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Similaire à Pharmaceutical Best Practices: R&D Strategic Partnerships (20)
Pharmaceutical Best Practices: R&D Strategic Partnerships
- 1. Nintai Partners
Copyright © All Rights Reserved 2012
Strategic Partnerships & Communication:
A Report Card
Thomas Macpherson
June 5th, 2012
- 2. Nintai Partners
Copyright © All Rights Reserved 2012
Agenda For Today
I. Opening Remarks and Agenda
II. The Main Issues Facing Pharmaceuticals Today
A. Increased IRR/Productivity in Research & Development
B. Creating Agile Systems Utilizing Increased Availability of Informatics
C. Creating New Risk/Reward Models with CRO Partners
II. Communication in CRO/Pharmaceutical Strategic Partnerships
A. It Isn’t Just About Data or Communications….But About Communicating Data
1. Client Comments
B. Knowledge is Power…Therefore Data Communicators are Power Brokers
1. Client Comments
C. Data/Informatics Help In Cuts…But Are Even More Important For Growth
1. Client Comments
III. Report Card: Strategic Partnerships and Communications
IV. Questions and Comments
- 3. Nintai Partners
Copyright © All Rights Reserved 2012
The Big Three Imponderables:A (Very) High Fly Over
No
industry
has
survived
by
con2nually
cu4ng
their
way
to
survival.
The
ul2mate
long
term
health
of
the
industry
will
be
driven
by
sustainable
and
profitable
growth.
To
achieve
this,
R&D
will
need
to
increase
produc2vity
&
IRR.
New
rela2onships
will
need
to
be
created
–
with
incen2ves
for
both
cost
savings
and
corporate
growth.
These
rela2onships
will
require
more
flexible
and
integrated
business
models.
The industry has never been a leader
in the use of informatics, technology,
and integrated data platforms.The
increasing digitization of data at all
levels (EDC, EMRs, eCTD) is going to
fundamentally change the way we
make decisions.
- 4. Nintai Partners
Copyright © All Rights Reserved 2012
Some Context: Major Strategic Issues Facing Life Sciences
We Can’t Cut Our Way Out Of This
Managements recognize it isn’t about just cost cutting anymore. Internal research teams are stretched to
the maximum and budgets have been pared to their lowest possible levels.The future success of drug
discovery is no longer about outsourcing and slashing fixed costs. Management is demanding leaner
organizations, more efficiency, and greater productivity from its R&D teams. In short….it’s about drug
discovery again.
“Our teams have been downsized, streamlined, and outsourced as much as possible. We
have removed assets from the balance sheet, costs from the income statement, and
reduced burn rates from the cash flow statement. In the final analysis, we will be saved
by increased productivity, innovative research, and outstanding use of informatics. My
performance will be ultimately measured by how much I grew the company, not how
much I outsourced or divested”.
- C-Level Manager, Merck
“When I look out our organization, there really isn’t any more “fat” to cut. Regardless of whatWall Street analysts
say, mergers and acquisitions, finding synergies and reducing redundancies and outsourcing fixed costs will not get
the company many new molecules to market.The bottom line is we need to create organizations that find
innovative ways to increase productivity, IRR in research & development, and quicker/better informed decision
making.Then and ONLY then will we start to turn this thing around”.
- Board Member,AstraZeneca
- 5. Nintai Partners
Copyright © All Rights Reserved 2012
Risk Mitigation Through Innovative Partnerships
Many of the management we have gotten to know frequently talk about mitigating or reducing risk. In
drug discovery and development outsourcing, this generally means creating contracts that reduce the
risk of project failure or with penalty clauses for poor performance.We have found the most powerful
relationships are where CROs and their sponsors are incentivized through out the process.An example
of this is creating incentives to not only prevent failure, but to also to mitigate the risk of lost
opportunity.
“I want my CRO to be a real partner – someone who is paid to bring value in everything they do.This includes
incentives for not just producing good data, but producing good decision making, good data evaluation processes,
and outcomes produced by both. I want our CRO to be equally happy for helping me kill an
unsuccessful project quickly as they are for moving one forward slowly. I want our CRO
to to reduce the risk of a bad research outcome, but I also want them to make sure we
reduce the risk of missed opportunities. While these seem the same, they are actually
quite unique with very different audiences”.
