Contact Information: CONTACT: Stephanie Swanson 919-433-0212
Economy Challenges Clinical Trial Teams and CROs, Says Cutting Edge Information
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - September 10, 2009) - Recession-driven slowdowns in
drug development mean problems for some biopharmaceutical companies and, by
extension, the contract research organizations (CROs) they employ to test
prospective therapies.
For small drug developers trying to get a product to market, it's a vicious
circle. Traditional sources of funding, such as venture capital and public
markets, have dried up. The companies' diminishing levels of operating
capital then stall the very development programs that appeal to
investors -- and that promise revenue down the line.
Those problems then bleed over to CRO partners. Earlier this year,
according to the Charlotte Business Journal, leading CRO PPD Inc. announced
layoffs and a scaling back of plans to expand into a new North Carolina
business park. Charles River Laboratories, another large CRO, made similar
layoffs amid declining earnings. In both cases, a main culprit is project
delays and cancellations.
Even large drug companies report efforts to manage costs in expensive areas
such as clinical development. "Strategic Clinical Sourcing: Managing Costs
and CROs," a new report from Cutting Edge Information, discusses how
sourcing professionals carefully parse CRO proposals to better understand
where their money is going.
The result is often a reevaluation of development strategies and a new
drive to seek alternatives with the lowest possible costs. Trial planners
carefully balance in-house and outsourced tasks to get the best return on
investment.
"Well-executed clinical outsourcing helps drug developers get more for the
money they are spending," said Jason Richardson, president of Cutting Edge
Information. "The most successful sponsors build strategies that leverage
the capabilities of CROs and other clinical vendors specifically for each
molecule in development. Even though the life sciences sector has
resilience in the recession, drug companies are searching for vendor
relationships that enable them to tighten their belts."
Richardson expects teams to pay careful attention to CROs' costs. "In the
big picture, clinical outsourcing will continue to grow. But times being
what they are, now is an excellent time for project managers to fully vet
details like the unit hour costs in their vendor contracts."
The report, "Strategic Clinical Sourcing: Managing Costs and CROs,"
(http://www.cuttingedgeinfo.com/clinical-outsourcing-strategy/) discusses
the processes, investments, benefits, and pitfalls of trial outsourcing.
It also examines unit costs and headcounts along with strategies for
addressing common obstacles in CRO selection and management.