SOURCE: Cutting Edge Information

Cutting Edge Information

April 04, 2016 10:46 ET

Large Pharmaceutical Companies Utilize Local-Level Healthcare Providers 38 Percent More Frequently Than Small Companies

Small Companies are Driving Utilization of Exceptional Global-Level Thought Leaders

RESEARCH TRIANGLE PARK, NC--(Marketwired - April 04, 2016) -  Tier 3 thought leaders are leveraged in 18 percent of large pharmaceutical and medical device companies' engagements, compared to 13 percent of contracts with small companies. Instead, small companies tend to engage more with Exceptional-level healthcare providers. The difference in tier usage that falls in line with company size and revenue (those with over $2 billion in annual revenue and those with less than $2 billion in annual revenue) could be the result of several different factors.

According to Cutting Edge Information's annual review of fair market value (FMV) in the life science industry, small companies in particular are more likely to recruit thought leaders with the greatest degree of influence and experience while products are still in development. These smaller companies may be in more urgent need of information on the state of clinical practices in a particular therapeutic area. They may also have less flexibility in the number of thought leaders and the number of interactions they can afford. Their aim, therefore, is to maximize the impact of events with higher-tier thought leaders.

Large companies that are more established on the clinical side work more often with Tier 3 to fine-tune adjustments to marketing and educational practices. The companies' larger size allows them to be more flexible in the number of thought leaders and interactions they can afford to run. On the other hand, smaller companies may be in more urgent need of information on the state of clinical practice in a particular therapeutic area. Their aim is to maximize the impact of events with higher-tier thought leaders.

"High-tier thought leaders bring significant experience to discussions that assist companies in developing the most effective products and increasing worldwide reputation," said Jacob Presson, senior analyst at Cutting Edge Information, "Though low-tier thought leaders cannot yield the same influence, they are still a worthwhile investment for large companies."

Global Key Opinion Leader Compensation 2016- CEI's Annual Review of Fair Market Value provides an overview of FMV compensation trends in key therapeutic markets across the industry. The study contains year-over-year data comparisons in FMV compensation rates and highlights emerging trends. In addition, life science executives can use this report to answer the following questions:

  • What are the most relevant factors to consider when determining FMV compensation?
  • Are my company's FMV payments for specialists and non-MDs defensible and clear? 
  • How do our rates compare to other companies' compensation?
  • How do subspecialists fit into companies' FMV determination processes?
  • What criteria should companies weigh when segmenting/tiering KOLs?

For more information about Cutting Edge Information's 2016 fair market value report, please visit http://www.cuttingedgeinfo.com/research/medical-affairs/thought-leader-fmv-physician-fee-schedules/.

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