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BEST PRACTICES, ® LLC Best Practices, LLC Strategic Benchmarking Research Clinical Affairs Excellence: Benchmarking Clinical Trial Strategies for Pharmaceutical Success in a Global Marketplace

Pharma Clinical Affairs Excellence Research Summary

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Page 1: Pharma Clinical Affairs Excellence Research Summary

BEST PRACTICES,

®

LLC

Best Practices, LLC Strategic Benchmarking Research

Clinical Affairs Excellence: Benchmarking Clinical Trial Strategies for

Pharmaceutical Success in a Global Marketplace

Page 2: Pharma Clinical Affairs Excellence Research Summary

BEST PRACTICES,

®

LLC

TABLE OF CONTENTS I. Executive Brief, Framework for Clinical, Preparing Clinical, p.2-3

II. Executive Summary

Business Issue and Project Blueprint, p.6-7

Participants, p.8

Key Findings, p.9-12

III. Outside-U.S. Clinical Trial Overview and Insights, p.13-17

IV. Clinical Affairs Budget and FTEs, p. 18-25

V. Clinical Affairs Presence Around the World, p.26-30

VI. Cost and Quality of Outside-U.S. Trials and Outsourcing, p.31-37

VII. Outsourcing Levels for Key Clinical Activities, p.38-47

VIII. Vendor Selection and Outsourcing Attributes, p.48-54

IX. CRA, CRM, and CRD Competencies & Outsourcing Levels, p. 55-64

X. Clinical Affairs Organizational Fit, p.65-72

XI. Outsourcing Success Factors and Pitfalls, p. 73-75

XII. Trends and Directions for Outside-U.S. Trials & Outsourcing, p.76-78

XIII. Appendix, p. 79-81

XIV. About Best Practices, LLC, p.82

Page 3: Pharma Clinical Affairs Excellence Research Summary

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Formulate a Strategic Approach for Engaging

Emerging Regions in Clinical Affairs Activities

Business Issue & Objectives

Objectives:

Determine the regions where pharma organizations conduct clinical trials and percent

of patients recruited annually from each region.

Identify which Clinical Affairs activities are best suited to be outsourced or kept in-

house.

Gauge what the experience of pharma organizations has been relative to the cost of

outsourcing clinical trial activities.

Rate the value of benefits associated with outsourcing clinical trial activities.

Best Practices, LLC conducted this benchmarking study to help biopharma organizations set a strategic direction for conducting clinical trial activities in emerging regions of the world.

Field Research & Insight Development:

Survey 7 clinical leaders at 6 pharma companies.

Conduct four executive interviews to collect

qualitative insights from selected survey participants.

INF

OR

M

Objective:

Page 4: Pharma Clinical Affairs Excellence Research Summary

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Directors &

Senior

Directors

71%

Head of

Clinical

Operations

29%

4

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Pharma Universe of Learning: Leveraging Group Knowledge

(n = 7)

Respondent Job Level

Seven participants from six pharmaceutical companies participated. The study attracted a strong group of experienced pharmaceutical Clinical Affairs executives. Two were at the vice president level and five were at the director level.

Companies

Pharma Segment

Page 5: Pharma Clinical Affairs Excellence Research Summary

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Q. What were the approximate total 2010 revenues for your company and the corresponding Clinical

Affairs Spend?

Estimated Revenue

($USD):

Clinical Affairs Spend

($USD):

Clinical Affairs Spend/

Company Revenue:

Max - - -

Mean $14,760,000,000 $460,500,000 7.43%

Median $7,000,000,000 $315,000,000 6.15%

Min - - -

Pharma Segment: Revenue and Clinical Affairs Spend

Pharma Segment: Average Revenue $14B with $460M Clinical Budget

An outlier pushed the pharmaceutical segment’s average Clinical Affairs budget to 7 percent of an organizations total revenues. Due to the outlier effect, a more comparative measure may be the median, which had clinical affairs budget representing 6 percent of organizations’ overall revenues.

(n = 5 4 4)

(Note : able to report mean and median only)

Page 6: Pharma Clinical Affairs Excellence Research Summary

BEST PRACTICES,

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Outsourced

60%

Offshored

6%

Insourced

34%

6

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Q. What is the approximate staff sourcing percentage mix of Clinical Trials conducted across your

global enterprise in terms of % In sourced Staffing, % Offshore Staffing, and % Outsourced Staffing

(n = 6)

In sourced

Staffing of

Clinical

Affairs/

Clinical Trials

Offshore

Staffing

Clinical

Affairs/

Clinical Trials

Outsourced

Staffing of

Clinical

Affairs/

Clinical Trials

Max 70% 15% 80%

Mean 34% 6% 60%

Median 30% 5% 60%

Min 15% 0% 30%

Average Staff Sourcing Mix Staff Sourcing Mix Pharma

Pharma Segment: Staff Resourcing Mix

Pharma Segment: Most Trial Staff Outsourced

Pharma participants said 60 percent of their clinical trial staff are outsourced, on average. In-house staff represented only a third of the staff devoted to clinical trials. The pharma sector has seized on use of CROs as a way to reduce long-term clinical costs.

