Companies’ Experiences with KOL Contract Negotiations Are Changing

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Data Product Team Leader

Pressure on groups working with HCPs and other thought leaders has increased over the past five years with the rise of the Sunshine Act in the US and increased regulatory scrutiny around the world.  CEI has conducted extensive research on how companies should compensate thought leaders and what represents fair market value in the current healthcare landscape.  We are going to be leading a webinar on Thursday, May 19th at 2:00pm Eastern time to discuss a range of topics associated with KOL engagement by pharmaceutical companies. Continue reading


Physician Fair Market Value: KOL Travel Compensation Across Different Tiers

By John Sweeney,
Statistical Analyst

In light of the Sunshine Act and the restrictions that are being placed on the pharmaceutical industry, there is much more scrutiny placed on these companies for overcompensating key opinion leaders for business and travel. Some life sciences companies are starting to adopt policies that highlight exactly how KOLs may be compensated and by how much and/or to what degree. Of these policies, most pharmaceutical companies provide a very vague overview explaining that travel provided to thought leaders must be reasonable and not excessive (i.e. below first class ticket). Continue reading


Loi Bertrand Update: Conseil d’Etat Prescribes a Healthy Dose of Vitamin C

Sarah Ray, regulatory affairs and safety researcher
By Sarah Ray,
Senior Research Analyst

Ever since its inception in 2011 and eventual adoption in 2013, the French Sunshine Act or Loi Bertrand has created a fervor.  Like its US counterpart, the French version aims to shed light on the life science industry’s interactions with “covered recipients” by requiring manufacturers to disclose any cash or in-kind benefits they provide to these individual and group organizations.  In the US, covered recipients refer to physicians and teaching hospitals.   In France, covered recipients include even organizations on the periphery of healthcare—organizations like publishing companies and prescription and dispensing software editors. Continue reading


Using KOL Segmentation to Diversify Thought Leader Pools

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Senior Research Analyst

When determining a thought leader’s fair market value, life sciences companies must first consider a physician’s scope of influence.  This determination is often influenced by a key opinion leader’s years of experience, their number of scientific publications or their career history.  These factors contribute to companies’ KOL segmentation practices, which are key to determining physician FMV.  Continue reading


EFPIA Member Companies and Associations Prepare for Transfer of Value Disclosures in 2016

Sarah Ray, regulatory affairs and safety researcher
By Sarah Ray,
Senior Research Analyst

With 2016 off to a start, it’s time to take a look at the increasing number of countries requiring life science teams to publicly disclose any payments provided to either physicians or healthcare organizations.  The European Federation of Pharmaceutical Industries and Associations (EFPIA) mandated countries with member associations to adopt its code on disclosing payments made to healthcare professionals and organizations no later than December 31, 2013.  However, the EFPIA value disclosures did not require member companies to begin collecting payment information until 2015.  Life science companies that are EFPIA members began documenting transfers of value as of the first of the year and are set to disclose these payments no later than June 30, 2016.  Continue reading


Determine HCP Fair Market Value with FMVConnect

Natalie DeMasi, clinical development and medical affairs researcher
By Natalie DeMasi,
Senior Research Analyst

Determining physician fair market value (FMV) payments for speeches, advisory boards or consulting can be at best a minor effort and at worst a major compliance headache.  FMV rates will vary by the speaker’s country, tier, type of activity and therapeutic area, meaning that teams may have to evaluate different rates for each individual speaker working at a given event.  Life sciences companies can turn to Cutting Edge Information to make FMV evaluations as painless as possible. Continue reading


Establishing KOL Travel Compensation at Fair Market Value

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Senior Research Analyst

In the course of working with pharmaceutical companies, many key opinion leaders must travel to contribute to advisory boards or speaking events.  As such, firms must determine how to compensate physicians for the time and cost of this travel.  However, there is no industry standard for KOL travel compensation.

Through its fair market value research, Cutting Edge Information talked to several life sciences executives regarding key opinion leader travel compensation.  When working with KOLs, companies’ travel considerations fall into two different categories: Some companies compensate for activities or meeting expenses only while others provide for these expenses as well as travel honoraria. Continue reading


Effective Utilization of Key Opinion Leader Tiers

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Senior Research Analyst

Many pharmaceutical and life science companies have a three tier system in place for determining key opinion leaders’ fair market value.  Companies also typically have an “exceptional” tier for those that go beyond a tier 1 level of influence.  Among those participating in our research, almost 20% do not have rates or procedures in place for the exceptional tier, sticking with the 3 tiers, typically in order from tier 3 at the local level to tier 1 at the global level of influence.  Continue reading


Defining Appropriate Fair Market Value for Specific KOL Activities

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Senior Research Analyst

Collaboration with physicians and top thought leaders is key to many life sciences operations.  From speaker programs to clinical trials, key opinion leaders (KOL) take on critical tasks to help pharmaceutical and medical device companies develop the best possible products and educate the healthcare audience.  However, life sciences companies must take a number of factors into consideration when determining fair market value for specific KOL activities.  In addition to a doctor’s geography and sphere of influence, companies should also consider the type of tasks that they are asking KOLs to perform. Continue reading


Exploring Global FMV Trends to Set Physician Compensation Rates

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Senior Research Analyst

One of the biggest challenges when determining what constitutes physician fair market value (FMV) rates among healthcare providers is understanding the geographic differences that occur around the world.  While there will always be some variation between therapeutic areas and for different types of activities, there are some broad global FMV trends that we will explore here. Continue reading