SOURCE: Cutting Edge Information

March 19, 2008 07:26 ET

Large Pharmaceutical Companies Tend to Pay Triple What Other Size Companies Do for KOL Speakers

RESEARCH TRIANGLE PARK, NC--(Marketwire - March 19, 2008) - A recent study highlights the unique challenges that pharmaceutical companies face when engaging with thought leader consultants. According to a new Cutting Edge Information study, "Thought Leader Compensation: Establishing Fair-Market Value Procedures," large pharmaceutical companies typically pay more in additional honoraria for thought leader consultants than either small or mid-sized companies. (http://www.PharmaOpinionLeaders.com).

Across all company sizes, the average honorarium for a key opinion leader to deliver a scientific speech is $3,200 and $2,300 for a promotional speech, according to the study. Large pharmaceutical companies, however, can easily pay more than $4,800 and $3,000 for the same thought leader to perform the respective activities. In comparison, a typical KOL will receive approximately $1,600 from small companies for either type of speaking engagement and approximately $1,800 from mid-sized companies for either scientific or promotional speeches.

"Because of their high-profile status and big pockets, large companies offer and pay higher honoraria to ensure they engage the best thought leaders possible," said Elio Evangelista, a research team leader at Cutting Edge Information. "This is especially true in instances where a company would require a top-tier key opinion leader, such as for a speech at a large symposium, for instance." 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 new 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. For more information or to learn about other Cutting Edge Information research, contact Elio Evangelista at elio_evangelista@cuttingedgeinfo.com or 919-433-0214.

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