benchmarks in thought leader management

Benchmarks in Thought Leader ManagementManufacturer SurveyDecember 31,2007

www.BioPharmaAdvisors.net©BioPharma Advisors LLC

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.


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


Study Objectives

Thought LeaderDetermine Objective Data Points

* **

**

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** **

ManufacturerVendor


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


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.


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


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


CumulativePercent

2007 Survey

2006 Survey


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.


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


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


CumulativePercent


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


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.

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