
MAY
AUG
MAY
AUG
NO
V
MAR
Vaca
ncy
volu
me
50
100
150
200
250
300
50
100
150
200
250
300
05
Analysis by company
When analysed by company, Johnson & Johnson had the most active hiring this year for commercial roles, with 12% of all marketing and 14% of all sales vacancies being there. Indeed J&J raised its 2016 sales and earnings forecasts due to the success of their prescription drugs business and expect sales to grow at a faster rate than the sector overall, according to Chief Executive Alex Gorsky.
Novartis was the second largest in turns of volume of commercial vacancies and accounted for 8% of all marketing and 11% of all sales roles, where volumes increased 64% year on year. In a sign that the two swiss giants have different priorities, monthly vacancy volumes at Roche have declined year on year, down 6.6%.
Of the top ten, Quintiles is the only CRO with no real change year on year. Will the merger with IMS Health result in a reduction in combined headcount next year?
Amgen are the fastest growing for commercial vacancies, with an increase year on year of over 200%. Could this be linked to new products being launched currently? As part of their strategic repivot “Trajectoire 2018” Pierre Fabre also had record hiring for commercial people.
Finally it is worth noting that sales vacancies are much more concentrated in the top ten, whereby 60% of the vacancies are from this constituent list, compared to marketing, where it is closer to 50%, meaning that for smaller pharmaceuticals businesses brand building is arguably more important than sales distribution networks.
Vacancies by Company HeadcountEUROPE, TRAILING 24 MONTHS
Marketing/Sales Vacancies by Company
Company Marketer / PR Grand Total % changeSales
J & J
Novartis
Abbott Laboratories
Roche
Merck and Co
Quintiles
GSK
Pfizer
Pierre Fabre
Amgen Inc
377
255
70
238
261
41
147
122
44
40
782
609
477
208
352
256
141
110
150
150
1159
864
547
446
342
297
288
232
194
190
55.50%
64.50%
19.60%
-6.60%
22.50%
1.70%
22%
-5.60%
179%
203%
J & J
Merck and Co
Novartis
Roche
GSK
Pfizer
Abbott Laboratories
Pierre Fabre
Quintiles
Amgen
Other
14.38%
6.47%
11.19%
3.82%
2.59%
2.02%
8.77%
2.76%
4.71%
2.76%
41.60%
12.24%
8.47%
8.28%
7.73%
4.77%
3.96%
2.27%
1.43%
1.33%
1.30%
48.32%
MARKETING
MARKETING
SALES
SALES
06
Clinical ProfessionalsClinical Professionals is Europe’s leading life science staffing business offering outsourced solutions via Functional Service Provision (FSP) and traditional, high quality staffing solutions. Detailed market research carried out in early 2013 found that 95% of hiring managers rate Clinical Professionals as consistently superior in quality, speed of response, staff retention and communication. In addition to this, nine out of ten customers rate the company as their most trusted partner. Clinical Professionals have developed a highly comprehensive understanding of a broad range of specialist functional disciplines within the pharmaceutical industry. Our knowledge-base has its foundations in an unrivalled blend of industry experience combined with a commitment to investing in training and development. We have specialist teams dedicated to recruiting within the various pharmaceutical sectors for permanent, contract, interim, FSP and freelance vacancies. Clinical Professionals offer a variety of services for both candidates and clients, including our CP FSP model, offering clients the opportunity to outsource the recruitment of a whole team whilst retaining control of the monitoring function in-house.
What we do:Our Service Capabilities across all European Countries include:• Contingency permanent recruitment• Contract recruitment – freelance and PAYE via Clinical Professionals/Only Medics• Search and selection permanent recruitment• Specialist ‘project-based’ interims via Clinical Professionals/Only Medics• FSP outsourced teams across Europe
Clinical Professionals has launched their 2016 European Salary Survey to determine the salary and benefits for each sector of the UK Life Science industry.The Survey will analyse salary and benefits for each sector of the European Life Science industry, and follows on from the success of our previous pharmaceutical salary surveys.
Contact us for more information on [email protected]
EU OfficeGround Floor,
11-12 Bouverie Street,London, EC4Y 8DP
t | +44 (0)207 822 1710
UK Office33 Blagrave Street,Reading, Berkshire,
RG1 1PWt | +44 (0)118 959 4990
07About Clinical Professionals
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08About Vacancysoft