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Page | 1
Strategic Benchmarking Research & Analysis
Benchmarking Advisory Board Management At Small
Pharmaceutical & Medic...
Page | 2
Table of Contents
 Executive Summary pgs. 3-8
 Research Overview pg. 3
 Participating Companies pg. 4
 Key Re...
Page | 3
Field Research & Insight Development:
Thirty-five survey responses from Medical Affairs,
Marketing and Patient A...
Page | 4
Universe of Learning: Research Participants from Study
This study engaged 35 executives from 29 leading life scie...
Page | 5
Segments and Abbreviations
Segments:
• TBC: Total Benchmark Class
• Small Companies Segment (SC): SC is defined a...
Page | 6
Achieving Success At Advisory Boards Is A Function Of 7 Critical Steps
Set Clear
Objectives
Target Right
Particip...
Page | 7
Key Findings and Insights
 Physician and Clinical Advisory Boards Most Common: Six out of 10 total benchmark mai...
Page | 8
8%
17%
42%
50%
67%
20%
29%
49%
60%
60%
Others
Payer Advisory
Board
Marketing Advisory
Board
Clinical Advisory
Boa...
Page | 9
Q. Please provide the number of participants present in your advisory board.
On average, both total benchmark and...
Page | 10
Interview participants reported that the size varies according to a number of factors beginning with the
key pur...
Page | 11
Q, Please indicate the preferred reach of advisory board members.
N=11-23
Companies continue to seek out nationa...
Page | 12
Q. Do you outsource any part of the advisory board work?
N=25
Fifty-two percent of benchmark participant outsour...
Page | 13
Q. What are the top three challenges you encountered when conducting advisory boards?
N=22
Benchmark class membe...
Page | 14
N=35
The vast majority of insights (approximately 63% ) in this benchmark study come from bio-pharma professiona...
Page | 15
Q. Please indicate your industry. [Choose all that apply.]
Participation came from across various industries in ...
Page | 16
Best Practices®, LLC is an internationally recognized thought leader in the field of best practice
benchmarking®...
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Benchmarking Advisory Board Management at Small Pharmaceutical Organizations

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Bio-pharmaceutical Companies rely heavily on Advisory Boards for strategic inputs and direction on various marketing, clinical, payer and physician related issues that affect business operations.

Best Practices, LLC recently undertook a study to establish benchmarks on effective advisory board management at small pharmaceutical and medical device organizations. This study provides insights and metrics on appropriate structure for various types of advisory boards, selection of advisory board members, advisory board operational and resource benchmarks. It also highlights the top challenges, winning strategies and best practices in conducting effective advisory boards at small bio-pharmaceutical companies.

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Benchmarking Advisory Board Management at Small Pharmaceutical Organizations