- GSK
“So far we’ve used our CROs to cut costs. I’d like to see incentives for creating real growth. Our team recognizes
that traditional outsourcing is no longer a valid policy or budget option. Our Board wants to know how we intend
to ally ourselves with organizations finding innovative ways to discover and launch new products. While novel for
us, I think it’s only a matter of time until we in-source back some functionality and utilize third party vendors as
growth drivers”.
- BI
Some Context: Major Strategic Issues Facing Life Sciences
- 6. Nintai Partners
Copyright © All Rights Reserved 2012
Some Context: Major Strategic Issues Facing Life Sciences
Agile Informatics Are Changing The Research & Development Field
Life sciences has rarely done a great job with technology, and now the explosion in clinical
informatics has forced it to evaluate its entire business model – from office-based reps to
outsourced clinical development.The winners of this new model will be pharmaceuticals with the
vision and strategy to make informatics as the predominant tool in research.
“Some of our CRO partners understand the power of a fully integrated clinical research informatics platform.
Everything from assays to personalized medicine are going to directly – and totally – changed by this.The ability
to think quickly and act decisively will one of the most important attributes of a senior manager.The challenge
will be creating a system that can sort through all this data and provide warning signs and decision making tools
in a nearly real-time environment”.
- Baxter
“The development of clinical informatics has been a double edged sword. On one side is
the ability to see data from across the clinical spectrum, the integration of enormous
sums into an accessible format, and the ability to frame decisions with data support we
could not have imagined 20 years ago. Conversely, it has created an explosion of data
that – without real controls – can lead many a manager down a garden path of
enormous cost with absolutely no chance of success.The ultimate success of this movement will be
measured in drug development, product launches, and diseases treated”.
- Hoffman
- 8. Nintai Partners
Copyright © All Rights Reserved 2012
Main Themes
It Isn’t Just About Data or Communication….But About Communicating Data
One thing we have learned over time is that good data is never reported, but communicated.
Good data should tell a story, both to the person collecting it and to the person analyzing it. Far
to many organizations have a remarkable amount of data that is reported, but that in reality
communicates nothing.
If Knowledge is Power…Then Data Facilitators are Power Brokers
Far too often the role of data or informatics is seen as an information technology issue –
something to be sliced, diced, and spit out with little or no forethought.We couldn’t disagree
more. Informatics is the life blood of clinical research and should be treated as such. For those of
you sitting here today as data facilitators, the world has never looked so good.
Data/Informatics Help In Cuts…But Is Even More Important For Growth
You can go about the process of achieving operational efficiencies, cost cutting, and budget
reductions without good data. But you will NEVER achieve reasonable sustained growth without
quality data and informatics. A Japanese proverb once said that a man with his eyes closed can
cut any person’s arm off, but it takes the most enlightened and wide open eyes to sew it back on.
- 9. Nintai Partners
Copyright © All Rights Reserved 2012
Data Performance: It Really Does Matter
Data Performance – Right Person, Right Data, Right Time
The ability to make timely decisions is based on the collection, distribution, and presentation of the
relevant data. Ultimately, this should increase the possibility of meeting deadline goals, reduce
project costs, and speed up the ultimate go/no go decision process. Many of our clients have no
way to identify, measure, and fix this process.
As companies moved to a more integrated data reporting system, satisfaction increased dramatically as well as
confidence in the decision making process.This was reflected in an average 17% reduction in change orders and 7%
reduction in sponsor project oversight hours – a saving estimated at roughly $2.3 million per project or 2.8% of the
total project budget.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Right Person
Right Data
Right Time
19%
5%
41%
62%
24%
82%
Top
10%
Lowest
10%
- 10. Nintai Partners
Copyright © All Rights Reserved 2012
Data Performance: It Really Does Matter
“Communicating data is one of the more important things our CRO partners do. If we don’t get the right
data to the right person at the right time we put our entire research program at risk. Important as this
may be, we have found our (CRO) partners have actually done a relatively poor job creating a process to
achieve better results”.
