
Moderator:
Kenneth Getz, MBA, Senior Research Fellow, TUFTS CENTER FOR THE STUDY OF DRUG DEVELOPMENT; Founder & Chairman, CISCRP
Panelists:
John W. Hubbard, Ph.D. FCP, Global President, ICON CLINICAL RESEARCH
Jeffrey Kasher, PhD, Vice President and Chief Operating Officer, Global Clinical Development, ELI LILLY & COMPANY
Charles Morris, MD, Vice President, Worldwide Clinical Research, CEPHALON
Daniel M. Perlman, CEO and Chairman, RPS INCDr. R. Adrian Otte, MB, BCH, Vice President, Global Development Operations, AMGEN
Getz looks at the themes that have been constant at the events. This year’s themes have been the impact of the global economic crisis and it’s effect on the biotech sector, and the shifting characteristics of the sponsor/provider relationship. What is your operating environment? There are declining rates of MDA approval, success rates are consistently low, there are strong capacity constraints, as well as items in the environment that suggest growth. There a record number of clinical trials going on, and the number of projects worldwide has skyrocketed. How do we navigate through these characteristics?
There are more drugs in predevelopment, but they rarely make it farther. Why? Investment can’t justify support or there is an increasing number of compounds are terminated before they reach drug development.
The economy is also affecting the Pharma industry. Capacity is constrained in the Pharma industry, development has been flat within the Phase II/III arena. In past 18 months, layoffs and consolidation, 5,000 to 7,000 drug development professionals have lost their jobs. The available capital is dwindling as well.
The specialty, midsized and large major Pharma acknowledge that they need to consolidate the number of service providers. Only about 25% of relationships are defined as functional service relationships. There is a lot of interest in increasing the level of alliances over time. The primary advantages for a transactional relationship rely of flexibility and the availability to secure lower cost bids. There is a sense that the functional service relationship is a bridge that will lead to an alliance arrangement. The majority of sponsors believe they will always take a mixed a approach, depending on the portfolio. Large sponsors want to integrate risk sharing, the incentives for the CRO will be difficult to align with that of the sponsor. Higher level of relationship if there is a higher level of risk sharing.
Standardization is the main thing that will improve quality. It will also reduce costs. It’s required a change of mindset in the CRO, but in addition to the companies. At Eli Lilly, they have to understand and define processes. They have to be very clear about what they’re looking for. The company has moved to the partner model. Senior management engagement is very high with the CROs. There are fewer providers, and they’re looking to retain and maintain their core capabilities. At Icon Clinical, the issues are around the clarity of the documentation. There was a lot of dissatisfaction in the full service outsourcing model. They’ve formed a better relationship around getting the standards in place and setting the expectations in addition to the senior level involvement. This must be built into the planning. Once the foundation is set, there is stabilization. There are four strategic alliances at Icon, and the level of satisfaction of the employees is higher than in the transactional model.