CONFIDENCE RETURNS THE WAR FOR TALENT. Life Sciences Salary Guide & Market Overview hays.co.uk

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1 CONFIDENCE RETURNS THE WAR FOR TALENT Life Sciences Salary Guide & Market Overview 2014 hays.co.uk

2 Contents Introduction 1 Executive summary 2 Salaries & benefits: An employer perspective 4 Salaries & benefits: An employee perspective 6 Summary of findings 8 Salary guide 9 Biometrics 10 Clinical Research 12 Commercial 14 Drug Safety 16 Health Economics & Market Access 18 Medical Information 20 Quality Assurance 22 Regulatory Affairs 24 Market insight 26 Steve Bates, The BioIndustry Association 27 Sarah Haywood, London & Partners 28 Kate Bingham, SV Life Sciences 29 Paul Branthwaite, TranScrip Partners 30 Melissa Easy, DrugDev 31 Louise Handy, Research Quality Association 32 Yvonne Smyth, Hays 33 Hays Global Skills Index 34 About us 36 Our global reach 37 2 Hays Life Sciences Salary Guide & Market Overview 2014

3 INTRODUCTION The pharmaceutical industry and government need to take the long view, and do something to resolve the professional skills shortage now facing us in the UK. The war for talent is real, and as an industry we need to start thinking about where, and how, new skills will be channelled into the life sciences industry now, and in the future. As demand for innovative, more cost-effective and better value healthcare solutions increases, we will need more scientists, engineers and technicians, and need to think ahead about where this talent will come from. Mark Weller Director Hays Life Sciences Welcome to the 2014 Hays Life Sciences Salary Guide & Market Overview. In order to identify the trends driving life sciences hiring in the UK at present, we have undertaken a comprehensive analysis of salary and benefits data for life sciences professionals across clinical, drug safety, quality assurance, regulatory, commercial, health economics, medical information and biometrics. In addition, industry leaders and our leading recruitment experts offer commentary to help you make informed hiring decisions. Life sciences is a specialised business that, except for the high profile roles of doctor, pharmacist and vet, has failed to successfully attract the necessary talent resources. Long-term vacancies are already daily currency in some specialities, SAS programming is one such discipline, and we believe that the need to resolve the talent shortages is now urgent. A solution needs to be found sooner rather than later so this is not something that can wait until university. It must start even in primary schools. Which is why we associate ourselves with organisations such as Coderdojo that involves school children in coding. At Hays we believe passionately in developing thought leadership and in encouraging this debate. It is imperative that we change the culture in life sciences recruitment and shift the needle from cost to partnerships and collaboration. Life sciences recruitment is now focused on creating sustainable relationships that will carry pharma and its supporting organisations safely into calmer waters. We hope you find this report both interesting and informative and I value your feedback. Please your comments to me at mark.weller@hays.com Hays Life Sciences Salary Guide & Market Overview

4 EXECUTIVE SUMMARY A return to economic growth and the finalisation of several pieces of important regulation and industry business agreements have stimulated life sciences recruitment. However, the demands of a cost-efficient NHS are set to moderate pay rates, and remaining infrastructural uncertainties may limit the growth opportunities ahead. The life sciences sector is looking forward to a buoyant and both pharma and contract organisations should be looking closely at the specialist skills they have, or might need as the year progresses. Relative to other public sectors, the NHS the major purchaser and payor of life sciences goods and services in the UK has emerged from the recession in reasonable shape. However, there is no escaping from the fact that the NHS faces massive future funding challenges. Thanks to decades of investment in modern medicines and the life sciences, people are now living longer, but for many people, this extended longevity is not always healthier. Long-term conditions that will need extended treatment are set to remain a clear and growing challenge for the NHS purse. Stability and incentives boost recruitment Medicines, as the most common and most cost-effective care pathway offered to patients, are naturally set to play a key and growing role in the way the NHS cares for its patients. With this in mind, it is recognised that the pharma industry will require stability and incentivisation, particularly as it tackles its own business challenge of developing and marketing a more complex drug pipeline. The new drugs pricing agreement between the NHS and the pharma industry for , the Pharmaceutical Price Regulation Scheme (PPRS), and the new regulatory framework for pharma all go some way to meeting these needs, and this is expected to present growth opportunities. Long term growth potential yet to be realised However, it must also be remembered that the terms of the PPRS agreement offer far more than just a passing nod to the need to achieve significant cost efficiencies in medicine purchasing. The agreement also comes into effect without the industry having complete understanding of how new medicines may be authorised by the medicines watchdog, NICE (National Institute for Health and Clinical Excellence). New powers to assess a medicine for the value it offers patients and the NHS are not expected to come into effect until at least the final quarter of 2014 nine months later than previously expected. Only then, perhaps, will the life sciences industry, its business partners, and the people they employ really be able to get a better grasp of likely sector growth and the specialist skills requirements ahead. 2 Hays Life Sciences Salary Guide & Market Overview 2014

