Clinical Outsourcing Sponsors Forcing Market Change

This Life Science Insights study examines the shift in sponsor sentiment away from engaging contract research organizations (CROs) for end-to-end contract research services toward a best-of-breed, selective sourcing approach. Pharmaceutical and biotechnology companies are increasingly calling on a wider variety of service providers to prepare bids for outsourcing preclinical and clinical research processes. Some, such as Wyeth and Pfizer, recently declared that they seek a new mix of providers because they are not getting what they want out of the megacontract arrangements they currently have with CROs. Although they won't completely divest themselves of CROs, they expect to decrease the amount of contracts awarded to CROs and phase out existing contracts when they expire.

"This new approach marks the next evolution of the contract research market," said Ellen Julian, research director responsible for Life Science Insights clinical outsourcing research. "The shift away from megacontracts represents a call to action for CROs. Over the next several years, sponsors will reevaluate their mix of service providers and CROs will be selected based on their leadership in distinct therapeutic, service, and technology categories."