Clinical Outsourcing Strong in Recession, Says New Report From Cutting Edge Information


RESEARCH TRIANGLE PARK, NC--(Marketwire - April 9, 2009) - In response to the economic downturn, pharma companies are looking into every available option to save money without sacrificing clinical development goals. Clinical research organizations (CROs) are reaping the benefits. According to a new report released by Cutting Edge Information, 58% of pharmaceutical and biotech companies elect to fully outsource nearly every clinical trial task.

Other companies choose to only outsource specific parts of drug development. No matter how they approach the process, however, pharma and biotech companies make strategic gains by working with vendors. Outsourcing lets them manage costs while tapping into the experience and reach of outside companies that specialize in conducting clinical studies.

"Clinical Outsourcing Strategy: Selecting Partners and Managing Relationships" (http://www.clinicaloutsourcingstrategy.com) details the prominence of outsourcing at different stages of drug development. Data reveal how companies balance vendor-delegated tasks with in-house activities. According to the report, for example, 68% of respondents outsource data management. At the other end of the spectrum, most companies handle trial supplies management and medical writing themselves. Protocol development tends to be the last activity kept in-house.

"Strategic outsourcing is a firmly ensconced part of the drug development process," said Jeremy Spivey, research analyst for Cutting Edge Information and lead author of the report. "Ideally, CROs and other clinical vendors allow organizations to carefully manage costs while providing world-class capabilities and expertise."

The report examines clinical outsourcing trends and provides strategies for eliminating common obstacles in CRO selection and management. It shows trial sponsors how to formulate a proactive outsourcing strategy, establish criteria for selecting a vendor and manage day-to-day CRO relationships. It also breaks down the risks and benefits of outsourcing to underdeveloped countries, an increasingly prominent practice.

Twenty-four top pharma and biotechnology companies participated in the study. Key metrics measure the following vendor-selection criteria:

--  Overall cost and preferred status in CRO selection
--  CRO size and geographic reach
--  Work quality
--  Relationship management
--  Different CROs' ability to meet deadlines
    

The report also breaks down the outsourcing timeline with a focus on the following points:

--  Number of CROs submitting proposals by clinical phase
--  Weeks elapsed from proposal deadline to final CRO/vendor selection by
    clinical phase
--  Time spent negotiating contracts with CROs/vendors
    

A complimentary report brochure is available at http://www.clinicaloutsourcingstrategy.com.

Contact Information: Contact Jeremy Spivey 919-433-0373