  1. 1. Page | 1 Strategic Benchmarking Research & Analysis Benchmarking Advisory Board Management At Small Pharmaceutical & Medical Device Organizations
  2. 2. Page | 2 Table of Contents  Executive Summary pgs. 3-8  Research Overview pg. 3  Participating Companies pg. 4  Key Recommendations pg. 5  Segments and Abbreviations pg. 6  Key Findings & Insights pgs. 7-14  Structure Of Advisory Boards pgs. 15-23  Selection of Advisory Board Participants pgs. 24-32  Operations Of Advisory Boards pgs. 33-46  Cost Of Advisory Boards pgs. 47-53  Challenges & Best Practices pgs. 54-60  Benchmark Profile pgs. 61-64  About Best Practices, LLC pg. 65-66
  3. 3. Page | 3 Field Research & Insight Development: Thirty-five survey responses from Medical Affairs, Marketing and Patient Advocacy leaders at 29 biopharmaceutical & Medical Device companies. This reports provides segmentation and insights from a mid-sized company perspective. Additional deep-dive interviews with 7 selected executives who participated in the study. • Identify Critical Benchmarks for advisory boards Operations • Provide Cost Benchmarks for Running advisory boards Research Objectives & Methodology Research Objectives:  Best Structure for Different Types of Advisory Boards  Selection of Advisory Board Participants  Benchmarking Operations Of Advisory Boards  Cost Of Advisory Boards  Top Challenges & Best Practices Of Conducting Advisory Boards Business Objective: A well-run advisory board requires optimum investment in resources and operations. To maximize the return on investment, life science professionals must ensure the quality of meetings and the dialogue that occurs with the advisory board. This research can help pharmaceutical and medical device executives to best run and organize advisory boards.
  4. 4. Page | 4 Universe of Learning: Research Participants from Study This study engaged 35 executives from 29 leading life sciences companies. Segmentation analysis was key to examining trends and effective practices. Twelve participants from 12 companies with annual revenues less than $1 Billion USD comprise the Small Companies Segment (SC). Most responses came from the United States and Canada (63%) followed by Asia (20%). Benchmark Class Small Companies Segment
  5. 5. Page | 5 Segments and Abbreviations Segments: • TBC: Total Benchmark Class • Small Companies Segment (SC): SC is defined as companies with < $1 billion annual revenue. Abbreviations: • Advisory Boards: Advisory Boards • TBC: Total Benchmark Class • SC: Small Companies
  6. 6. Page | 6 Achieving Success At Advisory Boards Is A Function Of 7 Critical Steps Set Clear Objectives Target Right Participants Keep Communication Flowing To Advisory Board Members Target Right Participants Track Payments To Ensure Compliance Decide Meeting Frequency & Duration Share Results Align Advisory Board Responsibility To A Function Set Clear Objectives Best Practices for Effective Advisory Boards
  7. 7. Page | 7 Key Findings and Insights  Physician and Clinical Advisory Boards Most Common: Six out of 10 total benchmark maintain physician and clinical advisory boards.  Segments: Two-thirds of the small companies have physician advisory boards currently present while half of them have clinical advisory boards. A little less than 50% of small companies are hosting marketing advisory boards.  Many Companies Do Not Use Payer Advisory Boards: Payer advisory boards are relatively new and only 29% of total benchmark currently use them. With the implementation of the Affordable Care Act, the importance of payer advisory boards will increase over time.  Segments: Only 17% of small companies have payer advisory boards, indicating that they are still in nascent stages in this segment.  Number of Participants Range From 9-11 Across Different Advisory Boards: Payer and clinical advisory boards average around 9 participants while marketing advisory board participants’ average at 11 and physician advisory boards at 10.  Segment: Similar to the total benchmark, small companies have average, of 9, 11 and 10 participants across clinical, marketing and physician advisory boards. However, average participant counts for benchmark companies and small companies vary slightly for payer advisory boards.  Top Challenges: The top three challenges that study participants face when conducting advisory board meetings are selecting members/location(45%), managing advisory boards (36%), and physician availability (36%). The following key findings and insights emerged from this study.
  8. 8. Page | 8 8% 17% 42% 50% 67% 20% 29% 49% 60% 60% Others Payer Advisory Board Marketing Advisory Board Clinical Advisory Board Physician Advisory Board Total Benchmark Class Small-cap Companies Q. Please indicate the advisory board(s) that currently has a presence in you organization. Compared to 60% of total benchmark, 67% of small companies have physician advisory boards, while half currently support clinical advisory boards. Compared to the total benchmark, marketing and payer advisory boards are less common at small companies. Small Companies Largely Host Physician and Clinical Advisory Boards % Respondents N=12 Others: Patient, Scientific Advisory Board Area Of Advisory Board N=35
