Questions About Lilly Faculty

1. Why does Lilly need to contract with healthcare professionals for services?
   Few products in any industry are as complex as an innovative medicine and every new drug is different. Every medicine, for instance, has different approved uses and side effects.
   
   Many healthcare professionals prefer to receive information from Lilly about our products through their peers and colleagues. That's why we contract with faculty members—often experts in their field—to conduct Lilly-sponsored programs for healthcare professionals on the complex nature of diseases and their treatment options.
   
   Some faculty members also work to educate patients so they know how to properly use Lilly medicines. Others faculty members advise us on the development of meaningful tools, programs, and needed clinical information—all in the pursuit of better patient care.
2. Why does Lilly pay these individuals for their services?
   Since these healthcare professionals must take time away from their practices to conduct services for Lilly, Lilly Faculty are compensated for their time as well as their expertise. Partnering with these experts is essential to our ability to effectively educate healthcare professionals and patients on the appropriate use of our medicines and other important medical and health-related topics.
   
   Moreover, the experts contracted by Lilly often have invested years in developing their knowledge and experience and bring a critical clinical perspective highly valued by other healthcare professionals and patients.
3. How does Lilly determine the amount it pays its faculty?
   Our compensation rates vary based on the credentials of the faculty member, many of whom have invested years in developing their knowledge and experience. The rate of compensation is determined based on this expertise as well as fair market value—what the healthcare professional would earn from others for similar services.
   
   It's important to note that since 2004, Lilly has limited the amount a Lilly Faculty member can earn in a given year. Many of our peer companies have adopted similar policies as recommended by the PhRMA code.
4. How does Lilly select the healthcare professionals it hires?
   Healthcare professionals are chosen for their expertise in specific diseases and patient care. In the case of faculty members who lead informative discussions with other healthcare professionals, they must be strong educators and communicators.
   
   Advisors are typically well-known researchers and clinicians who are respected by other healthcare professionals, often cited in professional literature, and active in professional medical societies.
5. Is it a conflict of interest to pay healthcare professionals who could influence the prescribing of your drugs?
   We do not believe that there is an inherent conflict of interest when healthcare professionals provide bona fide services to Lilly under transparent conditions. However, Lilly and the contracted healthcare professionals take a number of measures to publicly disclose their relationships to mitigate against the perception of conflicts of interest—including the publication of this registry. At the beginning of a Lilly educational program, the faculty speaker is required to identify himself or herself as a compensated representative of Lilly. The speaker must state that the program is sponsored by Lilly and its alliance partner, if applicable, and, in the case of a healthcare professional education program, is not accredited for continuing medical education.
   
   Many Lilly Faculty members are associated with medical and academic institutions throughout the United States. These institutions may also have their own conflict of interest policies to which we expect Lilly Faculty to also adhere.
   
   Faculty members also agree, as a part of their contractual agreement with Lilly, that if they have a role in formulary decisions with a public or private institution or payer, they will disclose that they have a contract with Lilly, the types of services they perform, and the amount of compensation they receive. Consistent with the pharmaceutical industry's PhRMA code on interactions with healthcare professionals, this requirement extends for two years beyond the term of their agreement with Lilly.
   
   Additionally, Lilly places no restrictions on a faculty member's ability to inform their patients, employer, any licensing authority, or anyone else, the amount they are paid under the Lilly agreement.
6. Do the fees Lilly pays these healthcare professionals contribute to the cost of prescription drugs?
   The amount Lilly compensates its contracted faculty is part of our effort to inform healthcare professionals about our products in an effort to ensure our medications are used correctly and appropriately. It's also the preferred way that some healthcare professionals want to be kept informed about various diseases and their treatment options.
7. Are payments to clinical investigators included in the registry?
   The 2010 Lilly Faculty Registry does not include research-related payments. For more information on future payment disclosures, see question 13.
8. Are all Faculty on this Registry under a contract?
   Lilly requires all faculty to have a signed contract on file before a service is performed.
9. Can Lilly Faculty make a request to not have their payment information included on the registry?
   Lilly Faculty who receive payments from Lilly for compensation or reimbursed travel expenses must appear on the Lilly Faculty Registry. Lilly Faculty may elect to cancel their contract at any time but any payments or reimbursed expenses made prior to a cancelled contract must be disclosed on the Lilly Faculty Registry.
10. Are only Lilly products discussed in these healthcare professional educational programs?
    Lilly offers different types of education programs—some which include product information and others that do not mention any products at all. In all instances where a product is mentioned, the educator must ensure all information presented is fairly balanced and complies with the medication’s label as approved by the U.S. Food and Drug Administration.
11. What is meant by certain travel related expenses?
    Certain travel related expenses mean payments made to Lilly Faculty as reimbursements for reasonable travel and meal expenses—within established guidelines—incurred by Lilly Faculty while conducting services on Lilly’s behalf. Lilly does not reimburse any expenses for entertainment or non-business purposes and does not reimburse for any travelers, such as a spouse or friend, who may accompany the faculty member. There may also be associated travel expenses that are paid by Lilly directly to the travel provider—such as an airline. These expenses do not result in a reimbursement to Lilly Faculty, and, therefore are not reflected on the 2010 Lilly Faculty Registry.
12. Why do some Lilly Faculty not have any payments for services listed yet have reimbursed travel expenses?
    There are three situations that could cause a faculty member to show only payments for travel expenses.
    
    First, due to the time lapse between when an event took place and the subsequent reimbursement of expenses, it is possible that the payment for services was paid and reported on the prior year’s registry.
    
    Second, if the payment for the compensation was made to the third-party payee with whom the faculty member is affiliated (e.g., a healthcare organization), the compensation amount would be included in the registry under that organization’s name in the “Entity Paid” column. At the same time, if the faculty member is reimbursed directly for expenses incurred while traveling, he or she would also be listed on the registry as an entity paid.
    
    Third, if a faculty member elects not to receive compensation for his or her services but accepts reimbursement from Lilly for travel expenses incurred, the registry report would reflect a payment for reimbursement of expenses even though there is no compensation to report.
13. Will the Lilly Faculty Registry evolve over time?
    In 2009, the registry included payments for compensation of Lilly Faculty for performing patient education, healthcare professional education, commercial advising and consulting services, and international educational programs.
    
    In 2010, the registry also includes payments for reimbursement of certain travel related expenses, such as lodging and meals incurred while performing services on Lilly’s behalf.
    
    In 2011, the registry will include payments and other types of value provided for all U.S. physicians—beyond those serving as Lilly Faculty. Additionally, in 2011, the registry will include payments for research-related services, including clinical consulting. Further, it will include other types of value provided to U.S. physicians, including, but not limited to, additional food and beverage costs and the value of certain educational items.
14. How often will the Lilly Faculty Registry be updated?
    The registry is updated quarterly.