Vacancysoft/Clinical Professionals Pharmaceuticals Report

COMMERCIAL ROLES IN PHARMACEUTICALS

NOVEMBER 2016

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.

We are delighted to be partnering with Vacancysoft to provide insight on recruitment activity in the Pharmaceuticals sector.

For this report we have been analysing activity for commercial roles over the last two years, identifying key trends we are witnessing.

I hope you find it interesting and should you like to know more about current market activity please do contact me on yvette.cleland@clinicalprofessionals.eu

Yvette ClelandCEOClinical Professionals

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 salarysurvey@clinicalprofessionals.co.uk

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