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Japanese Sales Practices at Pharmaceutical Firms ver.2016

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This report talks about followings.

  1. Summary
  2. Scope Discussed
  3. Medical Representative
  4. Number of MR
  5. Number of MR by Company
  6. Number of MR by Country
  7. Is the number of MR in Japan reasonable?
  8. Why So Many MR in Japan?
  9. Regulations Concerning the Sale of Pharmaceuticals
  10. Financial Contributions to Medical Institutions, Universities, and Physicians
  11. Curbing Extreme Sales Tactics
  12. Theoretical Underpinnings of Business & HR Strategy at Foreign Firms in Japan
  13. Declining MR’s Presence
  14. Future Outlook
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The number of MR in Japan in 2015 was 64,135. At all type of companies; domestic pharmaceutical companies, foreign companies, and Contract Sales Organizations (CSO), the number of MR had been increasing until 2013, but it turned to decrease from 2014. 
Among developed nations, Japan follows the United States in terms of number of MR. However, at the same time, when we look at the number of physicians per number of MR, the United States has approximately thirteen (physicians/MR), while Japan has below five, so we see considerable gap and an outstanding issue in terms of productivity. 
While people see less productivity in sales activities, the number of MR still remain quite large. The unique MR skillset and the Japanese “old” employment system, which emphasized long-term employment, created a situation that renders both internal transfer and dismissal difficult. Also, the pharmaceutical industry has enjoyed considerably high profits, meaning that even bearing these fixed labor costs in mind, there was no sense of urgency to firms’ economic viability.
However, at the same time, the MR climate is steadily changing. The use of contract MR is becoming more widespread. New guidelines are calling for greater transparency. The approach of M3, Inc., and others like it, of providing medical information online is rapidly gaining ground. Amidst this, the true presence of “physical” MR is increasingly being called into question.
In the short term, there are unlikely to be major changes to the current personnel system. In the medium term, as contract MR increase and the Internet is further used for the provision of medical information, there will likely be changes to MR employment and organizational adjustments to follow.
For foreign firms entering in Japanese market, this may be an opportunity to enter a market that offers a great degree of flexibility and provide a new business model. Firms should leverage outsourcing in various fields not only in manufacturing and clinical development, but also in sales and marketing, keeping a slim organization inhouse.
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  • JPRO
    • About US >
      • About Founder
      • Contact Us
  • BD support to public/governmental office
  • What We Do
    • Lean Agent, Local Agency Models
  • オフィス概要
    • 代表プロフィール
  • 事業内容
    • 事例紹介