This is a demonstration of some key points from our work in the area of Fair Market Value

1. Benchmarks in Thought Leader Management
Manufacturer Survey
December 31,2007

2. Study Objectives
Provide 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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3. 12 Studies over 4 years
Thought Leader Manufacturer Vendor Segment
Segment 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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4. Study Objectives
Thought Leader
Determine
Objective
* Data Points
*
* * *
*
* *
Vendor * * * Manufacturer
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5. Manufacturer Study Background
6 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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6. What are these payments called
S2.Q1. What term below, in your opinion, best describes the payment for the
services these Thought Leaders provide? (choose only a single answer)
Cumulative
Frequency Percent Valid Percent Percent
Valid consulting fees 8 53.3 53.3 53.3
Fee for svcs 4 26.7 26.7 80.0
Advisor fees 3 20.0 20.0 100.0
Total 15 100.0 100.0
Notice that no one called these fees Honoraria!
Last year 18% responded with that answer.
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7. Most Common Payment
2007 Survey
S2.Q3. When remitting fees to Thought Leaders for services provided,
which of the following is the most common increment of payment?
Cumulative
Frequency Percent Valid Percent Percent
Valid Per Hour 1 6.7 6.7 6.7
Per Day 3 20.0 20.0 26.7
Per Event 11 73.3 73.3 100.0
Total 15 100.0 100.0
2006 Survey
Q7. When paying to the TL, which is the most common increment of
payment in your company?
Cumulative
Frequency Percent Valid Percent Percent
Valid Per Day 7 43.8 43.8 43.8
Per Event 8 50.0 50.0 93.8
Other 1 6.3 6.3 100.0
Total 16 100.0 100.0
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8. Range for All Specialties
0-500 0%
501-750 2%
751-1250 5%
1251-1750 10%
1751-2250 7%
69 specialties were measured
2251-2750 6%
2751-3250 3% Only 34% of the time did a
3251-3750 0%
company report having a set fee
for a specific specialty.
3751-4250 0%
4251-4750 0%
4751 or more 0%
No Set Fee 60%
Do Not Know 6%
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9. Payment for Travel
S2.Q5.Does your company pay for your travel time of the thought
leader(the time spent in actual travel to and from the actual meeting)?
Cumulative
Frequency Percent Valid Percent Percent
Valid No 13 86.7 86.7 86.7
Yes 2 13.3 13.3 100.0
Total 15 100.0 100.0
S2.Q6.Do you believe your company will consider compensating
Thought Leaders for their travel time (the time spent in actual travel to
and from the meeting) at some point this year?
Cumulative
Frequency Percent Valid Percent Percent
Valid No 9 60.0 60.0 60.0
Yes 6 40.0 40.0 100.0
Total 15 100.0 100.0
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10. Ad Board Compensation Limit
S2.Q14. Does your organization have some type of compensation limit
regarding the amount of money they pay an individual Thought Leader as
an advisor?
Cumulative
Frequency Percent Valid Percent Percent
Valid No 9 60.0 60.0 60.0
Yes 4 26.7 26.7 86.7
DK/NA 2 13.3 13.3 100.0
Total 15 100.0 100.0
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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