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Optimizing Key Opinion Leader Relationships
         Best Practices in KOL Management




                                       BEST PRACTICES,   ®
                                                             LLC
Table of Contents


                                   Research Overview…………………..........Page 2
                                   Key Findings & Insights…………………..Page 6
                                   Organizational Structure………………….Page 12
                                   Segmentation, Alignment and Use…......Page 18
                                   Management Roles, Tools and
                                   Activities…………………………………….Page 22
                                   Innovative Practices, Opportunities and
                                   Challenges………………………………….Page 33
                                   Appendix
                                    o Additional Quotes……………………Page 40
                                    o About Best Practices………………..Page 43



Copyright © Best Practices®, LLC              1                     BEST PRACTICES,®
                                                                                       LLC
Research Overview




Copyright © Best Practices®, LLC     2            BEST PRACTICES,®
                                                                     LLC
Research Objective and Methodology
      This research was designed to capture the best practices in building, managing and
      maintaining KOL relationships. Data were collected using an online survey instrument,
      and in-depth interviews were conducted with selected participants to gather more
      detailed information pertinent to this study.


       This report:

           Collects best practices in the management of KOLs
           Describes optimal organizational structures for building and
           maintaining relationships with KOLs
           Captures information about tools and activities that help manage
           relationships
           Analyzes critical success factors and pitfalls in dealing with KOLs
           Provides insight into innovative practices, lessons learned and
           changing methods in working with KOLs




Copyright © Best Practices®, LLC              3                        BEST PRACTICES, ®
                                                                                           LLC
Benchmark Class
      Nearly 60 respondents representing 42 different companies participated in the survey.
      About half of these were from Marketing and/or Sales Departments.

           Abbott Laboratories                      Kendle International
           Alcon Labs                               Lundbeck Egypt
           Amgen                                    Medrad
           Anesiva                                  Merck
           Baxter                                   Myriad Pharmaceuticals
           Bayer Schering Pharma                    Nobel Biocare
           Becton Dickinson                         Novartis
           Biogen Idec                              Noven Therapeutics
           Bristol-Myers Squibb                     Ozone Pharmaceuticals
           Celgene Europe                           Pfizer
           Covidien                                 Promeco SA de CV
           Cubist Pharmaceuticals                   RBP Pharma SAS
           EMD Serono                               Sanofi-Aventis
           Esteve                                   Shire
           Ethicon Endo Surgery                     Solvay Pharmaceuticals
           Genentech                                Spectrum Pharmaceuticals
           Innovex                                  Steris Corporation
           Inspire Pharmaceuticals                  Teva Neuroscience
           Invitrogen                               Transoma Medical
           Janssen Cilag                            URL Pharma
           Johnson & Johnson                        Vistakon


Copyright © Best Practices®, LLC              4                           BEST PRACTICES,®
                                                                                             LLC
Sample Key Findings &
                                         Insights




Copyright © Best Practices®, LLC       5             BEST PRACTICES,®
                                                                        LLC
Organizational Structure
      Optimal structures balance the need for alignment with both scientific and commercial
      perspectives.


           Marketing and Medical Affairs frequently share responsibility for KOL
           management
            • Some form of cross-functional/team management is common
            • Regulatory pressures and the growing importance of scientific objectivity
                  give Medical Affairs an important edge
           Coordinating KOL activity is increasingly critical for both compliance
           and effectiveness
             • National KOLs almost always require a single point of contact
             • Avoid letting multiple people compete for a KOL’s attention
           Dedicated staff can counter management churn and inconsistency in
           relationships
           Structures should align with overall company characteristics and
           strategic functions
             • Internal alignment on the basics is vital to success
Copyright © Best Practices®, LLC                 6                     BEST PRACTICES, ®
                                                                                           LLC
Organizational Structure




Copyright © Best Practices®, LLC        7              BEST PRACTICES,®
                                                                          LLC
Dedication of KOL Management Function
      The vast majority of the benchmark class have dedicated oversight of KOL activities.
      Responsibility for this oversight varies (Medical Affairs, MSLs, others), and in many
      cases it occurs at the group, rather than the individual, level.


