SB II

There is discussion here and it is likely the only option by 2016, 2016 is as bad for a company as it can be and it is not addressable through staff or expense reductions, BB will continue to cut to drive stock price and EPS prior to that, read up on Amgen executive comp change, they have incented all senior staff to think one quarter at a time, shameful, - SB

 

The INBU has been told Amgen has tried CSO in the past and it doesn't work. We've been told by DB that they don't intend to have a CSO in the future. When you say they will go CSO, does that mean:

1. The convert current reps to CSO reps to save on salary and benefits

2. Hire completely new reps that they have to train and build relationships to promote products

3. A mix of one and two but mostly number one

As far as timing, when will Amgen announce this (October 2015?) versus when do they plan to implements (January 1st 2016?)

 

Thank you for your help and insight. Can you tell us the future of US PRO going forward!
Staffing? Moving out of ATO? How many are leaving or RIF'd this pass? Any info will help!

 

Just curious - How does that happen after multiple CC wins? Politically motivated? I'd expect poor performers to go first (MS).

 

INBU 45 reps...Yes this continues, the OBU and INBU will be moving to CSO staff by end of next year, BCBU won't because this is already in their plan so not much change for them. Ranking risk INBU is highest, followed by OBU followed by BCBU. -SB

SB please help me understand:
1. Ranking risk INBU is highest ... Meaning they are most likely to see the most reps displaced?
2. Out of the 45 reps cut from INBU, how do they determine who stays and who goes?
3. How will CSO differ from Amgen? Less pay? No 401k? Benefits? I've never worked for one.

Thanks-

 

Many thanks for your continued info, SB. Will be at an OBU sales conf. next week; will be very interesting to see what is told to the reps. Upper mgt has to know about Cafe Pharma and your posts...

 

for number one they will start to backfill departing staff with CSO staff, likely in Q2 and by hear end they will transition remaining staff to CSO, the range is 50% to 75% and they become employees of the CSO. for two yes for any that are backfilled, same as they would do for a new Amgen employee so no difference here. the initial plan is to stop back filling with new amgen sales reps in Q2 and how it will be communicated is not clear, by Q3 of 2015 they company will decide how big the conversion is, 50% or 75% and tell a similar story, position of strength, preparing for the future, etc, - SB

 

INBU has the most consistent negative change over the next two years and the greatest loss of revenue as well, Enbrel and ESA lose sig dollars and there is no replacement, their only new product is a small product and shares revenue with AZ, the span of control is poor and they are overstaffed today by 40 to 45, on every count they are most poorly positioned. CSO salary cut will be 25% and target pay will decrease by 15% to 20%, you will not have the Amgen 401k or benefits, all will come from the cso, - SB

 

Thanks SB. But what's going on in USPRO? Really would find any info helpful in decision making process!!! Don't want to give up VTP and get caught in RIF!! Looking for info more towards 2015, 2016...if I stay what will RIF come next for us? Thanks for your help!

 

Not to sound dumb here, but what does CSO stand for? Thanks.

 

Disregard. Figured it out...

 

SB, on a previous post you said that Amgn would put up a serious fight if a takeover was attempted. I found the passion in your tone a little odd for just an insider, so it me think that it was coming from BB himself. Selling out to a Pfizer or competitor makes lots of sense financially. How come the change of heart at the top?

 

SB - There has been much information shared by you and thank you so much. I received a VTP and initially thought I would not take it, as I feel I would survive the RIF, but with the CSO replacement on the horizon for INBU in 2015, I am not sure. Given the situation, what is your advice? I already am "retirement eligible" by Amgen policy. Should I assume the next packages will not be as lucrative and that moving to a CSO position would be without an Amgen package? Should I take the money and run? Help!

 

Heard LC is taking the VTP...Have you heard about anyone else?

 

Take the VTP especially if you're eligible for the full package! RIFs won't stop so take while the taking is good!!!

 

AB, CD, EF, GH, IJ, KL, MN and O took the Package.

 

Although I did chuckle at this I would still appreciate knowing if anyone else is taking the VTP from USPRO...If our ED's are leaving well maybe we should all consider it!!!

 

Yes, was told the same today, - SB

 

I would assume next package will not be as valuable, recall last VTP was in 2007 so some time ago, for anyone retirement eligible I would almost always say take it, if RSD definitely, if DM most likely if rep a bit less so based on stock value by level. No reason to think things will get better, good luck to you, - SB

 

SB-any thought to the few open DM jobs that were posted and conducted interviews just right before the layoff news? INBU, BCBU, and OBU were holding interviews and sent messages to candidates telling them sorry, but we're in a hold pattern. Will these open back up?