A Compelling Need to Usher in Alliances - Applied Clinical Trials

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A Compelling Need to Usher in Alliances


Applied Clinical Trials


Sponsor/CRO–site alliances

Attributes of sponsor/CRO–site alliances are analogous to those described in sponsor–CRO alliances. Instead of having to select many individual investigative sites based on each study's requirements every time clinical testing is about to begin, a select number of investigative sites are identified and engaged, in advance, based on the needs of the sponsors or CRO's portfolio of clinical trials. Selection of investigative sites will be intensive, but it will lead to the establishment of long-term recurring sponsor/CRO–site alliances.

In alliance relationships, sponsors and CROs do away with ad hoc budgets and contracts. Instead, each year investigative sites renew a longer-term contract and negotiate a budget based on the portfolio of expected annual clinical studies. In order to ensure that sites allocate the best resources for alliance-based projects, sponsors and CROs will likely need to guarantee a certain amount of annual work.

Whereas most communication between sponsors/CROs and investigative sites can be sporadic, in alliance relationships it is critical that communication be seamless, bi-directional, and integrated. Eclinical technology solutions are critical infrastructure elements supporting sponsor/CRO–site alliances.

Another critical infrastructure element that sponsors and CROs must provide their alliance partners is centralized, proactive support resources to assist their investigative sites in patient recruitment and retention activity, regulatory compliance (e.g., filings, reporting) and operational efficiency (e.g., financial controls, facility management). Traditionally, sponsors and CROs have provided support to their investigative sites in a reactive and fragmented fashion.

Similar to sponsor–CRO alliances, governance and conflict resolution between sponsors/CROs and sites is a shared responsibility where both parties contribute dedicated and senior staff to oversee the portfolio of projects.

Implications

Sponsors expect to always be managing a mix of relationship structures that includes alliances and task-oriented, project-based relationships. However, sponsors anticipate that alliances will become far more prevalent during the next three to five years.

Although alliances will not likely result in lowest bid providers, in theory, efficiencies gained in study start-up, ongoing project communication and close-out; minimization of out-of-scope costs; and centrally supported performance improvements should far surpass short-term cost savings.

Service providers striving to establish alliances will need to possess a strong willingness to share the economic risk of supporting fewer sponsors and the operational risk of accepting greater accountability and responsiveness for communicating and resolving problems. With higher assumed risk comes higher upside for service providers, which may include performance and commercialization incentives.

Alliances will also need to establish operating policies to support greater transparency and open communication and dedicated staff familiar with and motivated to make alliances work. Lastly, they will require integrated and compatible communication, management, and support systems.

For those service providers who are not suited to enter—or choose not to enter—alliances, there are strategic opportunities to meet the specialization needs of these emerging relationship structures.

Alliance fever is here. It represents a positive step in the evolution of more effective collaborations facilitated by the current economic climate.

Kenneth A. Getz MBA, is a Senior Research Fellow at the Tufts CSDD and Chairman of CISCRP, both in Boston, MA, email:


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