5 Biometrics Outsourcing activity in biometrics is a key trend that seems set to continue as big pharma companies increasingly look to their partners for support. However, the competitive nature of this market will mean continuing pressure on both full service clinical research organisations (CROs) and niche suppliers to find the talent required to service their contracts. Increasingly they are responding with more flexible working conditions and, in some cases, higher salaries. There is also a growing need to turn to the freelance marketplace. Pay rate rises may escalate further as the talent shortage in this area looks set to continue. Clinical Research Clinical research, naturally, remains a key skillset within life sciences, but companies are opting for outsourced solutions in search of cost-efficient clinical research. This has naturally stimulated the recruitment landscape within this market, and within pharma, for personnel with project management expertise. Outsourcing of clinical trial activity is expected to continue, with many of the smaller biotechnology and pharma companies following the lead of their larger peers in outsourcing large elements. Commercial Confidence in the long term future of the life sciences industry has been growing since late Former CRO professionals are proving particularly attractive as organisations are showing an increased interest in recruiting individuals with experience in outsourcing, bids and proposals. Those with the skills to negotiate favourable contracts are highly sought after. Looking forward, companies now seem to be in a position to commit to their professional recruitment, and the expectation is that more permanent positions will become available. Drug Safety Legislative change in pharmacovigilance (PV), coming into effect across the EU from July 2012 has dramatically changed the game for PV compliance, and with it has altered the pattern of demand for professionals with expertise in this area. General case management is now being outsourced and while specialist area activity is being brought in-house vacancies are typically filled by contract consultants. However, changes in the operating culture within pharma are beginning to rejuvenate the market for permanent hires. Health Economics & Market Access As the professional speciality charged with placing drugs in the NHS, where they can be prescribed, HEOR professionals are in growing demand for their ability to understand and harness the opportunities presented by the changing NHS structure. Current market conditions are showing a steady flow of permanent hires due to employee replacement and also additional headcount. There are also signs that pay rates are becoming more flexible as candidates enter the market with a desirable experience or skillset. It is possible that this could provide a short term boost to the contract market, as permanent professionals are sought Medical Information The start of 2014 brought with it greater recruitment activity in medical information, and at more senior levels. This may be attributed to an increasing prevalence of organisations favouring individuals with a proven track record. Another major change is the updated ABPI Code of Practice, which reduces pharma companies reliance on medics for delivering certain tasks, and other, lower cost healthcare professionals are expected to be in demand. A move toward contract recruitment is also predicted as non-medical professionals step in to fill the medics shoes. As stability and certainty in life sciences increases, the market should expect to see an increase in the number of permanent positions. Quality Assurance As with other life sciences specialities, legislative change designed to boost patient safety has increased the need for specialist quality assurance (QA) professionals. Investment in permanent headcount looks set to continue, although emerging opportunities for contract QA staff are evident. In some specialities, particularly PV and professionals with Qualified Person status, demand is expected to outstrip supply for some time. This is being reflected in pay rates as a whole. The QA market is expected to remain lively over the next 12 months, as employers and candidates feel confident and positive about the new employment opportunities. Regulatory Affairs In an about-turn from the job-cutting days of the late noughties, and as companies strive to deliver their regulatory obligations, new permanent vacancies are appearing. Commercial opportunities arising in post-approval regulatory affairs, as well as positions resulting from internal restructure, are stimulating demand for permanent roles. Recruitment in both the permanent and contract markets is expected to become extremely buoyant during , and the prediction is that permanent packages will improve, and will start to include long-term incentives. Hays Life Sciences Salary Guide & Market Overview

6 SALARIES & BENEFITS AN EMPLOYER PERSPECTIVE Increasing workload, competition and recruitment and retention concerns are leading employers in the life sciences industry to reconsider their salary and benefits offer. Over the next 12 months, life sciences employers are expecting increased competition for the best candidates when recruiting. Competition from other employers is cited as a concern for almost half (45%) of those surveyed in our report, followed by retention (28%). Despite the prospect of increasing workload (cited by 60% of organisations), over half of respondents (52%) also anticipate budget constraints, while for 45% of respondents headcount is expected to become a concern. For the majority of those planning to recruit (55%) they expect there to be a shortage of experienced applicants, as well as unrealistic salary requirements (expected by 45% of respondents). Benefits impact on recruitment In life sciences today, companies offer a wide portfolio of benefits, most commonly (in 67% of respondent companies) pension contributions above the statutory minimum and flexible working (such as flexi-time or home working). Over half (59%) offer over 25 days annual leave. Salaries on the up Almost two-thirds of our employers (65%) report that they have increased salaries over the past 12 months. In almost two in five organisations (38%) the increase has been in the region of 2% and in a quarter of organisations (26%) by 3%. In almost two-thirds (64%) of these organisations the increase has been around 2-3%. 67% of employers expect to increase their salary offer during the next 12 months, and again most of the increases are expected to be between 2-3%. Retaining existing resources There is a high degree of confidence in the existing workforce. 70% of respondents feel they have the skills and talent needed to achieve their current business objectives and 82% say they have at least maintained their headcount, if not increased it over the past 12 months. Future plans Our employers also demonstrate a slight preference towards hiring on a permanent basis with 46% of employers saying they expect to recruit more permanent staff in the next 12 months, compared to the 41% who say they expect to recruit more contract staff. These three benefits, along with individual or company performance-related bonuses, are also felt to have the greatest impact on recruitment. 4 Hays Life Sciences Salary Guide & Market Overview 2014

