Wednesday, December 28, 2016

What is the typical partnership in the 21st century?

Traditionally clinical trials were conducted in-house by pharmaceutical companies. The pressure of market and economic forces combined with the dynamic changes in clinical trial demographics and the increasing complexity of conducting trials has lead sponsors (pharmaceutical, biotech and medical device manufacturers) to outsource clinical trials to Contract Research Organizations (CROs).

At the onset a partnership between a Sponsor and a CRO meant that the sponsor outsourced the drug development to the CRO and provided them with the experimental drug as well as medical oversight. The CRO carried out all the administrative work on a clinical trial, recruited and trained participating researchers, co-ordinated the study process, provided study material and the drug being studied, collected data from various study sites and ensured that the researchers complied with clinical protocols.

In the 21st century partnerships have evolved from transactional, tactical, ‘fee-for-service’ arrangements with price as a dominating factor, to strategic partnerships where both profits and risks are shared, and core competence is the dominant factor. Strategic partnerships entail larger amount of work commitment, longer timelines, broader scopes and building infrastructure to support the entire product development cycle.

The above excerpt is from our recent whitepaper "Are Strategic Partnerships in Clinical Trials Living Up to What They Promised?". This paper describes how and why strategic partnerships are developing in the 21st century, elaborates on the reasons behind current trends, the pros and cons of the partnerships, impact of partnerships on drug development, ensuring the success of partnerships and future trends. Access the complete whitepaper here.

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