Pfizer Japan Announces Early Retirement Plan for Medical Representatives

According to Japanese media reports, Pfizer Japan has begun implementing an early retirement program, having already released relevant policies and opened applications for early retirement.

The specific policy is as follows: the recruitment targets pharmaceutical sales representatives aged 50 and above, with approximately 200 participants to be recruited. The deadline is November 30.

For employees who retire early, an additional retirement subsidy will be provided on top of the standard pension to help them cope with this career transition.

Prohibition on Joining Competitor Companies After Retirement

Although early retirement allows for additional retirement benefits, there is an exception: if a representative who takes early retirement belongs to the oncology department or other rare disease drug departments, and joins a competitor company designated by the employer within three years after leaving, they will be required to return the retirement subsidy.

Pfizer has identified several competitor companies, including Merck & Co., which is renowned for launching the immune checkpoint inhibitor Keytruda in Japan.

In the 2018 in-depth reform of Japan’s drug pricing system, requirements for added value, such as new drug development, were tightened. Starting in 2019, annual revisions to drug prices were implemented. Since 2017, Pfizer has adopted strategies to naturally reduce its workforce, including reducing new hires and not replacing departing employees. However, the speed of market environment changes and the severity of the situation have far exceeded expectations. Therefore, it is deemed necessary to recruit voluntary early retirees to implement cost structure reforms.

Currently, Pfizer Japan is led by President Akihisa Harada, with nearly 5,000 employees, and achieved sales of ¥453.6 billion in 2018.

Pfizer maintained a sales force of more than 2,000 medical representatives in Japan for many years, consistently ranking first among pharmaceutical companies. However, as of last year’s statistics, the number decreased by 170, causing Pfizer to drop to third place in the MR headcount rankings, slightly below Japanese pharmaceutical companies Astellas Pharma and Takeda Pharmaceutical.

Medical sales representatives are recognized as formal occupations in the professional classifications of countries such as the United States and Japan, where they can be pursued as lifelong careers. Consequently, it is not uncommon to find representatives over the age of 50. However, in recent years, multinational pharmaceutical companies have faced pressures from patent expirations and intensified competition, leading to growing job insecurity among representatives over 40. For those over 50 who become unemployed, reemployment proves particularly challenging. This trend is not limited to Japan; recently, Da Mi also observed online complaints from Western medical sales representatives over 50, who reported being unemployed for two years and encountering significant setbacks in their job searches.

Pfizer's Expansion in the Japanese Market

Pfizer entered the Japanese market as early as 1953 under the name “Pfizer Tanabe.” Here, Dami will briefly introduce it to our readers.

In 1950, Pfizer researchers discovered and developed the company’s first patented product, oxytetracycline, a milestone for Pfizer. Prior to this, although Pfizer had pioneered the large-scale deep-tank fermentation process for penicillin production, it was merely recognized as a prominent U.S. manufacturer of active pharmaceutical ingredients (APIs). It was only after the development of oxytetracycline that Pfizer successfully transformed from an API manufacturer into a fully established pharmaceutical company.

In preparation for the market launch of oxytetracycline, Pfizer trained eight promotional representatives in advance. Upon the drug’s approval by the U.S. FDA on March 15, these eight representatives immediately deployed to the market, diligently introducing the new product to physicians. Within a year, the promotional team expanded to approximately 100 members.

These eight individuals are considered Pfizer’s earliest pharmaceutical sales representatives and can also be regarded as the first generation of modern pharmaceutical sales representatives in the United States.

Meanwhile, leveraging this product, Pfizer began to enter overseas markets and establish international divisions.

Pfizer Oxytetracycline Sold in Indian Pharmacies

In that year, Pfizer and Japan’s Tanabe Seiyaku signed a collaborative promotion agreement for oxytetracycline. In August 1953, the two companies further strengthened their partnership by jointly investing 100 million yen to establish Pfizer-Tanabe Inc. in Japan.

Subsequently, due to restrictions under Japanese policy, Pfizer established Taisho Pfizer Co., Ltd. in joint venture with Japan’s Taisho Pharmaceutical. By 1956, Pfizer had already established a comprehensive sales network in Japan, with offices set up in Tokyo, Osaka, and Hiroshima.

The image below shows a Pfizer medical representative in Japan during the 1960s, packing up to head to the next visit location.

Subsequently, as the demand for pharmaceuticals evolved with the times, Pfizer’s operations in Japan entered a new era. In June 1989, Taisho Pfizer was officially renamed “Pfizer Pharmaceuticals.”

Currently, Pfizer remains a leading multinational pharmaceutical company in Japan. According to Japanese media reports, Lyrica ranked second in Japan’s prescription drug sales last year.