Pharmaceutical industry work force to be supplemented by Contract Sales Organizations

Contract Sales Organization contracts were first established in Western Europe in the 1990s. According to Expand Health, some 80 such contracts were signed in with 1,000 sales representatives.

COS contracts allow pharmaceutical companies to transform fixed costs, such as investments in company cars, laptops and phones, into variable costs, reducing costs, raising sales, and permitting rapid access to the market.

Pfizer, Astra Zeneca, Novartis and Sintofarm are some of the companies that have already signed COS contracts.  Mihai Ciobanu, OTC Manager for Johnson&Johnson Romania, said that his company managed spectacular growth using such contracts, as pharmaceutical companies are presently facing major challenges in terms of recruitment.

One advantage is that the sales team can later be internalized with the partner company.