Dr. Francisco Harrison

Chairman’s comments for 2011

Learning from the past to build the future

The evolution of the CRO market is certainly a very interesting area to observe. As a newer market, it is very sensitive to any changes in society, finances and trends. During the last few years we have observed a clear tendency in the CRO market towards a change in relationships and co-alliances between CROs and sponsors, which are becoming tighter and better defined. For Harrison Clinical Research, projects have become larger and more complex, budget reviews in some cases even larger than the initial project. Part of this environment in which HCR operates today has been created by the growth of our organisation, the expansion into new markets and countries and also our increasing potential to take on full responsibility for large global projects which, since 2006, has clearly defined the type of projects we are presently involved in. Phase III represents today more than 36% of our revenues.
It is certainly quite a different matter to manage budgets on a seven or eight-digit level than on a six-digit level. It does not simply work just by doing more of the same, or doing it bigger, it is just another league. It is another type of work, you have to keep the project in perspective without loosing the attention to the details. In summary, the work has to be done with a wider strategic view which makes it more complex but also interesting. The planning, controlling and communication become an essential issue for the project, in order to achieve the goals which are by nature, for these big trials, international. The internationalisation of our activities requires a total integration of all our offices and departments with the simultaneous streamlining of operations and adequate use of our training of tools, in order to facilitate the exchange of information and the management of projects.
The competition for new business among the handful of global CROs that can offer a full range of clinical services appears to be quite fierce today. The formation of strategic partnerships between drug companies and selected CROs actually limits the new business opportunities for the outsourcing firms that are not a party to these agreements. There are strong indications that the biopharmaceutical industry is more interested than ever in using outsourcing as a technique to manage costs and improve efficiency.

Cancellations have been other phenomena in the last two years. The level of cancellations should return to normal if the industry is to regain revenue momentum. However, I would add that in my view the future looks quite optimistic for those who learn from the past. In total I see five factors that will be important in the evolution of the market of CROs and HCR in the months and years to come.

• The economic recovery from the crisis. Most economic forecasts suggest the economy will continue its slow but steady recovery, the drug industry will continue devoting large sums to R&D and outsourcing firms will continue to increase their market share.
• The "Obama effect" in the USA has put the US pharmaceutical industry on guard.
  The pharmaceutical industry used to be one industry which survived best, especially in times of crisis. The potential economic commitment of these companies may have a negative influence on the development of new and expensive drugs. The question is who is going to pay for them (?)
• The completion of the "cleaning" effect on second/third priority projects. In many companies three studies have been converted into two and sometimes into one. The line -B- products which were never going to star, are now being re-evaluated. Does it really make sense to perform these studies, or not?
• The price competition between CROs is getting tougher and even if outsourcing is cheaper than "doing it at home", more efficiency is looked for by the sponsors to increase their gain and budgets are evaluated with a very critical view and from many angles.
• The trend towards consolidation of the CRO market is in full swing, the objective being to generate larger groups with global capabilities.

In general, I look positively towards the future of our industry, the market is alive and kicking and I think an improvement will be perceived in 2011, the developments since the new year indicate a move in this direction. The future of Harrison Clinical Research is based on adaptation to the needs of our clients, maintaining what is good and improving what is not so good.

The pharmaceutical, biotechnology and health industry has been subject to a lot of changes during this last decade. The outsourcing relationships between CROs and sponsors has changed considerably, the process has evolved, become more professional and the expectations and procedures for the final selection of a CRO provider have become a cumbersome process. Harrison Clinical Research must fully integrate sponsor's processes into our BD process to be able to gain the confidence of those sponsors and to accomplish our outsourcing dedication policy for which we would like to be recognised in the Market.

In 2011, we look forward to strengthening the capabilities of Harrison Clinical Research with its newly defined management structure. I would like to thank those of you who have helped support us with this project and look forward to making HCR in the future a truly global company with strong operations and quality where you, our clients, receive "Outsourcing Dedication" 24/7.

Dr. Francisco Harrison
Chairman of the Harrison Clinical Research Group


If you would like to contact Dr. Harrison, please call him on +49 89 126680-0 or e-mail him using the contact button below.

ContactDr. Francisco Harrison
Chairman of the Harrison Clinical Research Group