7 Which of the following benefits have the most impact on recruitment? And which do you offer? During the last 12 months have the salaries of your workforce increased or decreased? Performance-related bonus Flexible working Over 25 days annual leave Pension contribution Company car or car allowance Health or private medical cover Share incentives Paid overtime Financial support for training Dental insurance Life insurance Discount on products and services Maternity/paternity schemes Childcare vouchers Interest free season ticket loan Membership of professional bodies Rewards for long service Cycle to work schemes 0% 0% Biggest impact Offered to employees 6% 6% 4% 4% 4% 2% 2% 12% 18% 10% 16% 10% 16% 29% 29% 31% 35% 35% 37% 51% 49% 47% 43% 41% 37% 47% 63% 59% 61% 57% 53% 57% 67% 67% Increased Stayed the same Decreased Over the next 12 months do you expect the salaries of your workforce to increase or decrease? Increase Stay the same Decrease Do you expect to encounter any of the following challenges when recruiting staff in the next 12 months? Shortage of experienced applicants 55% Competition from other employers 45% Unrealistic salary requirements 45% Shortage of qualified applicants 36% All pie chart figures above are shown as percentages Hays Life Sciences Salary Guide & Market Overview

8 SALARIES & BENEFITS AN EMPLOYEE PERSPECTIVE In a highly mobile marketplace, the winners will be those companies that focus on career development. According to our survey, career mobility is now a feature of the life sciences landscape: over three in four (76%) of our respondents say their intention is to move jobs within the next one to two years. Mobility is possibly being driven by the perception of a return to market stability. It is also possible that the potential for salary increases is also playing a role. Over half (52%) said their salary had increased over the past 12 months, and 64% said they were optimistic of receiving a rise during the next 12 months. Of the 43% of respondents that received performance-related bonus almost two in five (38%) said it was higher than previous bonuses, and for 30% of recipients, it was their first. Most respondents also agree that they expect their workload to continue to increase, but only 14% say they have received additional pay for this work over a third (36%) admit that the extra work has been done for the same pay. This may well also be fuelling a search for better remuneration. Motivation to move But, aside from salary, what is today s leading life science professional looking for in a new employer? Our respondents tell us that opportunity to develop their careers is a top priority (35%), followed by achieving a good work-life balance (16%) and involvement in a challenging role or project (13%). Three in five of our survey respondents are currently employed in a permanent position. This preference for stable employment is also reflected in the contract workforce the majority (58%) state a wish to sign up to a contract of at least six months duration. Getting the benefits right Our research reveals that the benefits on offer generally reflect those valued by employees. Currently the three most commonly received benefits are; flexible working (56%), pension contribution above the statutory minimum (45%) and health insurance or private medical cover (45%). These are generally mirrored by those that are seen as important, but with an individual or company performance-related bonus beating health insurance to third place. Importantly, all these benefits also appear on candidates wish lists when looking for their next employment opportunity. Among the least valued, each receiving just 2% support, were rewards for long service, maternity and paternity schemes above statutory minimum and membership of institute or professional bodies. The greatest mismatch between availability and perceived value is in the areas of life insurance and discounts on products and services, both of which are received by 29% of respondents but valued by only 3%. Career progression A portfolio of training solutions is widely available in the life sciences industry, with high levels of availability of in-house, online, on-the-job and external training. 88% of respondents agree that they have the right skills to progress in their chosen careers. Three in five respondents tell us that their current employer offers them adequate scope for career progression within their organisation. 6 Hays Life Sciences Salary Guide & Market Overview 2014

9 Which of the following benefits are most important in your current job? During the last 12 months, has your salary rate increased or decreased? Important in current role Currently received 9 Increased Stayed the same Decreased Flexible working Pension contribution Performance-related bonus Health or private medical cover Over 25 days annual leave Paid overtime Company car or car allowance Financial support for training Childcare vouchers Dental insurance Discount on products and services Interest free season ticket loan Life insurance Share incentives Cycle to work schemes Rewards for long service Maternity/paternity schemes Membership of professional bodies 4% 3% 3% 12% 14% 11% 8% 3% 8% 3% 3% 3% 2% 2% 2% 27% 26% 32% 23% 34% 21% 18% 18% 18% 18% 15% 15% 20% 24% 29% 29% 44% 56% 45% 44% 45% 39 Over the next 12 months, do you expect your salary rate to increase or decrease? Increase Stay the same Decrease Aside from salary, which of the following is most important when considering a new role? Career development opportunity 35% Work-life balance 16% Challenging role/projects 13% Location 12% Flexible working options 8% Job security 6% Good pension 5% Good bonus 3% Employer brand 2% Flexible benefits 0% All pie chart figures above are shown as percentages Hays Life Sciences Salary Guide & Market Overview

10 SUMMARY OF FINDINGS BENEFITS SURVEY EMPLOYERS EMPLOYEES 7% cut their workers pay last year 76% plan to move jobs within the next 2 years 67% expect to raise salaries next year 52% say their pay rose in the past year 55% are expecting a shortage of experienced applicants 88% feel they have the skills to progress 12 In the next 12 months 46% expect to recruit more permanent staff while plan to hire more temporary workers 41% 35% state career development as the most important factor when considering a new role 81% offer flexible working opportunities to their employees 56% are offered some element of flexible working 8 Hays Life Sciences Salary Guide & Market Overview 2014

