Most biotechs will be virtual in 25 years; preclinical director
Biotechs have faced major challenges over the past 12 months as venture capital has dried up and some believe that even when the economy improves there business model will remain changed.
Speaking to Outsourcing-Pharma Jonathan Kearsey, director of pharmacology and business development at Paris-based L2D Services, explained how the preclinical contract research organisation (CRO) was formed to help biotechs meet these challenges.
Working at a biotech Kearsey and his partners at L2D were asked every three months how the project could be performed quicker and cheaper. Having investigated outsourcing Kearsey found it to be five times more expensive and up to three times as long as in-house preclinical.
Consequently the biotech kept its preclinical work in-house but Kearsey and his partners identified an opportunity. Large preclinical CROs use internal service providers with internal calendars and by breaking away from this model Kearsey believes L2D can better serve clients.
By negotiating service contracts individually Kearsey believes that L2D can ensure that “every Euro counts”. Having worked in the biotech industry the partners understand the pressures on companies in the sector and have tailored their services accordingly.
Kearsey added that the current state of the biotech industry, with many companies developing one or two products, makes outsourcing an attractive option as often preclinical teams are short of work.
This is an inefficiency that biotechs can ill afford and the situation can worsen if disappointing data is received. In these cases it is easier to cheaply and rapidly close down operations if the preclinical work was outsourced.
Furthermore, since biotechs often only have three to six months worth of money it is difficult to hire experienced staff and this can hinder the preclinical process.
Pushing the model
L2D was formed on June 29 and had signed its first contract within seven days. The company now has three clients and is seeking to expand this by meeting with people to explain the business model and how it can help biotechs.
Kearsey added that the response so far has been “incredibly positive”, with those he meets saying they have “never seen a business model like this”. L2D will be hoping to continue this positive trend when it attends BioPartnering Europe in October.
