CROs Open New Opportunities for Employment

The Financial Express reports that since CROs and the number of outsourced trials are multiplying in size, this is building many job opportunities in countries like India. Many analysts are estimating that total clinical research spending in India will increase to more than 30% annually through 2010.

This in turn will create a huge demand for experienced and qualified clinical research professionals. In terms of numbers, this will create more than $50,000 clinical research positions by the year 2010. The salary for clinical research professional range from $40,000 per year for a clinical research coordinator and $1,000,000 for a business development manager.

Clinical Outsourcing Spend is Going Down

We recently posted that companies have been spending less and less money in clinical outsourcing as many companies are realizing that outsourcing does not necessarily make everything cheaper.

I have come across this post form PharmaTimes and another post from Outsourcing-Pharma and am wondering if this is a growing trend within pharma and biotech companies? I’m curious as to how this sudden change will this affect the future of contract research organizations.

Reducing Costs and Time of Cancer Trials

Outsourcing-pharma.com reports that a non-profit group made up of CEOs of drugmakers working in oncology hopes to shorten the drug testing process by making a “common language” available for clinical trial contracts through a set of standardized templates.

It is speculated that this procedure can cut contract negotiation times from 300 days to 30 days. This is coming at a crucial time in the pharma industry since the number of oncology clinical trials rose by 13 percent last year. The templates were part of a 14-month project which was led by the CEO Roundtable on Cancer's Life Sciences Consortium (LSC), a task force of CEO Roundtable members in the oncology pharmaceutical/biotechnology industries in conjunction with the NCI.

Pharma Companies Are Outsourcing Less of Clinical Development Budget

Pharmaceutical Online reports that according to a study conducted by Cutting Edge Information, pharma companies across the industry are cutting back on outsourcing as a percentage of clinical development budgets. Compared to 2006, outsourcing as a percentage of the budget has reduced an average of 20% for every phase.

David Richardson, the lead author of the report mentions:

"Companies are now realizing that outsourcing does not necessarily make things easier, cheaper, or remove a burden from their plate. 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."

Are companies budgeting less towards their outsourcing?

In an article at International Business Times, they say that companies have reduced their spending when it comes to outlays in outsourcing as a percentage of their clinical budget. In the study, the found that an average of 20% of the budget was reduced after each phase of the trial in research performed in 2006.

David Richardson, the lead author of the report, had this to say:
"Companies are now realizing that outsourcing does not necessarily make things easier, cheaper, or remove a burden from their plate. 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."

Do you agree with his statement? Is this is what's happening with your clinical trial?

Averion expands in Eastern Europe

Averion, a clinical research outsourcer, recently announced that they'd be expanding operations and opening an office in Prague, Czech Republic. This is following a recent opening in Kiev, Ukraine, as well as Russia, Slovakia and Hungary.

According to this article:

The Czech Republic offers a strong clinical trial environment with large patient populations and well-qualified investigators in a broad range of indications, i.e. factors seen by its clients as top priorities and vital to the successful conduct of international trials.

New report focusing on outsourcing in central Europe

Centerwatch has published a new report focusing on outsourcing in Central and Eastern Europe. It focuses on the strategies that CROs and biotech companies need to focus on to succeed in these regions.

The author of the report, Sara Gambrill, had this to say about the report and the benefits of researching in Central and Eastern Europe:
“Industry experience and expertise in some countries, such as Poland and The Czech Republic, rival the West’s. Russia and Ukraine, with their very large populations and increasing experience, offer enormous growth potential.”

Find out more here.