          Q: Is there a group or are there designated individuals in your company who are dedicated
                                       to the oversight of KOL activities?

                                                                            Number of FTEs
                       Dedicated Group




                                         No, 15%




          Yes, 85%



   (n=59)


Copyright © Best Practices®, LLC                        8                                    BEST PRACTICES,®
                                                                                                                LLC
Segmentation, Alignment and Use




Copyright © Best Practices®, LLC            9            BEST PRACTICES,®
                                                                            LLC
KOL Segmentation and Behavior Drivers
      Understanding the different types of KOLs, segmenting them and developing the
      appropriate relationships along a product’s lifecycle are keys to successful strategy.
      Identifying the factors that drive each KOL will optimize relationship development.


          Opinion Leader Segments                           Behavior Drivers

                                                          Research Interests
                              Technical                   Monetary Gain
                               Experts                    Fame
                                                          Professional/Career
               Clinical                  Peer             Development
               Talent                Influencers          Improving Health
                                                          Outcomes
                          Regional
                                                          Extending Influence
                       Opinion Leaders




Copyright © Best Practices®, LLC                   10                    BEST PRACTICES,  ®
                                                                                              LLC
Management Roles, Tools and
                                           Activities




Copyright © Best Practices®, LLC           11            BEST PRACTICES,®
                                                                            LLC
Highly Effective Tactics for KOL Management
      Profiling and Dedicated Staff were rated as most effective tactics for developing and
      maintaining relationships with KOLs.

    Q. Which of the following tactics are effective in developing and maintaining relationships with KOLs?




   (n=58-59)

Copyright © Best Practices®, LLC                      12                             BEST PRACTICES,    ®
                                                                                                             LLC
MSLs Involvement in KOL Management
      Most respondents (59%) reported that Medical Science Liaisons (MSLs) are either
      moderately or highly involved in KOL development at their companies. Among Top 30
      pharma respondents, that figure jumps to 80%.

        Q. How much are your company's Medical Science Liaisons (MSLs) involved in KOL
                                       development?



                                              Not At All
                                            Involved 19%




                                                                             Highly
                                                                          Involved 39%
                                     Minimally
                                   Involved 7%




                                    Somewhat
                                   Involved 15%




                                                            Moderately
                                                           Involved 20%
   (n=54)


Copyright © Best Practices®, LLC                              13                         BEST PRACTICES,®
                                                                                                            LLC
Innovative Practices,
                                   Opportunities and Challenges




Copyright © Best Practices®, LLC          14            BEST PRACTICES,®
                                                                           LLC
Critical Success Factors
      Critical Success Factors (CSFs) fell into three broad areas of focus: Relationship,
      Opportunity and Alignment. Factors relating to the consistency and continuity of
      relationship were mentioned most frequently.

              Q: What are the top three critical success factors in developing and maintaining effective KOL
                                                       relationships?
        Relationship
                                                                                                        Opportunity
                                   • Long-Term Approach
                                                                              • Active Pipeline
                                   • Upper Management
                                     Involvement                              • Evolving Science
                                   • Trust/Candor/Integrity                   • Funding
                                   • Long-Term Mindset                        • Active Clinical Study
                                                                                Investment
                                   • Feedback/Frequent Contact
                                                                              • Discovering Up-and-Coming
                                   • “Relationship Transfer”
                                                                                Leaders
                                   • SPOC
                                                                              • Quick Adoption of New
                                   • Consistency in communication,              Technology
                                     interaction, support, behavior
                                                                              • Research Opportunities
                                   • Fair Treatment
                                   • Dedicated FTEs
                                                              • Successful Matching of
                                                                Interests
                                                              • Mutual Benefit
                                                              • “Win-Win Thinking”
                                                              • Mutual Respect for
                                                                                                      Alignment
                                                                Scientific and Medical
                                                              • Value to KOL and Business
                                                              • Appropriate Recruiting

