Strategic Benchmarking Research & Analysis

Benchmarking Advisory Board Management At Large Pharmaceutical & Medical Device Organizations

Table of Contents

Executive Summary pgs. 3-8

Research Overview pg. 3

Participating Companies pg. 4

Key Recommendations pg. 5

Segments and Abbreviations pg. 6

Key Findings & Insights pgs. 7-15

Structure Of Advisory Boards pgs. 16-23

Selection of Advisory Board Participants pgs. 24-31

Operations Of Advisory Boards pgs. 32-41

Cost Of Advisory Boards pgs. 42-49

Challenges & Best Practices pgs. 50-54

Benchmark Profile pgs. 55-59

About Best Practices, LLC pg. 60-61

Field Research & Insight Development:

Thirty-five survey responses from Medical Affairs, Marketing and Patient Advocacy leaders at 29 biopharmaceutical & Medical Device companies. This reports captures insights across Large, Mid-Size and Small companies.

Additional deep-dive interviews with 7 selected executives who participated in the study.

• Identify Critical Benchmarks for advisory board Operations

• Provide Cost Benchmarks for Running advisory boards

Research Objectives & Methodology

Research Objectives:

Best Structure for Various Types of Advisory Boards

Selection of Advisory Board Participants

Benchmarking Operations Of Advisory Boards

Cost Of Conducting Advisory Boards

Top Challenges & Best Practices Of Conducting Advisory Boards

Business Objectives:

A well run advisory board requires optimum investment in resources and operations. To maximize the return on investment it is important for pharmaceutical professionals to ensure that the quality of meetings and dialogue with the board is excellent. This research is designed for pharmaceutical and biotech executives seeking ways to best utilize the knowledge of advisory boards.

Universe of Learning: Research Participants from Study

This study engaged 35 executives from 29 leading life sciences companies. Segmentation analysis was key to examining trends and effective practices. Thirteen participants at 9 companies make up the Large Company Segment (annual revenues greater than USD 10 Billion). Most responses came from US & Canada(63%) followed by Asia (20%).

Benchmark Class

Large Companies Segment

Segments and Abbreviations

Segments: • TBC: Total Benchmark Class

• Large Companies Segment (LC): LC is defined as companies with >$10B annual revenue.

Abbreviations: • TBC: Total Benchmark Class • LC: Large Companies

Page | 6

Key Findings & Insights: Structure Of Advisory Boards

Physician & Clinical Advisory Boards Most Common: Six out of 10 benchmarked companies maintain

physician and clinical advisory boards.

Segments: Large Companies utilize all the types of advisory boards studied in this research.

Sixty-two percent of large companies have physician advisory boards and 69% have clinical

advisory boards. Half of large companies also host marketing advisory boards.

Number of Participants Range From 9-11 Across Different Advisory Boards: Payer and clinical

advisory boards average around 9 participants while marketing advisory board participants’ average at 11

and physician advisory boards at 10.

Segment: Large companies have a similar number of advisory board participants as the total

benchmark class.

National Participants Preferred for Advisory Boards: A majority of companies prefer participants with a

national reach for clinical and payer advisory boards. Almost half of benchmarked companies prefer

national participants for marketing advisory board while 30% prefer regional participants. Similarly, for

physician advisory boards 48% of companies like national member, while more than a third prefer a mix of

both national and regional participants.

Large Companies Prefer National Participants for Physician Advisory Boards: Unlike some

benchmarked companies, 56% of large companies prefer national participants as a part of their

physician advisory boards while 33% like a mix of both national and regional.

The following key findings and insights emerged from this study.

Page | 7

Key Findings & Insights: Structure Of Advisory Boards

Top Challenges: The top three challenges that study participants face when conducting advisory board

meetings are selecting members/location(45%), managing advisory boards (36%), & physician availability

(36%).

The following key findings and insights emerged from this study.

Page | 8

23%

46%

54%

69%

62%

20%

29%

49%

60%

60%

Others

Payer Advisory Board

Marketing Advisory Board

Clinical Advisory Board

Physician Advisory Board

Total Benchmark Class Large Companies

Q. Please indicate the advisory board(s) that currently has a presence in your organization.

Compared to small and mid-cap pharma companies, large companies host a greater variety of advisory

boards. All companies are more inclined to have physician or clinical advisory boards, but even large

pharma companies do not always organize and conduct marketing or payer advisory boards as part of

their organizational strategy.

Large Companies Are More Inclined to Implement Advisory Boards

Across Various Perspectives

% Respondents

N=35

Others: Patient

Scientific Advisory Board

ad hoc only

Type of Advisory Board Used:

N=13

Page | 9

Q, Please indicate the preferred reach of advisory board members.

N=14-26

Companies continue to seek out national participants or create advisory boards with a national reach, as

opposed to a regional reach. That said, regional participants can be important for both physician and

payer advisory boards as companies will explore regional regulations and differences that can influence

how a drug is presented in a specific geography

National Participants and Reach Favored for Most Advisory Boards

% Respondents

Reach of Participants

88%

48% 57% 48%

4%

30%

43%

16%

8%

22% 36%

Clinical Advisory Board Marketing AdvisoryBoard

Payer Advisory Board Physician AdvisoryBoard

National Regional Both

Total Benchmark

Class

88%

42% 60% 56%

29%

40%

11%

12% 29% 33%

Clinical Advisory Board Marketing AdvisoryBoard

Payer Advisory Board Physician AdvisoryBoard

Large Companies

N=5-9

Page | 10

Q. Please indicate the preferred duration (in hours) for each advisory board meeting.

Physician and marketing advisory board meetings at large companies tend to be for lesser duration as

compared to TBC companies. Large companies typically conduct physician advisory boards take around

7 hours while marketing advisory board meeting take around 6 hours. In contrast, clinical advisory boards

take about 9 hours at large companies.

Clinical Advisory Boards At Large Companies Last Longer Than Marketing

or Physician Advisory Boards

N=8-17

* Limited data for payer advisory board, thus not shared.

8.4 7.9

8.4 8.8

6.3

7

Clinical Advisory Board Marketing Advisory Board Physician Advisory Board

Total Benchmark Class Large Companies

Page | 11

N=35

The vast majority of insights (approximately 63% ) in this benchmark study come from bio-pharma

professionals serving the United States market. Study insights were also contributed from bio-pharma

leaders working in Asian, European, Middle East & Australian markets.

Benchmark Research Captures Insights Mainly From U.S., Asia & Europe

% Respondents

US & Canada:

63% Europe: 11%

Asia: 20%

Middle East:

3%

Australia:

3%

Q. What region are you responding for?

Geography

Page | 12

Q. Please indicate your industry. [Choose all that apply.]

Participation came from across various industries in each segments. Overall 71% of companies

represented pharma industry while around 20% were from bio-tech and medical devices each.

Insights Harvested from Organizations Representing Different Industries

% Respondents

N=35 Others: Nutrition

Service provider

Industry

71%

23%

20%

9%

6%

77%

30%

67%

0%

0%

80%

20%

20%

10%

10%

58%

25%

25%

17%

8%

Pharmaceutical

Biotechnology

Medical Device

Diagnostic

Other

Total Benchmark Class Large Companies Mid-cap Companies Small Companies

Page | 13

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