outsourcing: challenges and successes

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Outsourcing Challenges and Successes

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Factors to be considered when contracting out bioanalytical services to contract laboratories.

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Page 1: Outsourcing: challenges and successes

Outsourcing

Challenges and Successes

Page 2: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 2

Outline

BackgroundWhy would you contract out?What to contract out?Who should contract out?Laboratory selectionHow to manage itRoad to success

Page 3: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 3

Background

~50% of R&D expenditures is external<% early research, >% later stagesIn development small number of preferred partnersPre-clinical bioanalytical at 3 sites in EU. Internal ↔ external about 60:40Clinical bioanalytical at 2 sites in EU and 1 in US. Internal ↔ external about 10:90

Page 4: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 4

Global Bioanalytics11 People

2 Ph.D.3 M.Sc.5 Analysts1 Vacancy (academic lvl)

3 SitesNL: 100% contracting outFR: partly → 100% contracting outUS: routine work is contracted out

InvolvementCore business: PK sample analysisPD sample analysis (biomarkers)Metabolism in humans (ADME)DNA sample analysis (genotyping)Central lab activities

Page 5: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 5

Why contract outBecause your boss tells you toCorporate strategy

Science in houseOperational external

Flexible workforceCope with peaks in workloadNobody needs to get laid off in slow periods

Excess or shortage of moneyR&D expenditures as % of sales

Design your contracting out strategy on corporate goals

Page 6: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 6

Why contract outImprovement of deliverables

Better then own labsBetter equippedGLP compliantMore experienced employees

Faster then own labsLarger workforceMore instrumentsHarder working

Specific expertise

Be honest and realistic: your own lab is not the best in the world

Page 7: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 7

Why contract outOther

Flying to work is more fun then drivingBlame the failures on somebody elseHelping friends/ex-colleagues setting up their own businessKeep the interesting parts you like and get rid of the boring stuffYou like doing business better then running samples Managing projects rather then managing people

Yes it is also fun

Page 8: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 8

What to contract outStrategy

Type by type(analyte by analyte)

Study by studySpecies by speciesPhase by phaseProject by project

Full packagePartnership

Your choice of lab and how to do it should depend on what you need to contract out

Page 9: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 9

What to contract outAspects

MethodsTransfer of sponsor method (+validation)Development (+validation)

Stability studiesAs part of validationLong term, special conditions

Chemical synthesis(Internal) standardsMetabolites

What can you deliver, what are you willing to pay for and trust to others

Page 10: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 10

What to contract outAspects

TroubleshootingStabilitySelectivity/specificity

Sample analysisOnly (very) large studiesOnly non-proprietary assaysEverything

How far do you want to go

Page 11: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 11

Who should contract outTechnical / scientific focus: BioanalystsOutcome focus: CliniciansTimelines focus: Project managersFinancial focus: BU / contracting out

ConsultantContract partner

If you are not in the drivers seat you can not take responsibility

Page 12: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 12

Who should contract out?

Content ↔ Goals ↔ Timelines ↔ Costs

In the end (=during submission) it is only the quality (technical, scientific, GLP,

regulatory) of the work that counts.

Bioanalytical !

Page 13: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 13

Who should contract outBioanalytical:

Head of department or groupScientists / study directorsDedicated person(s)Whoever has time

Key competencies: well experienced bioanalyst, cultural awareness, customer awareness, integrity, interpersonal sensitivity, communicator, decider, persuasiveness

Page 14: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 14

Contract lab selection

Page 15: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 15

Contract lab selection

Page 16: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 16

Contract lab selectionLocation

Close to home or close to clinicNear airportNear major cityNear university /science parkSame countrySame continent

At least: good communication & reliable and timely sample shipments

Page 17: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 17

Contract lab selectionTechnical

Number (type) of LC-MS/MS systemsOther: immuno assay, GC-MS, LC-xyQuality system - GLPNon proprietary assaysBiomarker panelsBA = core business or …Tox or Clin BA labSize & new/old building

Go there to have a look (include QA)

Page 18: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 18

Contract lab selectionPeople & skills

Number of peopleStrictly hierarchical or breederAcademics or seasoned lab techiesWizards or ‘work horses’Serious & formal orgood for a laugh

You need some chemistry

Page 19: Outsourcing: challenges and successes

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Contract lab selectionPeople & relationships

Like or dislikeTrust or distrustRespectHonestyCommunicationLanguage skillsCorporate & national culture

Trust is a crucial factor in contracting out

Page 20: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 20

Contract lab selectionCulture

Yes means yes (or no?)Loosing faceFeminine ↔ masculineLevels of communication‘corruption’

(strictly) adhere to the lawrelationships are more important then the law

http://www.geert-hofstede.com/

Page 21: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 21

Contract lab selectionCosts

Per sample (including QCs & cals)Per study / validation‘paper’

Protocol, reportArchivingProject management

‘other’Sample handlingSample storageRepeats

Do not forget your own costs: monitoring, travel, shipments

Page 22: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 22

Contract lab selectionQuality

GLPCSVBMVQAQC

Do not forget thescience

Page 23: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 23

Contract lab selectionOther

Met at a symposium / exhibitionKnow the guy/gall (friend)Friend of a friendFriend of your boss (dangerous!)Recommended by othersSame universitySpecific equipmentNational regulationsGood looking website

Page 24: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 24

How to manage it

do not overdo it

Page 25: Outsourcing: challenges and successes

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How to manage it

and this might be a bit too relaxed

Page 26: Outsourcing: challenges and successes

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How to manage itSecrecy AgreementMaster Service AgreementOutline / work order / scope of workQuotation / contractQA visitsProtocol / study planTeleconferencesMonitoring visitsControl samples / cross lab COMMUNICATE

Be and stay in contact and build a relationship

Page 27: Outsourcing: challenges and successes

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How to manage itHuman factors

Human errorAdmitting mistakesBe forgivingBe honestRealize that they may

Dislike youLove your projectsHate your QAFind you over demanding

Socialize: diner, drinks, photo’s

Page 28: Outsourcing: challenges and successes

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Road to success

Know WHY you want to contract outDecide WHAT you want to contract outPick the right persons to do and manage itSelect one or more candidate laboratories based upon your criteriaNew lab(s)? Start small & go thereKnown lab(s)? Pick up the phone (or e-mail)

Page 29: Outsourcing: challenges and successes

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Road to success

Do all the required paper workSupply relevant information, materials, etcBe honest, open and frankBuild and maintain a relationshipAppreciate good workCOMMUNICATE

Page 30: Outsourcing: challenges and successes

21-Feb-2008 PvA - Bioanalysis in Clinical Research: Contracting Out 30

AcknowledgementsGlobal Bioanalytics

Brian BissellOdylle BrockhoffLéonarda BrunetKoos DroogerCaroline DurandLeonie LeferinkJosé MarengoTanya MyersLydie RossyeTony Testino

Contract labs● ● ● ● ● ● ● ● ● &●

[email protected]