The document discusses the evolving relationship between sponsors and contract research organizations (CROs) and provides a projection for what these relationships may look like in 2015. It notes that traditional transactional relationships are shifting toward more strategic partnerships due to factors like rising costs, globalization, and capacity limitations. By 2015, relationships are projected to involve integrated structures, coordinated teams, shared governance, and risk sharing between fewer, long-term partners selected based on competencies rather than just capacity. Analogous industries like movies, financial services, and aerospace provide insights on collaboration approaches that may influence future sponsor-CRO partnerships.

1. Sourcing 2015: projecting Sponsor-CRO Relationships of the Future Ken Getz, Tufts CSDD [email_address] Dave Zuckerman, CIS [email_address] April 2009

2. The Traditional Sponsor-CRO Relationship

5. Driving Vertical Integration Preclinical Phase I Phase II-III Percent of total spending on outsourcing 15% 23.2% 34% Past 3-yr annual growth in outsourcing spending 10.2% 17.6% 14.9% How long has pharma been outsourcing? 1-5 years 5-7 years for ‘services’; 15 yrs for facilities 20 years Drivers of outsourcing Capacity needs, expertise Regulatory reform, capacity needs Globalization, capacity needs

6. Driving New Relationship Structures Transactional, Tactical Strategic, Partnerships I J H G F D A E B C Large Small Mid- Size Source: Tufts CSDD 2008 Study

8. Competencies are Shifting from Internal to External QA & Regulatory Affairs Planning & Design Project Management Data Management Externally- Based Internally- Based Competency

17. The Traditional Sponsor-CRO Relationship

18. Future Sponsor-CRO Partnership