Contact Information: CONTACT INFORMATION: David Richardson 919-433-0216
According to Cutting Edge Information, Companies Now Outsource Less of Clinical Development Budget
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - October 16, 2008) - Pharmaceutical companies across
the industry have significantly cut outlays to outsourcing as a percentage
of clinical development budgets, according to "Streamlining Clinical
Trials," a new study by pharmaceutical business intelligence leader Cutting
Edge Information. Comparison with earlier research by Cutting Edge
Information in this arena reveals that reductions occur in every phase.
The new study shows that outsourcing as a percentage of the budget has
reduced an average of 20% for every phase from 2006 research. In Phase 1,
the percentage of the clinical development budget outsourced dropped from
65% in 2006 to 35% of the average 2008 budget. The percentage increases as
companies proceed into later phases of a trial.
According to the study, in efforts to cut costs, companies are not allowing
vendors the same free reign as in the past. A number of companies have
instated increasingly more milestone based payments. Other companies have
started outsourcing only when the necessary resources are not available
in-house.
"Companies are now realizing that outsourcing does not necessarily make
things easier, cheaper, or remove a burden from their plate," says lead
author of the report David Richardson. "Research has appeared arguing
against the cost-saving effects of outsourcing. Also, companies are being
more frugal. Keeping things in-house grants easier oversight because of
institutional proximity, ensuring efficient and competent work, instead of
spending the same time managing a CRO."
"Streamlining Clinical Trials" (www.clinicaltrialbenchmarking.com) covers
resource allocation, performance measurement, continuous process
improvement, patient and investigator recruitment and adaptive trial
designs. Data include clinical development budgets, clinical operations
team structures and staffing levels, performance measurement and
management, clinical operations hurdles and process improvement tools and
tactics. The report focuses on three aspects:
Patient Recruitment: Patient recruitment continues to dominate clinical
timelines and budgets. The report devotes an entire chapter to this
challenge, providing the latest trends and tools in recruitment.
Budgeting and Performance Assessments: Clinical project managers must set
clear performance expectations and measure and manage trials. The report
provides clinical spending benchmarks to assist in trial budgeting and
planning.
Clinical Operations Structure and Work Flow: Clinical trial management team
members must know their roles and responsibilities, and communication with
vendors and investigators must be seamless. The report outlines major
obstacles clinical teams face and presents real-company, proven solutions.