11 SALARY GUIDE Hays Life Sciences Salary Guide & Market Overview

12 BIOMETRICS CONTINUED DEMAND 2014 has continued to be a very busy year for professionals with a biometrics speciality. Demand for the three core biometrics skills statisticians, analytics software users (SAS Programmers) and data managers has been high for much of the past decade. Over the latter half of 2013, demand became even greater due to the very large increase in the volume of clinical trial work being outsourced to clinical research organisations (CROs). In particular, technically-adept candidates with prior experience of leading studies or projects in life sciences are highly sought after, particularly as the domestic skillset shortage continues. To fill the supply gap in the interim, companies are looking at sourcing talent through non-traditional methods. There has been a large increase in the number of candidates hired from other countries in the EU, and in the use of remote workers. Employment status Traditionally, biometrics offers very strong opportunities for both contract and permanent employment and the life science market in Europe remains extremely competitive. In recent years, the amount of work being outsourced has increased significantly, most notably via large scale strategic partnerships, which many CROs have forged with large global pharma companies. As a result, CROs have been under increased pressure to lower prices in exchange for volume business. This shift in the industry has resulted in numerous pharmaceutical companies maintaining a flat headcount with the majority of expansion happening with CROs and biometrics specific consultancies. The move towards a more outsourced model considerably strengthened the permanent recruitment sector particularly over the latter half of 2013 into 2014 and, due to increased demand for permanent staff, there is upward pressure on permanent salaries. Additionally this shift has also impacted the contract employment market as the reduced price of outsourcing has made it increasingly difficult for outsourcing providers to justify the costs associated with hiring contractors. Future predictions 2014 has been an incredibly busy year in the biometrics recruitment market. Competition among CROs in the market will remain exceptionally high during the remainder of 2014, but the shortage of talent is, if anything, expected to worsen. There has been a resurgence of the contract worker market in the CRO sector, as these organisations struggle to cope with the timelines and commitments made to pharma industry clients. This looks set to continue. Looking further ahead, the current demand from the life sciences industry for a skilled biometrics workforce, combined with a current shortage of graduate schemes or entry-level opportunities, will need to be addressed to ensure the next generation of professionals enter what is already a market with a significant skills shortage. Failure to achieve this may result in contract rates and salaries spiralling upwards, or UK based biometrics departments may have to look for talent outside the EU. 10 Hays Life Sciences Salary Guide & Market Overview 2014

13 Biometrics SAS Programming Range Typical Hourly SAS Programmer Level 1/Associate Biostatistics Programmer/Junior Programmer SAS Programmer Level 2/Senior Associate Biostatistics Programmer/Associate Programmer 25,000-30,000 27,500-30,000-35,000 32, Senior SAS Programmer 35,000-45,000 37, Project/Principal SAS Programmer 42,000-60,000 50, SAS Programming Manager 55,000-65,000 60, AD of Programming 60,000-75,000 67,500 - Director of Programming 75,000-80,000 77,500 - Senior Director of Programming 80, , ,000 - Vice President/Global Head 120, ,000 - Biometrics Statistics Range Typical Hourly Statistician/Biostatistician/Associate Statistician 25,000-30,000 27,500 - Statistician Level 2/Biostatistician 2/ Senior Associate Biostatistician 30,000-40,000 35,000 - Senior Statistician 40,000-50,000 45, Project/Principal Statistician 50,000-65,000 60, AD of Statistics 65,000-80,000 72, Director of Statistics 80, ,000 90,000 - Senior Director of Statistics 100, , ,500 - Vice President/Global Head 125, ,000 - Hays Life Sciences Salary Guide & Market Overview

14 CLINICAL RESEARCH DRIVING EFFICIENCIES The changing nature of clinical research is reflected in the opportunities now available for clinical specialists. In search of cost efficiencies, pharma companies are opting for outsourced clinical research solutions, and this has lead to increased recruitment activity within third party clinical research organisations. However, as CRO use has increased, demand for clinical research professionals within pharma itself has declined. The demand that remains is for contract personnel with management expertise, experience in clinical trial work, and the flexibility to oversee the increasingly outsourced activity. Employment status As they scale up to manage the clinical activity being outsourced, CROs are showing strong demand for permanent specialist professionals. Pay However, third party CROs can find it a challenge to incentivise their recruitment needs through salary or long-term employment prospects. Today s clinical research contracts are won or lost on the value for money they offer the pharma vendor; CROs also still have to manage the unpredictable nature of clinical research, as well as the typically high staff attrition rate caused by preferential contractor salaries and the terms and conditions of employment available within pharma. Currently, within pharma, salaries range from around 30-70k, compared to clinical research organisations which typically offer between 30-60k. Contract workers, meanwhile, might expect to see day rates of between a day, depending on their level of seniority. As a result, over the past 12 months, salaries have, at best, remained stable, and at worst have been subject to downward pressure as larger companies attempt to drive down the daily rates for contractors and are looking at those with less experience and therefore lower rates. Trend analysis Outsourcing of clinical trial activity is expected to continue, which will drive demand for permanent staff, with many of the smaller biotechs and pharma companies following the lead of their larger peers in outsourcing large elements. Ongoing restructuring programmes within industry will further increase the need for the flexibility that contract staff bring. 12 Hays Life Sciences Salary Guide & Market Overview 2014