Copyright © Best Practices®, LLC                              15                                 BEST PRACTICES,  ®
                                                                                                                      LLC
About Best Practices, LLC
      Best Practices, LLC is a research and consulting firm that conducts work based on the
      simple yet profound principle that organizations can chart a course to superior
      economic performance by studying the best business practices, operating tactics and
      winning strategies of world-class companies.




                                      Best Practices, LLC
                                   6350 Quadrangle Drive, Suite 200
                                        Chapel Hill, NC 27517
                                       www3.best-in-class.com
                                            919-403-0251




Copyright © Best Practices®, LLC                  16                   BEST PRACTICES, ®
                                                                                           LLC

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Optimizing KOL Relationships Report Summary

  • 1. Optimizing Key Opinion Leader Relationships Best Practices in KOL Management BEST PRACTICES, ® LLC
  • 2. Table of Contents Research Overview…………………..........Page 2 Key Findings & Insights…………………..Page 6 Organizational Structure………………….Page 12 Segmentation, Alignment and Use…......Page 18 Management Roles, Tools and Activities…………………………………….Page 22 Innovative Practices, Opportunities and Challenges………………………………….Page 33 Appendix o Additional Quotes……………………Page 40 o About Best Practices………………..Page 43 Copyright © Best Practices®, LLC 1 BEST PRACTICES,® LLC
  • 3. Research Overview Copyright © Best Practices®, LLC 2 BEST PRACTICES,® LLC
  • 4. Research Objective and Methodology This research was designed to capture the best practices in building, managing and maintaining KOL relationships. Data were collected using an online survey instrument, and in-depth interviews were conducted with selected participants to gather more detailed information pertinent to this study. This report: Collects best practices in the management of KOLs Describes optimal organizational structures for building and maintaining relationships with KOLs Captures information about tools and activities that help manage relationships Analyzes critical success factors and pitfalls in dealing with KOLs Provides insight into innovative practices, lessons learned and changing methods in working with KOLs Copyright © Best Practices®, LLC 3 BEST PRACTICES, ® LLC
  • 5. Benchmark Class Nearly 60 respondents representing 42 different companies participated in the survey. About half of these were from Marketing and/or Sales Departments. Abbott Laboratories Kendle International Alcon Labs Lundbeck Egypt Amgen Medrad Anesiva Merck Baxter Myriad Pharmaceuticals Bayer Schering Pharma Nobel Biocare Becton Dickinson Novartis Biogen Idec Noven Therapeutics Bristol-Myers Squibb Ozone Pharmaceuticals Celgene Europe Pfizer Covidien Promeco SA de CV Cubist Pharmaceuticals RBP Pharma SAS EMD Serono Sanofi-Aventis Esteve Shire Ethicon Endo Surgery Solvay Pharmaceuticals Genentech Spectrum Pharmaceuticals Innovex Steris Corporation Inspire Pharmaceuticals Teva Neuroscience Invitrogen Transoma Medical Janssen Cilag URL Pharma Johnson & Johnson Vistakon Copyright © Best Practices®, LLC 4 BEST PRACTICES,® LLC
  • 6. Sample Key Findings & Insights Copyright © Best Practices®, LLC 5 BEST PRACTICES,® LLC
  • 7. Organizational Structure Optimal structures balance the need for alignment with both scientific and commercial perspectives. Marketing and Medical Affairs frequently share responsibility for KOL management • Some form of cross-functional/team management is common • Regulatory pressures and the growing importance of scientific objectivity give Medical Affairs an important edge Coordinating KOL activity is increasingly critical for both compliance and effectiveness • National KOLs almost always require a single point of contact • Avoid letting multiple people compete for a KOL’s attention Dedicated staff can counter management churn and inconsistency in relationships Structures should align with overall company characteristics and strategic functions • Internal alignment on the basics is vital to success Copyright © Best Practices®, LLC 6 BEST PRACTICES, ® LLC
