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BioPharm March eBook - Outsourcing Resources

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10 BioPharm International eBook March 2018 www.biopharminternational.com Outsourcing Resources Complete Response Letters The CRO is really only account- able to the terms and conditions spelled out in your contract with them. So if you don't understand the ins and outs of all that, you're just setting yourself up for further disappointment and risk, if and when things go wrong. The real challenge is, once you're in this predicament, what can you do? Assuming you cannot start over, what can be done to limit your risk and liability from today forward? That is all about doing increased oversight, increased test- ing on your end, etc. So, as a simple example, instead of simply reviewing the clinical research associate's trip reports, start doing more cooperative monitor- ing visits. Instead of waiting for the CMO to tell you about prob- lems—or discovering them after the fact—put a temporary point person, a 'person-in-the-plant' to get you through the remaining batches to limit problems and issues. H i r e a t h i rd pa r t y to do a detailed assessment of the CMO— and give you a list of 'here's what you as the contract owner/sponsor should do' recommendations. You already know that you have prob- lems with the supplier. You want a third party to give you insight and advice into what you should do—not what the sup- plier needs to fix, because the sup- plier may simply ignore it, and leave you holding the bag. IMPACT ON PROJECT COSTS AND TIMELINES B i o Ph a r m : W hat i mpac t i s t he increase in CRLs having on drug development costs and timeframes, and on the industry in general? Ave llanet (Cerullean Associates): I'm not sure that anyone has a firm grasp on this, because it really depends on the variables involved in the specific case. What I see and hear around the United States and in Europe is that people are getting soured on using just one CRO to run their trials. My larger clients, for example, are shift- ing to a model in which they use multiple CROs on short-term con- tracts—almost a probationary type of contract for a small trial or arm of a trial—to limit their exposure and to be able to better evaluate which CRO works well with them. Obviously, this is not really an option for smaller firms. In those cases, I'm pushing them to write short-term contracts with financial penalties for compliance failures. It takes some thinking through and back-and-forth, so there are no cookie-cutter templates avail- able, but everyone ends up hap- pier because money is now tied directly to compliance and good quality data. In the short-term, the increase in CRLs is going to drive up the cost of drug development as people adjust to the requirements. That said, the first firms out of the gates who 'get it'—which can look at the example CRLs that FDA is going to release and incorporate lessons learned—is going to see its approval rates skyrocket. It 's goi ng to b e i nte r e st i ng to watch over the next three to five years, and I'm pretty sure the financial analysts for the large investors are pay ing ver y close attention to which f ir ms seem to 'get it' and which spend their money and time spinning wheels, r e p e at i n g p a s t m i s t a ke s , a nd struggling. Startup firms seeking financing must be able to clearly answer how they will avoid the mistakes that caused CRLs in simi- lar startup firms. Smith (The FDA Group): I've cer- tainly seen an increase in the industry's attention to FDA inspec- tional findings and how they may apply the results to their own oper- ations. But it's a bit easier to stay abreast of 483 issues than it is to track deficiencies in CRLs, which are much less in the public domain. No doubt that as firms learn what FDA expects, they're doing a better job of meeting those expec- tations up-front. The significant increase in FDA g uidance that we've seen in recent months is very helpful. And I see more firms finally understanding the fact that FDA reviewers want more informa- tion in applications—not to cause pain, but to better understand how the process, the API, the formula- tion, [and] the finished product came together. It's not just about the finished product; it's about months and years of research, culminating in the final application. This change had required investing more time and money up front, but I believe that this approach is bringing bet- ter quality products to market and assisting FDA in the application review process as well. REFERENCES 1. A. Feuerstein, "An Open Letter to Dr. Scott Gottlieb o FDA Transparency," STATnews. com, January 27, 2018, https://www. statnews.com/2018/01/17/open-letter- gottlieb-fda/ 2. M. Nisen, "The FDA Should Shine More Light on Drug Rejections," Bloomberg. com, January 18, 2018, www.bloomberg. com/news/articles/2018-01-18/fda-crl- letters-more-transparency-is-better 3. P. Lurie et al., "Comparison of Content of FDA Letters for Not Approving Applications for New Drugs and Associated Public Announcements From Sponsors' Cross-Sectional Study," BMJ 2015:350 h 2750 (2015), www.bmj. com/content/350/bmj.h2758?utm_ source=STAT+Newsletters&utm_ campaign=39de12a8bb- Readout&utm_medium=email&utm_ term=0_8cab1d7961- 39de12a8bb-149677969 4. A. Shanley, "Moving Toward Direct- to-Patient Models," pharmtech.com, November 1, 2017, www.pharmtech. com/moving-toward-direct-patient- models BP

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