The Future of Clinical Service Provider-Sponsor Relationships - Pharmaceutical Technology

Latest Issue

Latest Issue
PharmTech Europe

The Future of Clinical Service Provider-Sponsor Relationships
The author analyzes the results of a survey that polled pharmaceutical executives and managers about both sides of the outsourcing relationship. Read this and other preferred organization articles in this special issue.

Pharmaceutical Technology
Volume 35, pp. s30-s41


Figure 1: Sponsor companies described changes that they are making to improve the efficiency of their outsourcing relationships (74 companies reporting). (ALL FIGURES ARE COURTESY OF THE AUTHOR)
Planned changes to outsourcing practices. When asked about the changes their companies anticipated making during the next five years to address the need for increased outsourcing efficiency, sponsors' responses fell into a few major categories (see Figure 1). First, the majority intended to consolidate more outsourced work within preferred-provider relationships, and most of these respondents also planned to reduce the total number of suppliers they used. Second, most respondents planned to improve the ways that they measured, shared information about, and managed the performance of their providers and the quality of their outsourcing relationships. Third, most respondents planned to use improved criteria for provider selection. Finally, several respondents planned to change their outsourcing models or to incorporate more risk-sharing clauses into their future contracts.

Figure 2: Provider companies described changes that they are making to improve the efficiency of their work with sponsors (88 companies reporting).
Providers reported the intention to make changes of a similar nature (see Figure 2). As was the case for sponsors, the majority of respondents planned to strive for long-term relationships, with an increased focus on repeat customers and preferred-provider relationships. Also like sponsors, most providers planned to focus increasingly on relationship-management programs (including customer feedback programs and performance measurement), and improved models for sharing information about outsourcing relationships.

The following sections will describe the detailed data that were obtained about several of these major trends.

Figure 3a: Approximate percentages of companies' clinical research outsourcing spend that went to preferred providers in 2009.
Consolidation of outsourcing relationships. As described, the majority of sponsors intended to consolidate more outsourced work within preferred-provider relationships. At the time of the survey, 69% of the sponsor companies represented reported having preferred-provider relationships, including 97% of the top 20 companies and 49% of other companies.

Figure 3b: Changes in clinical research outsourcing spend on preferred providers between 2007 and the present.
Within the group that engaged preferred providers, the extent to which outsourcing spending was allocated to preferred versus other providers varied widely. Forty-two percent of sponsor representatives stated that more than three-quarters of their clinical-research outsourcing spending went to preferred providers, while 36% reported this fraction to be less than half (see Figure 3). Seventy percent of respondents stated that the percentage of outsourcing spending allocated to preferred providers had increased since 2007.


blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
| Weekly

FDASIA was signed into law two years ago. Where has the most progress been made in implementation?
Reducing drug shortages
Breakthrough designations
Protecting the supply chain
Expedited reviews of drug submissions
More stakeholder involvement
Reducing drug shortages
Breakthrough designations
Protecting the supply chain
Expedited reviews of drug submissions
More stakeholder involvement
View Results
Eric Langerr Outsourcing Outlook Eric LangerRelationship-building at Top of Mind for Clients
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerRisk Reduction Top Driver for Biopharmaceutical Raw Material Development
Jill Wechsler Regulatory Watch Jill Wechsler Changes and Challenges for Generic Drugs
Faiz Kermaini Industry Insider Faiz KermainiNo Signs of a Slowdown in Mergers
From Generics to Supergenerics
CMOs and the Track-and-Trace Race: Are You Engaged Yet?
Ebola Outbreak Raises Ethical Issues
Better Comms Means a Fitter Future for Pharma, Part 2: Realizing the Benefits of Unified Communications
Better Comms Means a Fitter Future for Pharma, Part 1: Challenges and Changes
Source: Pharmaceutical Technology,
Click here