This is the final part in our series written by legal consultant Beth R. Jacobson, PLLC, entitled The Biggest Mistakes You Can Make When Negotiating a Consulting Arrangement with A Pharma/Biotech Company. Today’s section will cover Pitfall Number Four – Having No Idea What You Are Committed To Doing and provide a summary of the series.
In the agreement that the doctor was about to sign, it simply said that he’d do what needs to get done for the drug to get approved by the FDA.
Mistake: If you can’t tell someone what you think you have to do to meet your commitments – don’t sign it.
Easy solution: Over lunch again, you ask what is expected for your consulting services. They tell you once again that the team does whatever is necessary to get the job done – and you are planning on being part of the winning team – right? Your reply should be along the lines that yes, you plan on being on the winning team, but as the company knows, you have a full time job that you are also committed to. What exactly is expected in terms of your work schedule and work product, for example, how many hours per week are you expected to work; what exactly will your work product consist of; what is expected of you in terms of your availability in person, by phone or email? So there are no misunderstandings, include a provision in the agreement the states how many hours you are expected to work. Also remember if they expect you to appear before the FDA, this should be for additional compensation as it will most likely require travel and a full day out of the office for you.
Summary
The above is meant as a starting off point for any doctor who is thinking of getting into a consulting arrangement with a pharma/biotech company. In sum, make sure you know exactly who you are dealing with (is the company financially solid and is the management of the company people you want to associate with); make sure you are paid what you are worth (this is not pro bono work); always get indemnified for your work; and make sure you know what is required from a time commitment standpoint as well as work product expectations.
Consulting can be rewarding both professionally and monetarily – just make sure you know what you are getting into and remember that people don’t necessarily get what they deserve, they get what they negotiate.
To access the other parts of this series, please select the links below.
Part 1: Introduction
Part 2 : Pitfall Number One: What Do You Know About This Company?
Part 3 : Pitfall Number Two – Agreeing to Below Market Compensation
Part 4 : Pitfall Number Three: Not Having Indemnification In Your Agreement
Prepared by BR Jacobson, PLLC
If you have any questions regarding the topics discussed above or if you would like further information about BR Jacobson, PLLC, please visit their website at http://www.brjacobson.com/ or send an email to beth@brjacbson.com.