15 Clinical Research CRO Range Typical Daily Clinical Research Associate I 30,000-33,000 31, Clinical Research Associate II 33,000-36,000 35, Senior Clinical Research Associate 36,000-42,000 38, In-house Clinical Research Associate I 30,000-33,000 30, In-house Clinical Research Associate II 33,000-36,000 34, In-house Senior Clinical Research Associate 36,000-40,000 38, Project Manager 30,000-60,000 55, Clinical Research Nurse 28,000-35,000 30, Senior Clinical Research Nurse 35,000-40,000 36, Clinical Research Pharma Range Typical Daily Clinical Trial Associate 28,000-32,000 30, Senior Clinical Trial Associate 32,000-35,000 35, Junior Project Manager/Junior Study Manager 45,000-55,000 52, Project Manager/Study Manager 50,000-60,000 58, Senior Project Manager/Study Manager 60,000-70,000 65, Senior Director 90, , , Hays Life Sciences Salary Guide & Market Overview

16 COMMERCIAL CONFIDENCE RETURNS Recruitment within the commercial sector is benefiting from increased confidence in the long-term future of the life sciences industry. From the latter half of 2013, we have seen increased demand within this area. Hand-in-hand with returning business confidence, professionals also seem more open to new opportunities. This is introducing much needed movement into the recruitment market. Desirable skills Former clinical research organisation (CRO) professionals are proving particularly attractive. Pharma companies are showing an increased interest in recruiting people with experience in outsourcing, bids and proposals. Individuals with the skills to negotiate favourable contracts are highly sought after. Recently, there has also been an increase in market analysis and research positions, possibly being fuelled by the industry s increased desire to see the most cost effective returns for brandrelated investment. We are also seeing a heightened demand for communication professionals, as companies look for someone to help to increase engagement from key stakeholders and really build the profile and reputation of the business. During the remainder of 2014 and into 2015, it is predicted that pharma companies will also be looking for commercial professionals with experience in digital marketing. This is an area that, to date, has been underdeveloped in pharma, compared to other industries of this size, and it is anticipated that companies are now looking to improve their digital presence while complying with this highly regulated area. Pay As for pay, residual market uncertainty during late 2013 into early 2014 has been reflected in a fairly static salary position for permanent employees. As a result of competition for available positions, contract rates have also been quite low. Predictions However, due to the improving confidence in the market, companies now seem to be looking forward and are in a position to commit to their professional recruitment, and the expectation is for more permanent positions to become available. As contract roles in the commercial sector appear to remain limited to junior and mid-management level it is expected that permanent contracts will increase their already dominant hold on the recruitment landscape. 14 Hays Life Sciences Salary Guide & Market Overview 2014

17 Commercial Range Typical Hourly Associate Brand Manager 28,000-35,000 30, UK Brand Manager 45,000-55,000 50, UK Marketing Manager 60,000-70,000 65, Digital Marketing Manager 60,000-75,000 70, Director of Marketing 80, ,000 90, EU/Global Business/Commercial Intelligence Manager 50,000-70,000 65, EU/Global Brand Manager 55,000-70,000 70, Key Account Manager 45,000-55,000 50, Hospital Sales Specialist 35,000-45,000 40, Senior Contract and Outsourcing Manager 70,000-90,000 80, Contract and Outsourcing Manager 45,000-65,000 55, Outsourcing Administrator 30,000-40,000 35, Hays Life Sciences Salary Guide & Market Overview

18 DRUG SAFETY ADAPTING TO CHANGE Changes in pharmacovigilance (PV) legislation dramatically changed the game for PV compliance, and with it altered the pattern of demand for professionals with expertise in this area. Demanding significantly more robust and specialist PV reporting from pharma, the new legislation has forced companies to rethink their core skill set requirements to far more specialist activity in reporting areas including, Periodic Safety Update Reports (PSURs), Risk Management Plan (RMP) writing, Pharmacovigilance System Master File (PSMF) Management and Medical Review Submissions. Employment status There is a great deal of flexibility for professionals within this sector as the market has become equally shared in terms of contract and permanent recruitment. Although there has been a recent drop in the number of contracts being tendered and awarded, the contract market within consultancies is looking strong for 2014/2015, due to specialist activity now required to meet the new PV legislation. Pay With this in mind, it is possible that contractors who can provide the requisite specialist services will be able to improve on contract rates that have recently become quite competitive ranging from per hour for junior professionals to per hour for management level personnel. At this early stage of the permanent market development, there is little impact on salaries to report. Salaries are stable at around 18-30k for junior level professionals rising to up to 100k+ for a management or director level professional. Future predictions Historically, permanent roles have not been a key feature of PV recruitment, however, within the past 12 months this form of employment has become the preferred route. Due to a change of operating culture within the pharma market, budgets are now in place to hire more permanent staff, and it is possible that during the coming 12 months, there may be 50% more permanent roles in the market, and far fewer contract roles. An exception, perhaps, is medical writing, for which contracts are expected to remain widely available 16 Hays Life Sciences Salary Guide & Market Overview 2014

