Healthy Skepticism Library item: 16783

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Electronic Source

Silverman E
Drugmakers Place Caps On Speaker Fees: Study
Pharmalot 2009 Nov 2
http://www.pharmalot.com/2009/11/drugmakers-place-caps-on-speaker-fees-study/

Full text:

As the controversy rages over speaker fees given to physicians, some drug and device makers claim they have instituted annual compensation caps, at least according to a new survey of some 40 companies. To wit, 71 percent of drugmakers and 67 percent of device makers say they have taken this step, according to Cutting Edge Information, a research firm. Its survey also shows all large drugmakers have instituted a cap, but only 56 percent of smaller ones have done so.
Large and small was defined based on rankings by Pharmaceutical Executive magazine. In any event, the average large pharma cap is is $69,000, almost $25,000 more than the average annual cap of $44,800 for all drugmakers. Interestingly, small drugmakers have the next highest cap at $57,000. Mid-size companies maintain a cap of $33,000, on average. Device makers have a similar annual cap as mid-size companies, with an average of $30,000. Biotechs have an average annual cap of about $44,000, according to the survey
Not surprisingly, there is considerable variance among companies, which weren’t named. One drugmaker has a cap of $10,000 while another allows physicians to make up to $100,000. And 85 percent of all drugmakers participating in the study apply their compensation caps for physician activities companywide.
Another nugget: 80 percent of those with specific caps apply them only to speaker program spending on physicians. The other 20 percent of responding companies have caps that apply to all physician dealings with marketing, in which most speaker programs are included. Note: this cap will not apply to any medical ad boards or consultation that a thought leader may perform for the company, according to the research firm which, we must point out, is selling this info to prospective clients.
Cool photo courtesy of Dr. Jerome Kassirer, author of ‘On The Take’