  • 8. Organizational Structure Copyright © Best Practices®, LLC 7 BEST PRACTICES,® LLC
  • 9. Dedication of KOL Management Function The vast majority of the benchmark class have dedicated oversight of KOL activities. Responsibility for this oversight varies (Medical Affairs, MSLs, others), and in many cases it occurs at the group, rather than the individual, level. Q: Is there a group or are there designated individuals in your company who are dedicated to the oversight of KOL activities? Number of FTEs Dedicated Group No, 15% Yes, 85% (n=59) Copyright © Best Practices®, LLC 8 BEST PRACTICES,® LLC
  • 10. Segmentation, Alignment and Use Copyright © Best Practices®, LLC 9 BEST PRACTICES,® LLC
  • 11. KOL Segmentation and Behavior Drivers Understanding the different types of KOLs, segmenting them and developing the appropriate relationships along a product’s lifecycle are keys to successful strategy. Identifying the factors that drive each KOL will optimize relationship development. Opinion Leader Segments Behavior Drivers Research Interests Technical Monetary Gain Experts Fame Professional/Career Clinical Peer Development Talent Influencers Improving Health Outcomes Regional Extending Influence Opinion Leaders Copyright © Best Practices®, LLC 10 BEST PRACTICES, ® LLC
  • 12. Management Roles, Tools and Activities Copyright © Best Practices®, LLC 11 BEST PRACTICES,® LLC
  • 13. Highly Effective Tactics for KOL Management Profiling and Dedicated Staff were rated as most effective tactics for developing and maintaining relationships with KOLs. Q. Which of the following tactics are effective in developing and maintaining relationships with KOLs? (n=58-59) Copyright © Best Practices®, LLC 12 BEST PRACTICES, ® LLC
  • 14. MSLs Involvement in KOL Management Most respondents (59%) reported that Medical Science Liaisons (MSLs) are either moderately or highly involved in KOL development at their companies. Among Top 30 pharma respondents, that figure jumps to 80%. Q. How much are your company's Medical Science Liaisons (MSLs) involved in KOL development? Not At All Involved 19% Highly Involved 39% Minimally Involved 7% Somewhat Involved 15% Moderately Involved 20% (n=54) Copyright © Best Practices®, LLC 13 BEST PRACTICES,® LLC
  • 15. Innovative Practices, Opportunities and Challenges Copyright © Best Practices®, LLC 14 BEST PRACTICES,® LLC
  • 16. Critical Success Factors Critical Success Factors (CSFs) fell into three broad areas of focus: Relationship, Opportunity and Alignment. Factors relating to the consistency and continuity of relationship were mentioned most frequently. Q: What are the top three critical success factors in developing and maintaining effective KOL relationships? Relationship Opportunity • Long-Term Approach • Active Pipeline • Upper Management Involvement • Evolving Science • Trust/Candor/Integrity • Funding • Long-Term Mindset • Active Clinical Study Investment • Feedback/Frequent Contact • Discovering Up-and-Coming • “Relationship Transfer” Leaders • SPOC • Quick Adoption of New • Consistency in communication, Technology interaction, support, behavior • Research Opportunities • Fair Treatment • Dedicated FTEs • Successful Matching of Interests • Mutual Benefit • “Win-Win Thinking” • Mutual Respect for Alignment Scientific and Medical • Value to KOL and Business • Appropriate Recruiting Copyright © Best Practices®, LLC 15 BEST PRACTICES, ® LLC
  • 17. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 www3.best-in-class.com 919-403-0251 Copyright © Best Practices®, LLC 16 BEST PRACTICES, ® LLC