SOURCE: Cutting Edge Information

April 18, 2008 07:28 ET

Large Pharmaceutical Companies Pay $3,200 for Primary Care Speaker, on Average

RESEARCH TRIANGLE PARK, NC--(Marketwire - April 18, 2008) - A recent study highlights the unique challenges that pharmaceutical companies face when engaging with thought leader consultants. According to the study authored by Cutting Edge Information, "Thought Leader Compensation: Establishing Fair-Market Value Procedures," large pharmaceutical companies pay, on average, $3,261 in additional fees for a primary care physician to deliver a scientific speech (http://www.PharmaOpinionLeaders.com).

Speaker fees tend to be significantly higher for large, well-established companies than they are for small companies, according to the study. For instance, small companies pay an average speaker fee of $1,022 for a scientific speech from a primary care physician, whereas a similar speech from a primary care provider costs a large company upwards of $3,000. Pharmaceutical companies compensate their thought leaders through additional speaking fees in addition to hourly rates for other services performed.

"Because of their high-profile status and big pockets, large companies offer and pay more to ensure that they recruit the best thought leaders possible," said Elio Evangelista, a research team leader at Cutting Edge Information. "This is often reflected in the additional honoraria that top-tier thought leaders garner, and it is especially true when top-tier thought leaders consult for larger pharmaceutical organizations." Large companies typically compensate at lower hourly rates than other company sizes because they contract thought leaders at a lump sum price, rather than an open-ended hourly rate.

Cutting Edge Information's report, "Thought Leader Compensation: Establishing Fair-Market Value Procedures," includes detailed spending benchmarks and segmentation criteria across an array of company sizes and areas of concentration. With more than 500 data sets included in the report, Cutting Edge Information analyzed 40 companies in the pharmaceutical arena to conduct the study.

"Thought Leader Compensation: Establishing Fair-Market Value Procedures," available at http://www.PharmaOpinionLeaders.com/, is one tool that pharmaceutical companies can use to determine fair-market value for their opinion leader and relationships. Aside from in-depth metrics, the report also provides solutions to the top challenges faced by thought leader management teams, including:

--  Fair-market value benchmarks
--  Additional fees for thought leaders authoring a report
--  Travel expense compensation
--  Advisory panel expenditures
    

To view a summary of this report, visit http://www.cuttingedgeinfo.com/thoughtleadercompensation/PH106_Download.asp#body.

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