Thursday, October 12, 2006

NitroMed - BiDil: reps "you're fired"!


Poor NitroMed reps.
The maker of the heart drug approved only for black patients said yesterday it fired its entire 120-member sales force and would replace it with a small team of heart specialists in a move to cut costs and improve marketing.


NitroMed Inc. shares dropped more than 9 percent. Sales of its drug BiDil have been disappointing since it hit the market last year.


"Sales of BiDil have grown steadily, but they are not growing at a rate that supports the present sales structure," NitroMed chairman and chief executive Jerry Karabelas said in a statement.

NitroMed said the "elite" team of cardiovascular specialists would focus on influential physicians, current BiDil users, and medical centers in major cities that treat a large number of blacks with heart disease.

NitroMed estimated the restructuring would save it $30 million annually.

The new sales team is currently being hired, the Lexington-based company said.

The revised strategy aims to attract health plans, key institutions, and regional heart failure specialists who make decisions on therapy and influence a broad base of prescribers, Karabelas said.

Insider's view: are the right people really being fired here?

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