Strategies for Preferred-Provider Partnerships - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Strategies for Preferred-Provider Partnerships
The author examines recent examples of preferred-provider collaborations.


Pharmaceutical Technology
Volume 36, Issue 2, pp. s6-s12

As pharmaceutical companies increase their level of outsourcing, the models for partnering ar evolving. Preferred-provider relationship are highly collaborative and strategic partnerships between pharmaceutical companies and select CROs, CDMOs, and CMOs. The author examines recent examples of such collaborations.


Kutay Tanir/ Photodisc /Getty Images
Facing pressure to improve timelines in drug development and reduce costs in drug development and commercialization, the pharmaceutical majors are increasing their level of external development and manufacturing. At the same time, they are looking to manage these external relationships more efficiently and cost-effectively. The result is the preferred-provider relationship in outsourcing. Unlike simple transactional or fee-for-service outsourcing, preferred-provider relationships represent a deeper, more collaborative, and enhanced strategic partnership between sponsor companies and their third-party providers and satisfy an interest by pharmaceutical companies to work with fewer suppliers. During the past several years, select pharmaceutical majors have entered into preferred-provider relationships, particularly with CROs, although manufacturing-based relationships also have been formed.

Big Pharma partners

Pfizer. In May 2011, Pfizer formed strategic partnerships with the CROs Icon and Parexel, both of which will serve as strategic providers of clinical-trial implementation services over a five-year period beginning in June 2011. The new partnerships will be fully implemented over an 18-to-24 month period.

In announcing the collaborations with Icon and Parexel, Pfizer said that the two-partner model will simplify its processes by reducing the number of external service providers that the company uses for clinical-trial execution. Pfizer says this new strategic partnership model does not substantially change the proportion of clinical-trial implementation services that the company outsources. Pfizer is retaining scientific ownership of the clinical-development process and is maintaining oversight and quality standards relating to patient safety and regulatory compliance.

"We've also [have] taken a look at the value chain inside our research organization and have outsourced a lot of our clinical work with a strategic partnership with Icon and Parexel," said Ian Read, chairman and CEO at Pfizer at the JPMorgan Healthcare Conference, which was held in January 2012 (1). "I think that's a major strategy for us. We've rationalized our efforts there. Before we were dealing with 18, 19, 20 plus partners. It was very difficult to control. It was very difficult to get quality work and get savings. We now have a strategic partnership with two global players."


Table I: Publicly announced preferred-provider deals.
Bristol-Myers Squibb. Pfizer's partnership with Icon and Parexel followed an earlier partnership made by Bristol-Myers Squibb with Icon and Parexl. In June 2010, Bristol-Myers Squibb signed three-year agreements with Icon and Parexel for joint strategic, operational, and capability support of Bristol-Myers Squibb's clinical-development program. In August 2011, Bristol-Myers Squibb selected Icon as a preferred provider for full-service clinical pharmacology and exploratory clinical studies

Bristol-Myers Squibb has since followed with other preferred-provider arrangements. In March 2011, Bristol-Myers Squibb and the CRO WuXi AppTec formed a strategic partnership for stability studies of small-molecule new chemical entities. Under the agreement, WuXi will build, equip, and operate a dedicated, fully cGMP-compliant 25,000-ft2 analytical testing facility in Shanghai to store and test stability samples and to perform other services for Bristol-Myers Squibb. WuXi also will employ a dedicated staff for stability testing, sample management, analytical testing, pharmaceutical science, quality assurance, metrology, and other services, including stability-data reporting in support of all global dossier submissions by Bristol-Myers Squibb.

Bristol-Myers Squibb also had adopted a facility component in its preferred-provider relationship with Syngene International, a subsidiary of the Indian biotechnology company Biocon. In March 2009, Syngene opened a fully dedicated R&D facility for Bristol-Myers Squibb in Bangalore, India. The 200,000-ft2 facility is focused on discovery and early-drug development. Construction on the facility began in March 2007 when Bristol-Myers Squibb and Biocon entered into an agreement to develop integrated drug-discovery and development capabilities at Syngene.


ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

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

Survey
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
29%
Breakthrough designations
8%
Protecting the supply chain
42%
Expedited reviews of drug submissions
8%
More stakeholder involvement
13%
View Results
Jim Miller Outsourcing Outlook Jim Miller Health Systems Raise the Bar on Reimbursing New Drugs
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerThe Mainstreaming of Continuous Flow API Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler Industry Seeks Clearer Standards for Track and Trace
Siegfried Schmitt Ask the Expert Siegfried SchmittData Integrity
Sandoz Wins Biosimilar Filing Race
NIH Translational Research Partnership Yields Promising Therapy
Clusters set to benefit from improved funding climate but IP rights are even more critical
Supplier Audit Program Marks Progress
FDA, Drug Companies Struggle with Compassionate Use Requests
Source: Pharmaceutical Technology,
Click here