19 Pharmacovigilance & Drug Safety Range Typical Hourly Pharmacovigilance Associate 18,000-30,000 20, Pharmacovigilance Officer 20,000-40,000 35, PV Project Manager/Coordinator 30,000-55,000 40, Medical Writer PSUR/RMPs 35,000-50,000 40, Pharmacovigilance Scientist (Senior) 40,000-65,000 50, Pharmacovigilance System Master File Specialist 45,000-60,000 55, Pharmacovigilance Team Leader 40,000-55,000 50, Pharmacovigilance Manager 50,000-65,000 55, Pharmacovigilance Associate Director (non GMC) 65,000-75,000 70, GMC Registered Physician 80, , , Head of Drug Safety 85, ,000 95, Hays Life Sciences Salary Guide & Market Overview

20 HEALTH ECONOMICS MEETING THE CHALLENGE Changing NHS drug procurement processes are forcing pharma companies to rethink the way they interact and sell within the UK. Market access teams are now faced with the challenge of re-aligning their focus to meet a changing NHS landscape, one that is characterised by new NHS service commissioning structures with more than a passing interest in securing best value for the NHS. As a result, professionals with a market access focus must demonstrate understanding of both the commercial needs of the pharma client, as well as sensitivity to the escalating pressures on NHS drug procurement. While a background in the NHS can prove useful, it is important that Health Economics and Outcome Research (HEOR) candidates speak the language of both purchaser and vendor. Employment status A significant proportion of the contract market is made up of freelance specialist consultants working directly with companies on specific project work, and for those professionals, premium rates can apply. However, as HEOR still accounts for only a relatively small proportion of the overall life sciences personnel headcount, the effect of permanent hires on the overall recruitment landscape is limited, particularly among smaller companies. Pay Typically, HEOR is a bottom-heavy hierarchy, where the majority of employees tend to be at the junior levels through to middle management. Smaller companies are showing signs of a more flexible approach to the rates paid to candidates with premium experience or a preferential skillset. Future predictions During the past few years, demand for HEOR professionals has slowed, as supply has caught up with demand. So far during 2014 the indications are that this hiring slowdown has been replaced by a growing sense of confidence. Companies feel secure enough in their commercial capability to replace lost headcount and to grow teams where they can, although this is yet to result in significant impact on the volume of available positions. Small-to-medium sized companies seem the most likely to want to expand. Over the next 12 months, the contract market is expected to grow, as companies look to fill gaps within their work force while permanent roles are being sourced. 18 Hays Life Sciences Salary Guide & Market Overview 2014

21 Health Economics & Market Access Within Pharma Range Typical Daily Health Economist 40,000-55,000 50, Senior Health Economist 55,000-70,000 65, Health EC Manager 55,000-65,000 60, Senior Health EC Manager 60,000-80,000 75, Observational Research Manager 50,000-60,000 55, Senior Observational Research Manager 60,000-70,000 68, Director of Health Economics 80, ,000 95, Senior Director of Health Economics 90, , , ,200 Manager Market Access 50,000-65,000 58, Senior Manager Market Access 65,000-75,000 70, Director/Head of Market Access 80, ,000 95, ,000 Senior Director of Market Access 90, , , ,200 Within consultancy Range Typical Daily HEOR Analyst 28,000-35,000 34, HEOR Consultant 40,000-55,000 48, Senior HEOR Consultant 55,000-70,000 65, AD of HEOR 80, , Director of HEOR up to 100,000 95, Vice President/Senior Vice President of HEOR up to 140, , ,200 Hays Life Sciences Salary Guide & Market Overview

22 MEDICAL INFORMATION OPENING DOORS Risk-averse recruitment strategies are encouraging more senior level medical information appointments. As an activity area, medical information reflects the fortunes of the industry as a whole. Following a slow end to 2013, the start of 2014 brought with it a greater number of vacancies, especially at the more senior level. Skillset change The updated ABPI Code of Practice, which came into effect on January 1, 2014 has had a major impact on the sector. The new code reduces pharma companies reliance on medics for delivering certain tasks, and with it, opens the doors for lower salary cost professionals, such as pharmacists, to manage tasks such as final signatory of promotional materials. Employment status Historically, there has been an even split between contract and permanent positions within medical information. However, there has been a move toward contract recruitment, due to the recent industry uncertainty. Yet, it is possible that increasing stability in the pharma sector will result in increased demand for permanent positions, levelling out the job market in this area once more. Pay Economic uncertainty, coupled with the efficiency demands being made of all NHS business partners, have combined to dampen pay rates in medical information. While salary levels and benefits have remained static over the past six months, contract rates have reduced in line with more robust budgeting strategy. Currently, the pay expectation for contract work may range between per hour for junior level personnel to per hour for senior level staff. Permanent employees may look forward to salaries ranging between 27-65k depending on experience. Trend analysis As the supply of pharmacists in the workplace shows few signs of abating if anything an oversupply is forecast over the next few years it is likely that pharmacists will become more commonplace in the pharma industry. Those with proven writing skills and technical expertise (demonstrated by a PhD level qualification) are particularly well placed to benefit from the recruitment opportunities now presenting in the Medical Information sector. Multilingual candidates also have an advantage for entry-level positions within life sciences, particularly in the third party (outsourced) environment commonly used in the pharma world, and particularly when specific market coverage is required. With no sign of reducing demand for outsourced services, linguists are expected to maintain their advantage. 20 Hays Life Sciences Salary Guide & Market Overview 2014

