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Consortium Procurement and the case of Research Model Sourcing

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by Sudarsan P , Senior Research Analyst
31 March 2014

Research models are mostly purpose bred animal used to test the new chemical entity (NCE) / potential drug at the preclinical stages of drug development. The research model development is a highly regulated function and is also closely monitored by animal activists against the inhuman treatment of animals during the course of drug development. Research animals are prepared appropriately for the drug testing in order to represent as closely as possible the etiology, pathology and symptomology of the disease they are meant to represent in humans. The strains can be classified into two depending on the popularity: 1. Popular strains, for eg: Mice strains like BALB/C. 2. Strains that are not popularly used for drug research. Suppliers usually provide discount on the popular strains depending upon the volume being purchased. The discount provided could be as high as 25-30% depending upon the volume. The discount provided could be higher as the volume increases. Problem Statement Research Models form an integral component at the early stage of drug discovery. Research models breeding and their availability for drug testing are majorly outsourced. Major pharmaceutical buyers like Bayer have decreased the usage of animals for research purposes to the minimum by employing alternate methods like in vitro, in silico etc. Procurement of animals still remains as a major spend area in pre-clinical phase. Category managers are not in a position to save costs further. Lot many Logistics providers and air-freight service providers have stopped the transportation of research animals, due to increased protests from animal activists. These have in turn led to an increased importance for local sourcing. Many of the major airline players have stopped the transportation of NHPs including Philippine Airlines, China Eastern Airlines, Vietnam Airlines and United Airlines. Research model is a category where major variations can be seen among the various buyers in terms of the contract lead time.

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