numh Outsourcing Trials for Fun and Profit


by Ismail Shalaby

(Posted October 2, 1998 · Issue 39)


Abstract

In the wake of widespread medical cost-cutting, companies specializing in organizing and running large multicenter clinical trials are a growth industry.


Physicians now practice defensive medicine to avoid the threat of legal action and to keep from being ostracized by insurers. Increasingly, they are asked to see more patients in less time, consult their colleagues less, accept lower reimbursements, and spend time justifying to administrators the value of tests. Hospitals, where cost-cutting is the norm, are also suffering. Outpatient care is encouraged as insurers pay less for hospitalization. It is no wonder that many physicians are leaving medicine or are seeking alternative ways to use their training and experience with less hassle. The commercialization of clinical research, including the testing and evaluation of new drugs, is providing many clinicians with an attractive alternative career or supplementary source of income.

In the past decade or so, clinical-research testing of new pharmaceuticals and biomedical devices has become a $10-billion industry that continues to grow rapidly. Ten or fifteen years ago, pharmaceutical companies directly contracted with physician-researchers to run studies designed to evaluate new drugs for humans. The companies directed the academic-research physicians, whom they paid through grants. An important change occurred in this field when decision-makers in the pharmaceutical industry realized that hiring independent outside groups to direct clinical research was more cost-effective than using in-house resources. A new for-profit (and lots of it) industry, totally devoted to conducting and running clinical drug trials, was born.

Companies specializing in organizing and running large multicenter clinical trials emerged as a result of this decision. These organizations assume responsibility for: recruiting physician-researcher principal investigators to lead the trials; monitoring the quality of the trials, following good clinical practice guidelines; and ensuring that the detailed paperwork involving data collection, budgeting, and sometimes statistical evaluation of results is properly completed. These companies are called contract research organizations (CROs). Many, such as Quintiles Transnational, Scirex Corporation, Parexel International, Pharmaceutical Research Associates, and Concepts in Pharmaceutical Research Inc., are multimillion-dollar firms. Other companies actually hire the clinical staff they need - physicians, nurses, and other personnel to conduct clinical trials themselves.

Community hospitals and physicians in private practice are benefiting from this growing multibillion-dollar industry. Indeed, clinical research, financed by the pharmaceutical industry, can now be a major source of supplemental income to many practicing physicians, nurses, and health-care facilities. Physicians who have turned to clinical research in a major way usually have had previous interest in pharmaceutical drug trials, have dedicated nurses and clinical coordinators who do much of the work, and have the specialty expertise and requisite patient population needed to conduct successful drug trials. An efficiently run operation is one that can enroll the requisite number of patients in a timely manner and provide lean, reproducible data that will stand up to U.S. Food and Drug Administration (FDA) scrutiny.

Today, community hospitals are forming clinical-research centers and hiring appropriate support personnel. As a result, they are attracting millions of dollars in grant money for such operations. Not wanting to be left in the dust by these private practitioners, colleagues, academics, and their institutions are fighting back. New clinical-trial centers are forming in major medical centers such as the Johns Hopkins School of Medicine, Duke University Medical Center, Washington University Medical Center, and College of Physicians and Surgeons at Columbia University. They claim to be more efficient and cost-effective, capable of recruiting more patients, and able to offer the superior research experience of their medical staffs. Such programs, like many scientific disciplines, run on reputation. If you prove you can enroll patients in an efficient, timely, and cost-effective manner, sponsors will come back for more help and bring with them more funds.

Where is all this leading? Pharmaceutical sponsors hope it will lead to a more efficient clinical research "machine," whereby potential new drug entities will prove themselves more quickly and in a fashion less costly than before. They look forward to getting faster results in the form of data that supports (or disproves) the efficacy of new drugs. This means faster approval by the FDA, which means faster potential profits. Of course, just as many one-product biotechnology companies vanished when their one product proved not to be a marketable commodity, some of these clinical research organizations will fall by the wayside. In fact, some have already folded. A few were even forced out of business after being exposed as frauds, most notoriously for forging data and making up nonexistent patients.

These few instances of failure should be expected in a relatively new and rapidly growing industry. I am an optimist and believe that as the industry matures, clinical-trial research will become a more efficient and cost-effective process in which academic centers (for the more difficult studies), community hospitals, individual physicians, and some of the outsourcing companies will all have important and profitable roles to play. I predict continued and successful growth of this industry.

Ismail A. Shalaby is chief executive officer of Nema Research, a clinical research-implementation organization in Baltimore, Maryland.
Andrzej Krauze is an illustrator, poster maker, cartoonist, and painter who illustrates regularly for HMS Beagle, The Guardian, The Sunday Telegraph, Bookseller, and New Statesman.

Send us your comments and ideas for future articles.

Endlinks

Society for Clinical Trials - an international professional organization that publishes the journal Controlled Clinical Trials.

MedWeb: Clinical Trials - an alphabetical list particularly useful for trials related to specific diseases. From the Emory University Health Sciences Center Library.

Applied Clinical Trials Online - the online version of the journal has selected articles, such as Unleashing the Electronic Tiger: How the Internet is Changing Clinical Trials; useful links, and conference listings.

CenterWatch - collects information on clinical trials, advertises ongoing clinical trials by disease category, and lists clinical research networks and organizations (which pay to be listed). This is a good source for patients, pharmaceutical sponsors, clinical-research organizations, and small research entities.

FDA Institutional Review Board Operations and Clinical Investigation Requirements - one place to start learning about clinical trial regulations.

Web sites mentioned in this column:


Previous Op-Ed Articles
A Journal Falls Silent, Muffling History
by Alan I. Packer (Issue 38  posted September 18, 1998)
The NIMH's Multiple Personality
by E. Fuller Torrey (Issue 37  posted September 4, 1998)
On Uncertainty and the Death of Cod
by Stephen J. Hall (Issue 36  posted August 7, 1998)
I Thought You'd Never Ask
by Beryl Lieff Benderly (Issue 35  posted July 24, 1998)
Keeping It in the Family
by Robert Insall (Issue 34  posted July 10, 1998)
Private Sector, Public Science
by Scott Stern (Issue 33  posted June 26, 1998)

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