Sourcing Comparator Drugs
Pharmaceutical organizations
support Comparator requirements
differently. To a large extent
these differences are driven by
availability and experience of
their internal resources.
Sourcing Comparator Drugs
One common denominator remains
the same for all of us and that is the
overall complexity and challenge of
securing an uninterrupted supply of
clinical drug requirements continues
to become more demanding.
Some Challenges Associated With Purchasing Comparator Drugs
• Regulatory requirements – FDA, EMA, MHRA, etc.
• Changes in the Pharmaceutical Industry– mergers and acquisitions
• Work force compression • Import/export requirements • Individual drug requirements
– storage and handling conditions
• Spiraling cost of drugs• Uncertainty surrounding health care reform
All Eyes on Savings
Reducing waste and minimizing loss are part of productivity initiatives that many companies have put in place
In their own right these programs have contributed savings but have also created a secondary hurdle to overcome: a JIT inventory scenario.
No Room For Error
The lead time from the
purchase of a Comparator Drug
through blinding and into the
Clinical sites has almost
eliminated any room for error in
a process that has ample
opportunity for things to go
wrong
Unlocking Opportunities to Reduce Overall Cost of Comparator Drug
• EARLY INVOLVEMENT IS ESSENTIAL
• We work closely with key decision makers from the beginning to understand requirements and implement strategies
Comparator Drug Procurement Strategies
Direct to Innovator
Low CostMarket
GenericAlternative
Comparator/Placebo
Consolidation
MarketConsolidation
• There are several paths we can take to reduce cost and drive savings
• Purchasing the product direct from the innovator can significantly reduce cost
But…
• Competitors are not always willing
Direct to Innovator
Low CostMarket
GenericAlternative
Comparator/Placebo
Consolidation
MarketConsolidation
Comparator Drug Procurement Strategies
• Sometimes product can be purchased in low cost regions
• If supporting documentation can be obtained
Direct to Innovator
GenericAlternative
Comparator/Placebo
Consolidation
MarketConsolidation
Comparator Drug Procurement Strategies
Low Cost Market
• Generic alternatives are an easy way to reduce cost if available
Comparator Drug Procurement Strategies
Direct to Innovator
Low CostMarket
Comparator/Placebo
Consolidation
MarketConsolidation
Generic Alternative
• Consolidating the comparator and placebo from a single source can provide cost reduction, and a number of synergies
• A recent opportunity secured a >60% cost reduction (more than $6MM)
Comparator Drug Procurement Strategies
Direct to Innovator
Low CostMarket
GenericAlternative
MarketConsolidation
Comparator/Placebo
Consolidation
• Consolidated sourcing in South Korea allowed for significant cost reduction, and a number of other synergies
Comparator Drug Procurement Strategies
Direct to Innovator
Low CostMarket
GenericAlternative
Comparator/Placebo
Consolidation
Market Consolidation
Comparator Drug Procurement Strategies
Direct to Innovator
Low CostMarket
GenericAlternative
Comparator/Placebo
Consolidation
MarketConsolidation
All of these can be effective strategies to reduce costs
.. But we do not implement these alone
Supplier Relationship Management
We work closely with our key suppliers to develop a long term coordinated approach.
– Individual competencies
– Global reach
– Integrity
– Financial stability
– Potential for Growth
THANK YOU
QUESTIONS?
