We recently reported the deals that the Encorium Group, as well as Covance have made. In latest news as reported by PharmaLive, Parexel announced closure on the deal to acquire ClinPhone. This will help both companies become leaders for eClinical technologies. This is inline with the trend of growth within the contract research organization industry.
Josef von Rickenbach, Chairman and CEO of Parexel, released this statement regarding the acquisition:
"Biopharmaceutical companies require robust technology solutions to increase the efficiency and productivity of clinical research. This is especially important given the growing complexity and global nature of clinical studies today. We believe this acquisition further solidifies PAREXEL's leadership in providing integrated clinical and technology expertise. Combining the sophisticated, in-depth capabilities of Perceptive and ClinPhone represents a major step forward for PAREXEL in meeting increased industry demand for a truly comprehensive eClinical platform."
According to this article at Clinical Trials Today, trial design and regulatory consulting is experiencing a surge in Phase I of clinical trials. Most companies going to CROs are looking to make quicker decisions, and are also looking for someone to provide thought leadership.
This article focuses on Parexel, who’s conforming to the demands of the customers and moving the patient recruitment step to the first possible phase.
Michelle Middle, vice president and leader of Parexel’s worldwide pharmacology business had this to say about the change:
“Traditionally, Parexel’s phase I work focused on healthy volunteers, but we are moving more towards early drug development, which includes proof-of-concept work. We are seeing, across the board, that sponsors are seeking patient volunteers [intent-to-treat subjects] as soon as possible in phase I. We review every potential protocol we receive from a scientific point of view and suggest to sponsors, if it is necessary, different study designs.”
The efficiency of the systems must be kept up when dealing with this new way of running the trials. Timelines must be maintained, as well as the retention of healthy patients who are participating in the trial.
About 25 percent of all preclinical drug testing is already outsourced to CROs, but according to this latest article in the International Herald Tribune, it is expected to grow to 50 percent in three years. Over the next five years, larger CROs are expected to absorb many specialized companies to boost their diversity. This expectation has already lift shares of CROs such as Covance and Parexel International, which were in stock market trouble this year.
Drug companies save millions of dollars each year by outsourcing clinical trials to CROs since it eliminates the need to build its own laboratories and researchers are not needed. David Windley, an analyst with Jefferies mentions as long as drug makers "keep trying to develop new drugs, then you have to do a lot of work. What they're then doing, they're turning to outsourcing in a more cost-efficient way."