Page 7: Pharma Clinical Affairs Excellence Research Summary

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Q. In general, how do regulatory authorities react to clinical trial data from research conducted

outside the U.S.?

(n = 7)

Few

questions

about data

43%

Extensive

conversations

about data

29%

No

questions

14%

Other

14%

Other:

• “No Phase IV trial

conducted

outside the US

requiring label

change.”

Pharma Segment: Reaction of Regulators to Outside-US Clinical Trial Data

Pharma participants appeared more comfortable with data from trials conducted outside the U.S. Fifty-seven percent of the pharma segment felt regulators had few to no questions about data from outside regions. Still, a third felt the data led to extensive conversations.

Pharma Segment Sees Few to No Questions on Data

Page 8: Pharma Clinical Affairs Excellence Research Summary

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Q. By clinical affairs activity, note the percent of activities that outsourced and the percent that are

handled in-house (Total of each row = 100%).

Pharma Segment: Outsourced vs. In-house Breakdown Summary

70%

52%

68%

74%

78%

60%

60%

30%

48%

32%

26%

22%

40%

40%

Site Mangement

Data Analysis

Trial Management

Patient Enrollment

Data Management

Investigator

Recruitment

Site Evaluation

Outsourced In-house

Pharma Segment: Clinical Activities Overview Shows Outsourcing a Major Tool for All Key Activities This slide presents an overview of pharma participants’ outsourcing levels for seven key Clinical activities. Participants outsource a majority of the tasks associated with each activity. The activities with the most outsourcing are data management and patient enrollment.

n =

6

6

5

5

5

5

3

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Highly Inaccurate Somewhat Inaccurate Inconsistent Somewhat Accurate Highly Accurate

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Q. If you outsource, what capabilities are best predictors that the your outsource vendor will

provide a high quality service that meets your expectations:

(n = 5)

Pharma Segment: Predictors of Vendor Quality

Pharma Segment: Staff Experience Best Vendor Predictor

Pharma participants felt that the best quality predictor of an outsourcing vendor was the experience of its staff. The vendor’s track record in the target geography and its staff turn-over rate also were viewed as valuable indicators.

20%

20%

20%

20%

20%

60%

80%

80%

60%

80%

40%

20%

20%

40%

20%Educational credentials

Proven track record in therapeutic

area

Tenure of their staff

Turn-over rates of their staff

Proven track record in the

geography

Experience of staff in relevant areas

Page 10: Pharma Clinical Affairs Excellence Research Summary

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Successful CRO has Local Office & Strong Management When considering a CRO for a device trial in an emerging market, two of the most critical traits to look for are 1) Experience in that region and preferably a local office there and 2) Strong management, both at its main office and at the local office in the market where you want to do a trial.

• The CRO should have a main office in your geography so you can

manage them, but CRO also needs to have office in emerging area

so they have local presence. “So they can do the local work but then

we can still drive our timelines and push from here. It’s hard to push a

CRO when you can’t get over to their office quickly – they’re too far

away.”

• The CRO has to have experience in the geographic region

• The CRO has to have people knowledgeable in the management side

of clinical trials and have strong local management as well. “If they

don’t have a strong manager in that local area that knows what it

takes to get clinical trials done, it’s not going to work.”

Don’t…

• Automatically assume a U.S. CRO has a presence in an emerging

market because they say they can work there. That may translate to

we’ll hire another, locally based CRO to do our work.

“We had a CRO running a global

project that did not include Japan

and China – it was a huge project.

That same company was also

helping us run a Japan trial. It was

night and day difference and it

was all because we had very good

management on the global project

and poor management on the

Japan trial.”

– Director, Global Clinical

CRO Dos and Don’ts

10

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Q. What are the three most valuable lessons learned or critical success factors to make clinical

affairs outsourcing work?

Pharma Segment: Critical Success Factors/Lessons Learned

Pharma: Critical Success Factors/ Lessons Learned

(n = 4)

Pharma participants felt the critical success factors behind successful clinical outsourcing were communication, a dedicated outsourcing group, appropriate oversight and established relationships.

Page 12: Pharma Clinical Affairs Excellence Research Summary

BEST PRACTICES,

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LLC

About Best Practices, LLC

Best Practices, LLC is a research and consulting firm that conducts

work based on the simple yet profound principle that organizations

can chart a course to superior economic performance by studying

the best business practices, operating tactics and winning

strategies of world-class companies.

Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517

919-403-0251

[email protected]

www.best-in-class.com