Useful Advices - Business

One of the most asked questions I get is how many sales people does it take to get the reven

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ue numbers needed. Personally, I believe in large sales forces because in highly competitive

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

situations the largest army wins. That doesn't mean, however, that you can go out and hire

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

00 sales people if all you can possibly sell this year is a million dollars if everything go

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

s right. So how do you decide how large a staff you need?

The first thing to do is to dete

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

mine how much revenue you want. I say want because your present staff is getting you what y

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

u have and will be only able to grow so much. But if you want to double or triple your sale

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

you will have to increase the number of people selling. It's just a fact of life. So let's

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

say you are billing $2.5 million and want that to grow to $4 million. Your typical sales co

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

pensation is 10% commission so your potential commission pool will be $400,000. Next determ

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ne what the average sales person in your business should make. One rule of thumb I've used

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

or new sellers is compensation for a 2 year professional just starting out. Let's say $55,0

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

0 per year. Well dividing your commission pool ($400,000) by your compensation target ($55,

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

00) would tell you that you need 7 sellers on staff to get to $4 million. What's that you s

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

y? You only have 4 sellers and they are making a little more than $55,000? That's right an

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

that's why you are doing $2.5 million. And you will do $2.5 million give or take a few hun

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

red thousand until you hire those extra 3 salespeople.

Of course, the numbers given here ar

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

for example only and may differ in your situation. We can calculate the number of sellers

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

n almost every business, however, so call me if you want to discuss your particulars.

Now h

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

w much do you want to sell? We can calculate that too but I'll save that for another column

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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