Benchmarking Thought-Leader Fair Market Value in the Healthcare Industries

STUDY OVERVIEW

Most pharmaceutical and medical device companies compensate health care providers for services such as speaker programs or advisory boards; at the same time, organizations understand the need to establish clear standards of payments to remain compliant and in good competitive standing in the industry. However, establishing precise fair market value (FMV) compensation rates is a challenge that requires taking into account multiple factors including thought leader tiers, geographic region, therapeutic area, and activity type.

Best Practices, LLC undertook benchmarking research to examine FMV levels and key trends in FMV compensation rates for thought leaders across KOL tiers, therapeutic areas, countries, and activities. The report also provides FMV compensation rates for event preparation and for non-specialists.

KEY TOPICS

• Overall FMV Rates Across KOL Tier
• FMV Rates Across Therapeutic Areas
• FMV Rates Across Countries
• FMV Rates for Non-specialists
• FMV Rates for KOL Activities
• FMV Rates for Event Preparation
• Maximum FMV Rates Policy
• Best Practices & Lessons Learned

• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Total benchmark class, pharma companies, medical device companies, third party providers, large/medium/small companies
• Hourly FMV rates across therapeutic areas
• Hourly FMV rates for additional therapeutic areas
• Hourly FMV rates for different countries
• Additional FMV rates across different countries
• Hourly FMV rates for non-specialists – Total benchmark class, US and Canada, Europe
• Hourly FMV rates for thought leader activities – Total benchmark class, US and Canada, Europe
• Hourly FMV rates for preparation time for listed activities – Total benchmark class, US and Canada
• Setting up of maximum FMV rates per hour for KOLs within benchmark companies; Differentiation of maximum FMV rate per hour
• Maximum allowable hourly rate paid to KOLs in each of the listed therapeutic areas, listed countries
• Benchmark companies’ total annual compensation limit policy for KOLs
• Approaches used to establish fair market value (FMV) for thought-leader compensation
• Fund allocation for additional expenses
• Effectiveness of various criteria to set honoraria rates
• Best practices and top challenges for determining fair market value for industry KOLs and thought leaders

• Most Companies Have Set Maximum FMV Rates: More than 75 percent have defined maximum FMV rates for KOLs. Close to 40 percent differentiate maximum FMV rates based on both country and therapeutic area. About half have set annual compensation limit to handle all KOL interactions.

Best Practices, LLC engaged 30 Medical Affairs and Marketing leaders from 26 companies in the pharmaceutical & healthcare industry.

Industries Profiled:
Biotech; Pharmaceutical; Biopharmaceutical; Health Care; Medical Device; Science; Consumer Products; Manufacturing; Research; Clinical Research; Laboratories; Communications


Companies Profiled:
Acorda Therapeutics; AstraZeneca; Astellas; Apricus Biosciences; Inc.; AZURE8; LLC; Baylis Medical; Boehringer Ingelheim; BIOCAD; Thermo Fisher; Cipher Pharmaceuticals Inc.; Grunethal; GlaxoSmithKline ; LEO Pharma; Lung Biotechnology; Medtronic; Ortho-Clinical Diagnostics; Novartis; Pfizer; Phillips; Quintiles; Roche; Sanofi; Synchrony Healthcare Communications; Teva Neuroscience; Theravance; Vifor Pharma

If you purchase Best Practice Database document(s), you will have 30 days from the date of purchase to apply some or all of the cost of the document(s) toward the cost of a Full Access Individual, Pharma, Group or University Membership. Write us at DatabaseTeam@bestpracticesllc.com or call David Guinn at 919-767-9179 if you have any questions.