Novo Nordisk`s expansion of its U.S. sales force drew mixed responses from analysts, with some seeing it as a bold move that will help it stay even with competitors while others said the company should diversify into other areas.
Novo Nordisk said Thursday that, in the first half of 2007, it will increase its diabetes sales force in the United States, from approximately 1,200 representatives to 1,900. The company said the move is intended to strengthen its position in the U.S. insulin field, which it currently leads with more than 40 percent of the market.
'I think it is positive,' Carnegie analyst Poul la Cour told United Press International.
On the surface, the move would appear to contrast with Pfizer`s announcement that it was cutting 20 percent of its U.S. sales force, but Novo Nordisk is facing a different set of issues.
'It`s two different situations in that Pfizer has problems with current products going off patent and not enough pipeline to replace that,' la Cour said.
Novo Nordisk, on the other hand, has been experiencing an acceleration in growth in the United States over the past several months.
'If they can sustain that growth in the U.S., hiring additional reps obviously makes sense,' la Cour said.
Additional reps would also help them be prepared for the anticipated launch of Liraglutide in 2009, he said. Liraglutide, a GLP-1 analogue for type 2 diabetes, is currently in a phase 3 trial.
Novo Nordisk said the expanded sales force will be used to increase its contact with primary care physicians and endocrinologists in support of their entire portfolio of insulin analogues. This includes Levemir, a long-acting insulin, NovoLog Mix 70/30, a premixed formulation of rapid-acting and intermediate-acting insulin, and NovoLog, a rapid-acting insulin.
'We are very pleased to announce the significant field force expansion in the US market which will support our complete portfolio of insulin analogues as well as our leading insulin injection device, FlexPen,' said Martin Soetes, Novo`s president.
'The expansion will prepare our organization for future launches of additional innovative diabetes products that we currently have in clinical development,' Soetes added.
La Cour said the increased sales force is also a defensive move to help Novo Nordisk compete with Merck`s Januvia, Pfizer`s Exubera and Novartis` Galvus
No comments:
Post a Comment