benchmarks in thought leader management
DESCRIPTION
This is a demonstration of some key points from our work in the area of Fair Market ValueTRANSCRIPT
Benchmarks in Thought Leader ManagementManufacturer SurveyDecember 31,2007
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Study ObjectivesProvide participating companies with a competitive benchmark related to their management & compensation practices with contracted Thought Leaders (aka Key Opinion Leaders).
Provide a method of data collection within Anti-Trust Safe Harbors to assist companies in meeting regulatory statutes• Companies required to ensure compensation for
contracted Thought Leaders meets “Fair Market Values”of “legitimate consulting services.”
Begin to identify industry trends and best practices that allow for more efficient operation of this business process.
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12 Studies over 4 years
Thought Leader Segment
Manufacturer Segment
Vendor Segment
Year 1-2006 1 2 3
Year 2-2007 4 5 6
Year 3-2008 7 8 9
Year 4-2009 10 11 12
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Study Objectives
Thought LeaderDetermine Objective Data Points
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ManufacturerVendor
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Manufacturer Study Background6 Sections form 71 questions• Section 1-Demographics Section 4- Medical Content• Section 2-Advisory Boards Section 5-Lead Author• Section 3-Promotional Prgm Section 6-Clinical Trial
15 companies participated• 10 Pharmaceutical Companies
10 Big Pharma• 4 Biotech Companies• 1 Medical Device Company
A second medical device company participated, but could not answer the questions-No policy in place
Fielded from July – December 2007 via phone interview
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What are these payments called
S2.Q1. What term below, in your opinion, best describes the payment for theservices these Thought Leaders provide? (choose only a single answer)
8 53.3 53.3 53.34 26.7 26.7 80.03 20.0 20.0 100.0
15 100.0 100.0
consulting feesFee for svcsAdvisor feesTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Notice that no one called these fees Honoraria! Last year 18% responded with that answer.
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Most Common Payment
S2.Q3. When remitting fees to Thought Leaders for services provided,which of the following is the most common increment of payment?
1 6.7 6.7 6.73 20.0 20.0 26.7
11 73.3 73.3 100.015 100.0 100.0
Per HourPer DayPer EventTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Q7. When paying to the TL, which is the most common increment ofpayment in your company?
7 43.8 43.8 43.88 50.0 50.0 93.81 6.3 6.3 100.0
16 100.0 100.0
Per DayPer EventOtherTotal
ValidFrequency Percent Valid Percent
CumulativePercent
2007 Survey
2006 Survey
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Range for All Specialties0-500 0%
501-750 2%
751-1250 5%
1251-1750 10%
1751-2250 7%
2251-2750 6%
2751-3250 3%
3251-3750 0%
3751-4250 0%
4251-4750 0%
4751 or more 0%
No Set Fee 60%
Do Not Know 6%
69 specialties were measured
Only 34% of the time did acompany report having a set feefor a specific specialty.
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Payment for Travel
S2.Q5.Does your company pay for your travel time of the thoughtleader(the time spent in actual travel to and from the actual meeting)?
13 86.7 86.7 86.72 13.3 13.3 100.0
15 100.0 100.0
NoYesTotal
ValidFrequency Percent Valid Percent
CumulativePercent
S2.Q6.Do you believe your company will consider compensatingThought Leaders for their travel time (the time spent in actual travel to
and from the meeting) at some point this year?
9 60.0 60.0 60.06 40.0 40.0 100.0
15 100.0 100.0
NoYesTotal
ValidFrequency Percent Valid Percent
CumulativePercent
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Ad Board Compensation Limit
S2.Q14. Does your organization have some type of compensation limitregarding the amount of money they pay an individual Thought Leader as
an advisor?
9 60.0 60.0 60.04 26.7 26.7 86.72 13.3 13.3 100.0
15 100.0 100.0
NoYesDK/NATotal
ValidFrequency Percent Valid Percent
CumulativePercent
Of the 4 who responded the range was $30,000 to $65,000 annually. One suggested their rate would be in place by 1/1/08.