The vision of Life Science Leader is to help facilitate connections and foster collaborations in pharma and med device development to get more life-saving and life-improving therapies to market in an efficient manner. Connect, Collaborate, Contribute
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LIFESCIENCELEADER.COM JULY 2014 17 If you want to learn more about the report or about how to participate, please contact Nigel Walker, managing director, or Salvatore Fazzolari, director of client services, at Nice Insight by sending an email to niceinsight.survey@thatsnice.com . N . W A L K E R S . F A Z Z O L A R I Survey Methodology: The Nice Insight Pharmaceutical and Biotechnology Survey is deployed to outsourc- ing-facing pharmaceutical and biotechnology executives on an annual basis. The 2013-2014 report includes responses from 2,337 participants. The survey is comprised of 240+ questions and randomly presents ~35 ques- tions to each respondent in order to collect baseline information with respect to customer awareness and cus- tomer perceptions of the top 100+ CMOs and top 50+ CROs servicing the drug development cycle. Five levels of awareness from "I've never heard of them" to "I've worked with them" factor into the overall customer aware- ness score. The customer perception score is based on six drivers in outsourcing: Quality, Innovation, Regula- tory Track Record, Affordability, Productivity, and Reliability. In addition to measuring customer awareness and perception information on specifi c companies, the survey collects data on general outsourcing practices and preferences as well as barriers to strategic partnerships among buyers of outsourced services. partnerships with CMOs when it comes to new outsourcing relationships (59 per- cent vs. 48 percent). In fact, only one in 10 respondents indicated their company was not interested in forming new stra- tegic partnerships. The key attributes that influence strategic partner selection among this group are not the tradition- ally clichéd qualities. In reality, flexible payment terms and discounted pricing arrangements ranked last, while operat- ing procedures established collaborative- ly, a dedicated project manager, and long- term commitment were prioritized in the top three positions. If your business is planning to engage a new supplier for small molecule API, iden- tifying the right CMO may take a different approach than in the past. Four out of five respondents indicated that the first place they turn to identify suppliers is industry research, followed by referrals from col- leagues (71 percent) and consultants (65 percent). And a company's affordability or a discounted pricing arrangement is no longer top of mind when establish- ing a short list. Rather, quality and reli- ability — secured through collaboratively established operating procedures — lend more towards a mutually beneficial rela- tionship between the buyer and contract manufacturer. L Small Molecule API and Advanced Intermediates Outsourcing Small Molecules Overall Tactical Service Provider Preferred Provider Strategic Partnership 1 Operating procedures that are established collaboratively 2 Dedicated project manager 3 Long-term commitment 4 Customized protocols or outlines 6 Preferred scheduling arrangement 8 Flexible payment terms 5 Flexibility in terms of commitment 7 Discounted pricing arrangement Prioritized Attributes for Strategic Partnerships 27 31 37 36 Interest Level in a Strategic Partnership with a CRO / CMO Small Molecules Overall Interested Neither interested nor uninterested Not interested 59 48 32 35 9 17 32 37 0 7 1 4 _ O u t s o u r c i n g _ I n s i g h t s . i n d d 2 0714_Outsourcing_Insights.indd 2 6 / 2 3 / 2 0 1 4 3 : 5 6 : 2 0 P M 6/23/2014 3:56:20 PM