{"id":24127,"date":"2017-11-15T16:51:42","date_gmt":"2017-11-15T21:51:42","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/how-digitization-of-pharma-rd-can-decrease-supply-chain-costs\/"},"modified":"2017-11-15T16:52:33","modified_gmt":"2017-11-15T21:52:33","slug":"how-digitization-of-pharma-rd-can-decrease-supply-chain-costs","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/how-digitization-of-pharma-rd-can-decrease-supply-chain-costs\/","title":{"rendered":"How digitization of pharma R&D can decrease supply chain costs"},"content":{"rendered":"

When you get sick, you head to the pharmacy, buy medication, and feel better a few days later. But how do you know the drug(s) you are taking will actually help you, or that they\u2019re actually safe?<\/p>\n

Drug R&D and clinical trial process is heavily regulated around the world to ensure safety and efficacy of drugs. The regulatory bodies (e.g., FDA in the USA) are demanding increasing number of data, analysis, and comparisons from pharma companies to ensure safety of drugs. To receive regulatory approval, companies are required to compare efficacy and safety of a new drug with established therapies as well as prove the benefits of the new therapy. [1]<\/p>\n

This requirement sounds simple and logical, right? However, clinical trials are usually conducted in multiple locations worldwide, and the results are stored in different databases in an inconsistent manner. Therefore, it\u2019s difficult to understand current therapies\u2019 efficiencies, safety levels, and costs. [1]<\/p>\n

Pharma companies first need to identify the comparator drugs, and then rely on supply chain intermediaries to deliver the commercially marketed \u201ccomparable\u201d drugs. However, the third parties occasionally experience decreased security, delays, and limited access to key drug documentation. The sourcing process is expensive, inefficient and difficult. Thus, pharma companies face the risk of counterfeits emerging onto the market, as the decreasing supply, increasing demand, and cost of \u201ccomparators\u201d create an incentive for inappropriate conduct. [2]<\/p>\n

\"\"<\/a>
Exibit 1: A Drug Supply Chain Example. FDA. Available: https:\/\/www.fda.gov\/Drugs\/DrugSafety\/DrugShortages\/ucm277626.htm<\/figcaption><\/figure>\n

Push for transparency<\/u><\/p>\n

It is expected that the supply chain costs will decrease when companies gain additional data on demand and purchasing behavior. They will be able to improve the forecast quality up to over 90 percent in the relevant level, e.g., SKU. [3]<\/p>\n

Thus, ten pharma companies founded TransCelerate BioPharma, a non-profit focused on simplifying and accelerating the R&D process of therapies. [4] To solve the issue of sourcing comparator drugs, the Comparator Network Initiative introduced a digital platform where companies can \u201creliably and rapidly source quality comparator products from each other for use in clinical trials\u201d [2].\u00a0 The participating pharma companies use the platform to source drugs directly from each other and readily share information. [1] By facilitating the transparency regarding supply and demand, the initiative accelerated timeline of the R&D process and improved patients\u2019 safety. This initiative also simplified the supply chain and drove costs down. [5]<\/p>\n

TransCelerate understands that driving transparency on a global level needs to cover additional aspects of the R&D and influence additional players to join the network. Therefore, TransCelerate is working to integrate more members in the network. For example, Novartis joined the non-profit in September 2017. [6] However, getting all members to join TransCelerate and accept its approach to the R&D process is a long-term game.<\/p>\n

TransCelerate is working to expand its initiatives to enhance data sharing to drive further efficiencies in the supply chain and patients\u2019 safety.[8] For instance, the non-profit has already introduced Clinical Data Standards Initiative to provide aggregation of data and gain efficiency in data collection in the short term. In the longer term, this initiative would aim at gaining interoperability between research sites, pharma companies, and Electronic Health Records to drive transparency of different R&D processes. Additionally, the company is working on eConsent initiative that will in the long term consolidate patients\u2019 information to get insights into patients\u2019 understanding, increase regulatory compliance, and reduce quality risks. [5]<\/p>\n

How to become the industry standard worldwide<\/u><\/p>\n

To meet both short and long-term goals, TransCelerate should focus on integrating the regulatory bodies data and processes into the digital R&D infrastructure. By having organizations such as FDA on their digital platform, it will gain credibility among pharmaceutical and biotech companies. If more members join TransCelerate, there will be more transparency, and ultimately more efficiencies achieved in the supply chain. Wining Supply Chain Innovation Award at the Council of Supply Chain Management Professionals EDGE Conference shows that TransCelerate can bring value, but will it be enough to encourage other players to join the network? [4]<\/p>\n

