A Case Study:
Objectives: When the sponsor, a biopharmaceutical company, was preparing for a phase 1 clinical trial in oncology, they knew that budget control and cost management would be key to the success of the trial. They turned to PHARALL, a group purchasing organization with a reputation for helping companies negotiate better prices and terms from contract research organizations (CROs).
SOLUTIONS: PHARALL’s team of experts worked closely with the sponsor and the CRO to implement a budget-controlling process that was easy to handle yet robust enough to identify potential issues that could lead to cost overruns. This proactive approach paid off immediately, as the sponsor was able to avoid an increase in costs of a mid-six-figure amount at the study initiation phase.
But PHARALL’s assistance didn’t stop there. Throughout the trial, the sponsor was able to closely monitor the monthly services provided by the CRO and identify potential cost overruns before the CRO was even aware of the issue. This allowed the sponsor to take action to mitigate the potential overruns and keep the costs of the trial within the signed budget.
As a member of the PHARALL Alliance, the sponsor also had access to in-house training on how to efficiently manage CROs and identify potential cost overruns. This proved invaluable, as the sponsor was able to successfully avoid unnecessary CRO cost increases thanks to PHARALL’s budget-controlling process.
OUTCOME: According to the sponsor’s CFO, “PHARALL was pivotal for our most important trial to avoid CRO cost overruns and to negotiate and reduce the amount of CRO change orders. That alone saved us a 7-figure amount representing 20% of CRO fees. In addition, their efficient budget controlling successfully helped contain CRO cost increases in a mid-six-figure amount.The investment in the collaboration with PHARALL paid off immediately and could be directly measured by realized cost savings through discounts and successful negotiations.”
In the end, PHARALL’s assistance in budget controlling and cost management helped the sponsor avoid unexpected CRO change orders and cost overruns in their clinical trial. By implementing a robust yet easy-to-handle process for monitoring CRO services, the sponsor was able to successfully keep costs within the signed budget and achieve cost savings through discounts and successful negotiations. If you’re a biopharmaceutical company looking to streamline your clinical trial purchasing process and negotiate better prices and terms from CROs, consider joining the PHARALL Alliance.
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