23 Medical Information Range Typical Hourly/Daily Medical Information Officer/Associate/Specialist 27,000-35,000 33, hourly Senior Medical Information Officer/Associate/Specialist 35,000-40,000 38, hourly Medical Information Manager 45,000-50,000 48, hourly Medical Information Director/Head of Medical Information 55,000-60,000 55, hourly Scientific Advisor 45,000-55,000 50, hourly Medical Science Liaison 45,000-65,000 55, daily Medical Affairs/Clinical Development Range Typical Daily Medical Advisor 60,000-70,000 65, Senior Medical Advisor 65,000-80,000 75,000 1,000+ Medical Manager 80,000-95,000 87,000 1,000+ Associate Medical Director 90, ,000 95,000 1,000+ Medical Director 95, , ,000 1,000+ Senior Medical Director 110, , ,000 1,100+ Executive Medical Director 120, , ,000 1,100+ Vice President 140, ,200+ Chief Medical Officer 180, ,200+ Clinical Research Physician 70,000-80,000 60, Senior Clinical Research Physician 75,000-85,000 75, Clinical Research Director 75,000-95,000 85,000 1,200+ Clinical Development Physician 70,000-80,000 75,000 - Senior Clinical Development Physician 75,000-85,000 80,000 - Associate Clinical Director 85,000-95,000 90,000 - Hays Life Sciences Salary Guide & Market Overview

24 QUALITY ASSURANCE CHANGING LEGISLATION Legislative change has provided a welcome boost to the QA market, and the job market in most areas. Of all QA specialisms, it is clinical pharmacovigilance (PV) that is expected to grab the most headlines over the coming year, as companies struggle to fill statutory roles created by the 2012 EU PV legislation, while faced with a shortage of skilled candidates. EU legislation in Good Distribution Practice (GDP), effective from 2013, has also raised the need for personnel to take on the statutory regulatory role of responsible person, and to lead on the delivery of quality management systems related to GDP now required by the regulation. This has created some additional demand for personnel although in some companies the demands of the new legislation are being met by internal specialists. Employment status Historically, the QA market has been dominated by permanent contracts, which have at times outnumbered contract positions by a ratio of four-to-one. Boosted by greater economic certainty and stability in the legislative infrastructure, investment in permanent headcount is set to continue. However, this does not preclude opportunities in the contract market; due to the plethora of retirement age Qualified Persons (another statutory accountable role in QA) in the market, and the dearth of newcomers, there are, potentially, emerging opportunities for contract QPs. It is possible that the market may see more QP sponsorships being offered, to fill this gap. Also attractive to the contract market are those professionals offering the much sought after clinical PV specialism. The same is also true for specialists in Good Manufacturing Practice (GMP) and GDP although demand for contract workers will be dampened by the readier supply of candidates in this field. Pay In terms of salaries, the overall trend is for rises in line with inflation, and for salary growth over the coming year, particularly in areas other than GDP. While demand continues to outstrip supply, clinical PV and QP professionals, whether permanent or contract, will continue to command the highest salaries. Forecast Both in terms of supply and demand, the QA market is expected to remain lively over the next 12 months, as employers and candidates feel confident and positive about the new employment opportunities. An example is the computer systems validation skillset, which has traditionally been quite passive in the UK, but recently has shown more life as companies update and maintain regulatory compliant IT solutions. The inclusion of medical devices in the QA workstream gives further grounds for optimism and should provide new recruitment opportunities. 22 Hays Life Sciences Salary Guide & Market Overview 2014

25 Quality Assurance Range Typical Daily Qualified Person 65,000-80,000 70, ,200 Responsible Person 55,000-65,000 57, Quality Assurance GMP Range Typical Daily Quality Assurance Director 70,000-90,000 85, ,200 Quality Assurance Associate Director 65,000-80,000 78, ,000 Senior Quality Assurance Manager 55,000-65,000 60, Quality Assurance Manager 50,000-60,000 53, Senior Quality Assurance Officer 40,000-50,000 45, Quality Assurance Officer 35,000-45,000 40, CSV Manager 55,000-65,000 55, Validation Engineer 30,000-55,000 40, Quality Assurance GCP Range Typical Daily Quality Assurance Auditor 40,000-50,000 45, Senior Quality Assurance Auditor 45,000-55,000 50, Quality Assurance Manager 55,000-60,000 60, ,000 Senior Quality Assurance Manager 65,000-75,000 70, ,200 Quality Assurance Associate Director 75,000-90,000 80, ,500 Quality Assurance Director 80, ,000 90, ,400 Quality Assurance Admin GMP and GCP 25,000-35,000 30, Quality Assurance Systems Manager GMP and GCP 45,000-55,000 50, Quality Assurance Systems Manager 45,000-55,000 50,000 - Hays Life Sciences Salary Guide & Market Overview