Setting up a non-profit organization to improve the efficiency of the R&D process through digitization of information storage and standardization of the R&D approach is important; however, the integration of multiple data sources holds a significant risk of data leakage. For example, a patient\u2019s information could be hacked and sensitive data on their illnesses could be compromised. Companies\u2019 competitive information could be released, risking loss of R&D secrets. Will patients, pharmaceutical companies, and regulatory bodies trust TransCelerate to protect their data?<\/p>\n

Additionally, global interoperability among systems is a problem that has yet to be resolved. [7] Will TransCelerate be able to create an end-to-end healthcare system worldwide despite high switching costs? Or will it become a US\/ Europe centered program with limited coverage in emerging and smaller markets?<\/p>\n

(793 words)<\/p>\n

[1] Pega, \u201cOutcomes 48 stories of success\u201d. [Online]. Available:<\/p>\n

https:\/\/www.pega.com\/system\/files\/docs\/2017\/Jun\/Pega-Customer-Outcomes.pdf<\/a><\/p>\n

[2] TransCelerate Biopharma, \u201cComparator Network\u201d. [Online]. Available:<\/p>\n

http:\/\/www.transceleratebiopharmainc.com\/initiatives\/comparator-drugs\/<\/a><\/p>\n

[3]. Alicke, K., D. Rexhausen, and A. Seyfert, \u201cSupply Chain 4.0 in consumer goods,\u201d McKinsey & Company. [Online]. Available: https:\/\/www.mckinsey.com\/industries\/consumer-packaged-goods\/our-insights\/supply-chain-4-0-in-consumer-goods<\/a><\/p>\n

\u00a0<\/em>[4] Council of Supply Chain Management Professionals, News release \u201cTransCelerate Wins Supply Chain Innovation Award at CSCMP’s EDGE Conference\u201d. [Online]. Available: http:\/\/campaign.r20.constantcontact.com\/render?m=1102520700892&ca=1297e4b4-92b6-47b0-9ee8-35560171da68<\/a>\u00a0 <\/em><\/p>\n

[5] TransCelerate Biopharma, \u201cWhat we do: Evolution of a TransCelerate Initiative\u201d. [Online]. Available:<\/p>\n

http:\/\/www.transceleratebiopharmainc.com\/what-we-do\/<\/a><\/p>\n

[6] BusinessWire, \u201cTransCelerate BioPharma Grows Industry Collaboration\u201d. [Factiva]<\/p>\n

[7] Ed Kellar; Brett Wilson, Susan Bornstein, Aleny Caban, Michelle Crouthamel, Catherine Celingant, Patricia A McIntire, Chrissy Johnson, Prasann Mehta, and Vanja Sikirica. \u201cOptimizing the Use of Electronic Data Sources in Clinical Trials: The Technology Landscape\u201d. Therapeutic Innovation & Regulatory Science, Volume 51; Issue 5, September 2017. [Factiva]<\/p>\n

[8] Transcelerate Biopharma, \u201cInformation Sharing and Harmonization Subcommittee QuickDraw\u201d. [Online]. Available: https:\/\/www.youtube.com\/watch?time_continue=2&v=pXIVgI9z-xY<\/a><\/p>\n

[9] Cover photo. [Online]. Available: https:\/\/pharmaboardroom.com\/article\/korean-pharma-companies-invest-more-in-rd-and-new-drug-development\/<\/p>\n","protected":false},"excerpt":{"rendered":"

Sourcing comparator drugs for pharma research and development process is expensive and there is high risk of receiving a counterfeited drug from a third-party supplier. To reduce these adverse effects, TransCelerate Biopharma started Comparator Network Initiative to introduce a digital platform where companies can source drugs for each other in a safe a quick way.<\/p>\n","protected":false},"author":9739,"featured_media":24128,"comment_status":"open","ping_status":"closed","template":"","categories":[3763,1686,3764],"class_list":["post-24127","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-comparator-drug","category-pharmaceutical","category-rd-process","hck-taxonomy-organization-transcelerate-biopharma","hck-taxonomy-industry-pharmaceutical","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nHow digitization of pharma R&D can decrease supply chain costs - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/how-digitization-of-pharma-rd-can-decrease-supply-chain-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How digitization of pharma R&D can decrease supply chain costs - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Sourcing comparator drugs for pharma research and development process is expensive and there is high risk of receiving a counterfeited drug from a third-party supplier. 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