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Dr
Manu Jaggi
Director, Dabur Research Foundation
The author holds a doctorate in cancer biology from the National
Institute of Immunology and is a postgraduate in pharmaceutical
sciences. He has more than 20 years of research experience in new drug
discovery and early and advanced preclinical drug development. He is
currently the director of Dabur Research Foundation, a preclinical CRO. |
The pharmaceutical industry, which is recovering from an economic
downturn, is now undergoing significant changes ranging from drug
development philosophy and tightening of regulations to restructuring,
consolidation, and mergers and acquisitions. These changes are
impacting the contract research organizations (CROs) and the services
that they provide, from where, and to whom. The drop in R&D
spending during the last few months is beginning to take its toll on
preclinical CROs, which are experiencing heavy discounting, delays, and
cancellations. These changes may, however, present some opportunities
for CROs. Although R&D spend has been down, many in the industry
believe that outsourcing will inevitably rise in the near future.
Preclinical CROs face situations that are as challenging as those faced
by pharmaceutical and biotechnology companies but with additional
unique challenges. In this service-based industry, managing customer
relationships is especially important. Staying at the forefront of
cutting edge technology is crucial, and the service portfolio of a CRO
must adapt to utilize new tools and maintain a state-of-the-art
offering of services and capabilities to customers. Contract research
organizations must also make their clients comfortable to entrust them
with the responsibility of conducting a study. At the same time, CROs
face pricing pressures and competitive marketplaces, just like
companies developing the products.
In the current scenario, Dabur Research Foundation has taken six key
initiatives to differentiate itself from the others.
Strategic partnership with other CROs
Rather than being the small fish in a big pond, emerging firms are
actively elevating their status by testing the waters of strategic
partnerships with other CROs. In an article in BioSpectrum this year,
titled ‘The Year of Consolidation & Collaboration: CROs to see big
boom’, I mentioned that many CROs and pharmaceutical companies are
turning to strategic partnerships to gain a competitive edge in the
global business environment. Various business models are being employed
to forge long-term relationships. Consolidation of businesses has
turned from a trend to reality. The CRO market, which is highly
fragmented today, will see further consolidation in 2012 where small
and large CROs will continue to merge. Dabur Research Foundation now
has strategic partnerships with other Indian CROs that enable a broader
service offering to clients. Such partnerships are a win-win situation
for both clients and the CROs.
Customization of services
A smaller CRO has the ability to tailor its services to the specific
needs of the sponsor. This has the added benefit of building trust
since the sponsor doesn’t feel nickel-and-dimed. Dabur Research
Foundation recognizes the need for outside the box thinking to enable
rapid and cost-effective preclinical development of molecules for its
valued clients. We take pride in the fact that we go beyond being a
service provider and partner with our clients during the entire drug
development process. To facilitate this, Dabur Research Foundation has
a unique central innovation research team (CIRT) that develops novel or
hard to do in vitro, ex vivo and in vivo disease models required for
specific client projects. The CIRT comprises talented researchers who
take responsibility for development, validation and successful transfer
of new models to the study teams.
Gaining entry in new geographies
While it is imperative to expand the geographical reach of the
business, it is virtually impossible to set up offices and hire
business development personnel in each of the important geographies.
Several countries have not-for-profit organizations that have a mandate
of helping those interested in exploring market opportunities, provide
in-depth information on key industries and offer guidance for setting
up business in their countries. Majority of such organizations are
located in important biotech hubs with a cluster of small and large
pharmaceutical and biotechnology companies operating in diverse
therapeutic areas. With an aim to promote the region internationally
while attracting and maintaining foreign companies, entering a new
geography with the help of such organizations is a very attractive
route before one makes larger financial commitments.
Do more with your website
Your website should be your most effective marketing tool for lead
generation. Besides putting details of your services on the website,
conversation opportunities are being increasingly employed by CROs
today to increase visibility and attract business. Newsletter,
notifications, opportunity to download documents and reports,
encouraging prospects to email with questions, and options for online
instant messaging are being seen on many websites. Many also link blogs
to websites. People want to be educated these days, not sold. Blogging
helps to position yourself as an expert in your field. Also, linking
your blog to the website helps increase the likelihood of your site
moving up in search engine rankings.
Partnering meetings
Personal interaction with contacts, at conferences, trade shows,
congresses, and through presentations is an old and time tested way of
effective marketing. Partnering meetings give an opportunity to connect
with a growing community of potential partners. It’s an ideal forum for
meeting people with expertise in research, manufacturing, materials,
regulations, licensing, financing, or intellectual property rights.
Deals that may otherwise seem very complex to consummate and take
several weeks or months get expedited since such meetings help you to
set appointments with the decision makers.
Use online marketplace
While it is important to have a broad-based service portfolio, it is no
good if potential clients are not aware of the services. There are
several online marketplaces for drug discovery and research services.
Researchers are increasingly using this marketplace to find, compare
and purchase research services and to request information from
thousands of contract research organizations. Dabur Research Foundation
uses this marketplace to offer services and products to the global
research community.
What doesn’t work
With ready availability of advanced software solutions and hosted
services, launching a mass email campaign has become easier than ever
before. Mass email is a powerful vehicle that gives you the opportunity
to market new products and services to a global audience of potential
customers. However, there is a very fine line between genuine email
marketing and spam and several surveys have shown that such mails are
treated much the same way one treats pesky SMSes today.
Great technical skill-set but a poor representation of business has
been the bane for many CROs. Clients are no longer satisfied by just
meeting the business development manager who has great business sense
but knows little about the technical aspects of the study being
discussed. Decisions about outsourcing are increasingly been taken by
senior scientists today and they want to meet people who understand
science and can make them comfortable outsourcing their precious
studies.