SOURCE: Cutting Edge Information

November 13, 2007 07:27 ET

Small Companies Pay Up to 46% More Than Large Companies for Thought Leaders' Services

RESEARCH TRIANGLE PARK, NC--(Marketwire - November 13, 2007) - A new study finds that small pharmaceutical and biotechnology companies pay between 30% and 46% more in hourly honoraria to thought leading physicians than their larger competitors, according to Cutting Edge Information (http://www.CuttingEdgeInfo.com).

Cutting Edge Information's Study, published this month, shows that small companies pay influential physicians an average minimum hourly fee of $340, compared to large companies' average of $261 per hour. On the contrary, small companies pay thought leaders a maximum of $734 per hour, $200 more than the large company maximum of $534 per hour.

"Thought Leader Compensation: Establishing Fair-Market Value Procedures," available at http://www.ThoughtLeaderCompensation.com, is a detailed study designed to help pharmaceutical and medical device manufacturers remain compliant, as well as develop fee schedules for physicians' consulting and advisory activities. The study provides fair-market value benchmarks of hourly rates, as well as additional fees for services, such as:

--  Delivering a promotional or scientific speech
--  Leading, moderating or participating in an advisory panel
--  Writing a medical publication
    

"Fair-market value benchmarks are an important tool that companies use to determine opinion leader fee schedules," said Elio Evangelista, research team leader at Cutting Edge Information. "Our study is part of an annual effort to provide up-to-date fair-market value benchmarks across multiple therapeutic areas and for companies of all sizes."

The study reveals that small companies are paying thought leaders more up front by the hour to attract these physicians' services. Large companies often have so much name recognition, as well as a variety of research opportunities, that thought leaders are often eager to work with them. Furthermore, large companies are able to pay additional fees for speakers, advisory board members and publications authors while small companies typically do not have the funds to do so.

"Thought Leader Compensation: Establishing Fair-Market Value Procedures" is a study of 46 pharmaceutical, biotechnology, medical device and third-party providers' fee schedules for physicians across 20 therapeutic areas and in various specialties. The report includes detailed fair-market value benchmarks culled from top companies, such as Bristol-Myers Squibb, TAP Pharmaceutical and Novartis.

Download a free summary of "Thought Leader Compensation: Establishing Fair-Market Value Procedures" at: http://www.cuttingedgeinfo.com/thoughtleadercompensation/PH106_Download.asp#body

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