KMR Group, a leader in biopharmaceutical R&D performance analytics, completed the first of its kind industry analysis on the comprehensive cost of clinical trials with a group of leading biopharma companies.
The Clinical Trial Cost Study sets industry benchmarks, identifies statistically significant cost drivers and evaluates trial cost efficiency.
As the cost of clinical trials continue to rise, the need for comprehensive cost performance data which accounts for both internal and external cost types has never been greater. With various methodologies for tracking and reporting cost, there has not been a comparable source for evaluating industry trial cost performance. As a primary objective of KMR Group’s Clinical Trial Cost Study, the analysis helps biopharma companies determine how much any given trial costs using a robust and systematic framework.
Understanding the total costs of trials is only the first step in analysing and assessing company performance. While any given company may tend to run more expensive trials, it is critical to understand why and how this can be improved. The KMR Group Study identifies statistically significant cost drivers which help explain the disparities across trials, prompting useful discussions and questions about trial design and operational plans.
Another critical analysis performed as part of the Clinical Trial Cost Study focused on operational cost efficiency; helping companies address the question of whether their trials are more expensive than their peers when taking into account factors such as study size and disease. Once trials are normalized for these factors, companies can begin to assess those levers that drive cost in terms of how their own protocol design and trial execution choices as well as cycle time is impacting their efficiency.
Trial costs comprised personnel, outsourcing, expenses and grants, additionally taking into consideration a variety of factors, such as company size, volume (subjects, sites, subject visits), strategic focus, resource strategy, geographic deployment and trial design. Any combination of cost types and cost factors can be assessed in an online application available to participants.
The analysis helps companies gain insight into how expensive their trials are relative to peers as well as how efficient they are in executing their clinical trials in terms of cost. It helps companies identify areas of strength and weakness at a phase and therapeutic level. Importantly, the study helps to quantify cost savings based on improved industry efficiencies, cycle times and study design considerations (study size).
The study’s methodology, which includes comprehensive clinical trials costs accounting for personnel, outsourcing, grants and expenses is what makes this particular analysis invaluable. “KMR Group’s Clinical Trial Cost methodology is impressive since it corrects for deficiencies in how companies track costs to trials. We apply rigorous standards to data collection at both trial and cost levels to ensure quality and confidence in the results,” commented Linda Martin, KMR Group President and Founder.