Benchmarking Thought-Leader Fair Market Value in the Healthcare Industries

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


Companies Profiled:
Acorda Therapeutics; Apricus Biosciences; Inc.; Astellas; AstraZeneca; AZURE8; LLC; Baylis Medical; BIOCAD; Boehringer Ingelheim; Cipher Pharmaceuticals Inc.; GlaxoSmithKline ; Grünenthal; LEO Pharma; Lung Biotechnology; Medtronic; Novartis; Ortho Clinical Diagnostics; Pfizer; Philips Healthcare; QuintileslMS; Roche; Sanofi; Synchrony Healthcare Communications; Teva Pharmaceutical Industries Ltd; Theravance; Thermo Fisher Scientific; Vifor Pharma

Study Snapshot

Best Practices, LLC engaged 30 Medical Affairs and Marketing leaders from 26 pharmaceutical, biotech, medical device and 3rd party providers from across the globe in this research through a benchmarking survey. Sixty percent of the participants serve at the Director level and above. Half of the respondents were from the U.S.

Key topics covered in this report include:

• FMV compensation for different levels of thought leaders
• FMV compensation for different regions and therapeutic areas
• FMV compensation for different physician activities
• FMV compensation paid to non-specialists

• 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.

• KOL’s Authority and Experience Matter While Setting Honoraria Rates: KOL’s authority in disease state and their experience level are the highly effective criteria for setting FMV rates at 54 and 33 percent of benchmarked companies, respectively.

Sr. No.	Topic	Slide No.
I.	Executive Summary	pgs. 3-7
	Research Overview	pg. 3
	Participating Companies	pg. 4
	High-Level Recommendations	pg. 5
	Key Findings	pgs. 6-7
II.	Overall FMV Rates Across KOL Tier	pgs. 8-17
III.	FMV Rates Across Therapeutic Areas	pgs. 18-21
IV.	FMV Rates Across Countries	pgs. 22-25
V.	FMV Rates for Non-specialists	pgs. 26-29
VI.	FMV Rates for KOL Activities	pgs. 30-33
VII.	FMV Rates for Event Preparation	pgs. 34-37
VIII.	Maximum FMV Rates Policy	pgs. 38-41
IX.	Best Practices & Lessons Learned	pgs. 42-48
X.	Study Participant Demographics	pgs. 49-50
XI.	About Best Practices, LLC	pgs. 51-52

• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Total benchmark class
• Company types represented in the research
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Pharmaceutical companies
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Medical devices and diagnostics companies
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Third party providers
• Participating companies' revenue for the last fiscal year in U.S. dollars
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Large companies
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Medium companies
• Hourly FMV rates paid to KOLs across all therapeutic areas and countries – Small companies

• Highest therapeutic area familiarity of benchmark participants
• Hourly FMV rates across therapeutic areas
• Hourly FMV rates for additional therapeutic areas

• Top countries represented in this research
• Hourly FMV rates for different countries
• Additional FMV rates across different countries

• Hourly FMV rates for non-specialists – Total benchmark class
• Hourly FMV rates for non-specialists in US and Canada
• Hourly FMV rates for non-specialists in Europe

• Hourly FMV rates for thought leader activities – Total benchmark class
• Hourly FMV rates for thought leader activities in US and Canada
• Hourly FMV rates for thought leader activities in Europe

• KOL compensation policy for preparation time
• Hourly FMV rates for preparation time for listed activities – Total benchmark class
• Hourly FMV rates for preparation time for listed activities in 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
• Maximum allowable hourly rate paid to KOLs in each of the 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 for determining fair market value for industry KOLs and thought leaders
• Top challenges encountered in attempting to determine fair market value for thought leaders