- AstraZeneca
“One particular failure of our partner has been in communicating data back to
our internal teams. This isn’t necessarily all their fault – for instance we have
NEVER done a very good job using data to make decisions. Most of the time data
is an excuse to put off decisions. But part of the failure of our partner has been
the inability to take into account our issues and designing a reporting system to
meet that. There really isn’t a cookie cutter solution to this”.
- Pfizer
“We have been working at this for probably over a decade now.We struggle with the fact that too much
data has a tendency to distract us or paralyze us into not making ANY decision.When I first met with our
partner, I tried to discuss this but I think it fell on deaf ears. My company’s needs are different than our
competitor and they need to create a customized way to deal with that”.
- Takeda
- 11. Nintai Partners
Copyright © All Rights Reserved 2012
Date Performance:Timely Decision Making
Decision Turn Around Time – Was It Timely?
In a clear majority of our clients, strategic partnerships led to a significant drop in the ability to
make timely decisions.The inability to do this can lead to significant costs downstream as
timelines slip, management makes hasty (and poorly researched) decisions, and the project critical
path is put at risk.
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Delay: <2 Days
Delay: >2 Days <5
Days
Delay >5 Days <10
Days
Delay > 10 Days
$23
$23
$23
$23
$28
$32
$77
$169
Ini2al
Es2mate
Final
Cost
It is clear poor communication delays projects and impacts budgets.What became very clear is overrun costs
due to decision making delays grows exponentially – from 23% in the beginning to over 600% when delays go
on more than 10 days.
- 13. Nintai Partners
Copyright © All Rights Reserved 2012
Data and Decision Making: Getting It Right
Accuracy in Decision Making – Did It Help Us Get It Right?
Making timely decisions is only part of the solution. A quick decision with bad data is
just as bad – if not worse - than no decision at all. Communicating data in the format
necessary for an informed evaluation is critical to success.Yet all too often we see reports and
data delivered in such ways to be wholly useless to the sponsor. If the data cannot assist in
making a decision, it in likelihood should never have been delivered.
0%
20%
40%
60%
80%
Data
Was
Adequate
Data
Was
Inadequate
68%
32%
3%
11%
12%
62%
12%
Data Is Unreadable (Format)
Data Is Off
Topic
Incorrect
(Bad) Data
Insufficient
Data
Too Much
Data
A total of 17 companies participated in the survey which took place in January, 2012. 84 individuals participated in the survey with internal
clinical, IS, informatics, data management, and senior management making up the major areas of practice.
- 14. Nintai Partners
Copyright © All Rights Reserved 2012
“When we design our informatic reporting system, the first thing I tell our
partners is “if the information cannot help me make a determined and educated
decision, then don’t send it”. Yet even after all this I will frequently still see data
which arrives in forms or structure that provide little or no value to me as a
sponsor”.
- Biogen Idec
“I’m not sure anybody outside of our business would believe the amount of information that can flow
across my desk over the course of a work week.The challenge for anyone in my position is finding the
data that can assist me in making what can be sometimes very difficult decisions. I just wish sometimes
our CRO partners could sit in my shoes and try to make decisions after they’ve sent me this 10 gig folder
of data”.
- sanofi
“I need every advantage I can get when I have to review my budget with the higher ups. I tell my CROs
that this is as important to them as it is for me”.
- Novartis
Data and Decision Making: Getting It Right
- 15. Nintai Partners
Copyright © All Rights Reserved 2012
Strategic Partnerships and Communication: A Report Card
Communicating Data:The Right Person,The Right Data,
The Right Time
Communicating Data:Timely Decision Making
Communicating Data: Getting The Decision Right
Clear Communication: Integrating Platforms
Clear Communication: Managing Up and Down
Clear Communication: Mapping To Objectives/Goals
A total of 18 pharmaceutical and
biotechnology companies were
interviewed.A total of 84 individuals
completed the survey over the period of
January – February, 2012.
B-‐
B+
C
D+
D
B+
Grade
Trend