  9. 9. Page | 9 Q. Please provide the number of participants present in your advisory board. On average, both total benchmark and small companies have similar number of participants across clinical, marketing and physician advisory boards. However, the number of participants for payer advisory boards is less at small companies. Number Of Advisory Board Participants At Total Benchmark Class and Small Companies Match N=11-22 9.2 11.2 9.4 10.2 8.8 10.9 8.2 9.9 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Clinical Advisory Board Marketing Advisory Board Payer Advisory Board Physician Advisory Board Average Number Of Participants in Each Segment Total Benchmark Class Small-Cap Companies N=3-7
  10. 10. Page | 10 Interview participants reported that the size varies according to a number of factors beginning with the key purpose, regional focus and the level of clinical / scientific expertise required for the advisory board. Factors Influencing Number of Advisory Board Participants Factors Influencing Advisory Board Structures National KOLs vs Regional KOLs Advisory Board Purpose Therapeutic Area Clinical Trial Experience Geography Need for Scientific Expertise
  11. 11. Page | 11 Q, Please indicate the preferred reach of advisory board members. N=11-23 Companies continue to seek out national participants or create advisory boards with a national reach, as opposed to a regional reach. That said, regional participants can be important for both physician and payer advisory boards as companies will explore regional regulations and differences that can influence how a drug is presented in a specific geography National Participants and Reach Favored for Most Advisory Boards % Respondents Reach of Participants Total Benchmark Class 86% 47% 64% 52% 5% 26% 36% 13% 9% 26% 35% Clinical Advisory Board Marketing Advisory Board Payer Advisory Board Physician Advisory Board National Regional Both Small-cap Companies N=5-8 86% 50% 63% 63% 14% 33% 13% 13% 17% 25% 25% Clinical Advisory Board Marketing Advisory Board Payer Advisory Board Physician Advisory Board
  12. 12. Page | 12 Q. Do you outsource any part of the advisory board work? N=25 Fifty-two percent of benchmark participant outsource some part of advisory board work to vendors. Similarly, 55% of small companies outsource advisory board related jobs to vendors. Small Organizations and Total Benchmark Class Outsource Almost Same Percentage of Advisory Board Work % Respondents Yes, 52% No, 48% Total Benchmark Class Outsourcing Yes, 55% No, 45% Small-cap Companies
  13. 13. Page | 13 Q. What are the top three challenges you encountered when conducting advisory boards? N=22 Benchmark class members identified several challenges that they face while conducting advisory boards meetings. The top three challenges are selecting members (45%), managing and planning advisory boards (36%) and physicians availability (36%). Selecting Appropriate Members is Most Tricky % Respondents 14% 14% 18% 23% 23% 27% 27% 36% 36% 45% Regulatory Hurdles Others Fees Scheduling Ensuring Actionable Endpoints Content Getting Active Participation Physcian's Avaliability Moderating/Management/Planning Selecting Members/Location Top Challenges Other Responses • How to keep a stable group of advisors • Getting contracts back from Legal in a timely manner • Commercial involvement
  14. 14. Page | 14 N=35 The vast majority of insights (approximately 63% ) in this benchmark study come from bio-pharma professionals serving the United States market. Study insights were also contributed from bio-pharma leaders working in Asian, European, Middle East and Australian markets. Benchmark Research Captures Insights Mainly From US, Asia and Europe % Respondents US and Canada: 63% Europe: 11% Asia: 20% Middle East: 3% Australia: 3% Q. Contact Information: Please provide the following information, which will be used for classification purposes and to ensure that you receive your copy of the study deliverable. Geography
  15. 15. Page | 15 Q. Please indicate your industry. [Choose all that apply.] Participation came from across various industries in each segments. Overall 71% of companies represented pharma industry while around 20% were from bio-tech and medical devices each. Insights Harvested from Organizations Representing Different Industries % Respondents N=35 Others: Nutrition Service provider Industry 71% 23% 20% 9% 6% 77% 30% 67% 0% 0% 80% 20% 20% 10% 10% 58% 25% 25% 17% 8% Pharmaceutical Biotechnology Medical Device Diagnostic Other Total Benchmark Class Large Companies Mid-cap Companies Small Companies
  16. 16. Page | 16 Best Practices®, LLC is an internationally recognized thought leader in the field of best practice benchmarking®. We are a research, consulting, benchmark database, publishing and advisory firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by leveraging the best business practices, operating tactics and winning strategies of world-class companies. 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 (Phone): 919-403-0251 www.best-in-class.com Learn More About Our Company:

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