Contact Information: CONTACT: Jeremy Spivey 919-433-0373
Clinical Development Riding Out Recession; Cutting Edge Information Examines Trends and Provides Strategies for Eliminating Obstacles
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - June 4, 2009) - The worldwide recession
threatens to hamper drug development as companies reexamine their plans for
clinical testing.
Major late-stage projects -- the drugs closest to regulatory approval --
won't feel the pinch. Nor will studies funded by major pharmaceutical and
biotech companies, whose finances are relatively stable.
However, trial sponsors (drug companies) and the clinical services industry
are feeling the effects of economic struggles. Standard and Poor's
estimates that the clinical research organization (CRO) sector alone is
generating $20 billion of revenue per year, but projected cancellations
continue to shrink revenue. Global CROs such as Kendle and PPD, for
example, announced disappointing Q1 returns thanks in part to struggles
among client firms. Smaller sponsors, especially those companies not yet
producing revenue, have had to reassess development plans as operating
capital dwindles and the future remains unclear.
For clinical services, however, the recession should prove a temporary
slowdown. Firms continue to expand or build their clinical capabilities.
For example, Tata Consultancy Services (TCS), the Indian information
technology giant, has focused on growing its existing clinical data
management service. As sponsors look to cut development costs and improve
clinical productivity, more firms will increase their presence in clinical
development.
Although the economic downturn may fade into memory for clinical service
companies, relationship management with clients will always be a chief
concern. A recent study by research firm Cutting Edge Information reports
that sponsors ranked "finding experienced personnel" as a 4.1 out of 5 in
terms of importance when selecting a clinical services partner. Likewise, a
vendor's "reputation for success" is rated 4.1 out of 5.
"Companies are rapidly filling an expanding set of specialized roles in
clinical development," said Jeremy Spivey, author of the report. "At the
same time, sponsors are diligent in the vendor selection process. Their
needs must be met, whether with a preferred vendor or with a new partner."
The report, "Clinical Outsourcing Strategy: Selecting Partners and Managing
Relationships" (http://www.clinicaloutsourcingstrategy.com) discusses
benefits and drawbacks when outsourcing trials. The report examines
clinical outsourcing trends and provides strategies for eliminating common
obstacles in CRO selection and management. It also shows trial sponsors how
to formulate a proactive outsourcing strategy, establish criteria for
selecting a vendor, and manage day-to-day CRO relationships.