SUCCESS STORY
20% Lower CRO Costs
Sourcing Process & Negotiation: Mid-Sized Pharma Company
- Optimising CRO selection, pricing, and commercial outcomes
Outcomes
We achieved a 20% reduction
in direct fees versus the original bid for the Phase II Study through the removal of unnecessary tasks, rate reduction, effort consolidation and bottom-line discount.
For the Phase III Studies
all CRO cost proposals were within the price range estimated via the“should-cost” process, enabling better planning.
The Phase III Studies RFP
was praised by one global CRO as the “best they have seen all year”and enabled a fair comparison across suppliers.
Upfront activities on scope enabled
a more robust contract and reduced cost and scope creep, expected to deliver ~15% savings.
BACKGROUND
Working with a mid-sized specialist pharma company to negotiate a full service CRO scope and costs across three pivotal Phase II and III studies.
the challenge
- Prior to partnering, the client’s Phase II CRO selection had inconsistent needs communication and solution gathering.
- Process lacked procurement support for a proposed CRO known for performance issues and premium rates.
- The CRO expected further Phase III awards despite lacking pricing transparency or collaborative behaviours.
SOLUTION
- Developed a Phase II negotiation strategy by reverse engineering unit costs and comparing industry benchmark rates.
- Led negotiation discussions as an integral part of the client team, briefing them on the process.
- Implemented robust Phase III vendor selection, placing the CRO in a competitive environment with “should-cost” estimates.