Merck to reduce sales force by 1,200

WHITEHOUSE STATION, N.J. Merck has announced plans to cut the size of its sale force by 1,200 positions this month after failing to win regulatory approval for a new heart drug, according to published reports.

The sales representatives, who work in locations across the U.S., will be notified through the end of the month, and the cuts are expected to be completed by July, the company said. The cuts will impact employees who sell Merck’s vaccines as well as primary care medicines, which include treatments for high cholesterol.

Kenneth Frazier, president of global human health, said the job cuts were part of the company’s ongoing efforts to reduce operating costs. “With eight successful launches of products since 2006 behind us and with an unexpected delay in a new product approval, we decided to accelerate the achievement of efficiencies,” he said.

In 2005, the drug maker initiated a massive restructuring effort to reduce operating expenses by as much as $5 billion. The restructuring effort included reducing its workforce by 7,000, a number the company has already exceeded.

The company would not say how many of the latest job cuts were a direct result of the surprise failure of Cordaptive, a new cholesterol-lowering drug, to win marketing approval from the FDA.