26 REGULATORY AFFAIRS DEMANDING ATTENTION As science constantly evolves, new and innovative therapies are coming through the pipeline. The need for strong scientific regulatory professionals is paramount to ensure this next generation of products reaches patients, through current and future regulatory models. In an about-turn from the job-cutting days of the late noughties, vacancies for permanent roles are now increasing in all areas (pharma, biotech, generic and consumer medicines, and in medical devices) and at management levels. Companies are not just looking to replace previously lost roles. Additional permanent roles are being created as companies increase their headcount to deliver their regulatory obligations, and not just on pipeline development drugs. Commercial opportunities are arising in post-approval regulatory affairs involving high volume patent expiry drugs, as well as the riskier but high gain biosimilar drug development field. This is stimulating demand for permanent roles in new business areas. There are also examples of companies creating positions as a result of internal restructure and bringing former EU roles back into the UK, while others, keeping an eye on increasing outsourcing costs, are moving functions such as regulatory publishing back in-house. Pay Salaries and benefits remained pretty stable during 2013 but the prediction is that permanent packages will improve, and will start to include long-term incentives such as stock options and final salary pensions. Contract rates are likely to remain steady during the remainder of 2014 into 2015, as competition for each contract increases. Predictions Coupled with a particular shortage of manager level staff across the board in RA the delayed effect of the cuts seen in junior level roles at the start of the economic downturn in recruitment in both the permanent and contract markets is expected to become extremely buoyant during The demand for contractors has always been steady, but numbers are expected to increase further. 24 Hays Life Sciences Salary Guide & Market Overview 2014

27 Regulatory Affairs Range Typical Hourly Regulatory Affairs Officer 20,000-30,000 26, Regulatory Affairs Associate 25,000-35,000 33, Regulatory Affairs Senior Associate 35,000-47,000 39, Regulatory Affairs Associate Manager 45,000-55,000 47, Regulatory Affairs Manager 50,000-65,000 55, Regulatory Affairs Senior Manager 60,000-70,000 66, Regulatory Affairs Associate Director 70,000-90,000 77, Regulatory Affairs Director 80, ,000 88, Regulatory Affairs Senior Director 100, , , Regulatory Affairs Vice President 120, , , Hays Life Sciences Salary Guide & Market Overview

28 MARKET INSIGHT In the following pages we hear from industry leaders and experts on the topics currently affecting life sciences; from winning the war for talent, to opportunities for women within business, as well as the exciting future that MedCity brings to this sector. 26 Hays Life Sciences Salary Guide & Market Overview 2014

29 PROMISING DEVELOPMENTS Steve Bates Chief Executive Officer The BioIndustry Association (BIA) There are over 1000 companies in the UK medical biotechnology sector, with 360 active in research and development (R&D). I m proud and excited to be working in a sector with so much promise for the development of new medical treatments for patients, for cutting edge science, for the UK economy, and for developing and retaining a highly skilled workforce. The opportunities offered by UK biotechnology R&D and manufacturing are recognised by the government, as shown by a number of supportive measures such as the Biomedical Catalyst funding programme. The BioIndustry Association (BIA) has supported innovative life sciences companies since its establishment in 1989, and it remains at the forefront of UK bioscience, serving as its voice, connecting individuals and organisations and helping to shape the future of the sector. BIA members are responsible for over 90% of biotech medicines currently in clinical development in the UK and, as their association, we are encouraged to see the contribution of innovative biotechnology companies gaining much-needed recognition within the life sciences sector. Our recent inaugural annual lecture looked back on how the sector has evolved in the last 25 years and considered what exciting developments the next few decades might bring. Further progress in areas like cell therapy, precision medicine and big data are set to advance the biotechnology industry and will bring new challenges for the sector. They promise to transform the life sciences landscape, as well as the treatment options for patients. Skill set development We feel that the bioindustry has a unique contribution to make to the life sciences industry of tomorrow. According to the employees polled by Hays for this life sciences report, being involved in a challenging role or project is one of the main drivers of employee recruitment and retention. This way of working is commonplace in the SME environment: professionals are often exposed to multiple roles in leadership, management, commercialisation, and across all professional specialities: from data analysis through to regulatory compliance. As a result, the skill set demanded can be very broad and this offers a fertile learning environment for those at the start of a commercial career, as well as for those with more experience to share. SMEs also operate as part of a wider biopharmaceutical ecosystem, in which the bigger players provide valuable skills transference to their smaller counterparts. As the industry transitions towards an era of precision medicine and focuses on promising areas such as regenerative medicine and synthetic biology, some of the highly specialised skillsets offered by those working within the SME environment will become increasingly desirable. Skill set challenges But the sector also has its challenges, and it is one of the goals of the BIA to deliver the best possible environment for growth and innovation for its members. Talent management and development can be particular priorities for the SME. In larger companies there may be large and structured workforce development programmes but, in the SME environment, difficulty in finding the time and resources to implement structured training can prevent the realisation of those benefits. In cases like these, a bespoke approach for SMEs such as on the job training, one-day courses or e-learning programmes, can be valuable. Being able to recruit the right talent at the right time is also critical, and an extension of the visa process for exceptional talent would help to ensure expert scientists can take up often ground-breaking work in the UK. The sector can also miss out on the talent pipeline stemming from university placements and some companies could benefit from raising their profile with universities or using a flexible service like the Placements Service run by Cogent. Anecdotally, employers sometimes report there is a lack of practical experience, so the value of lab experience should not be underestimated. Of course, as in any sector, there is value in diversity and we believe that people who have taken career breaks can bring a unique perspective and experience to a workplace, which can be supported by flexible work policies. As the nature of bioscience evolves, experience of cross-disciplinary working will become more sought after. For example, turning the research currently taking place in cell therapies into clinical products for patients is going to take some of the best brains in tissue science, regulation, health economics, surface chemistry, cell biology, manufacturing and logistics. Such considerations are undoubtedly going to become an increasing feature of the war for talent in the future. Hays Life Sciences Salary Guide & Market Overview