Pharmaceutical Industry Under Pressure: Where Will Clinical Trial Efficiencies Come From?

The pharmaceutical industry is facing unprecedented financial scrutiny, particularly with policies like the Trump Administration’s “Most Favored Nation” (MFN) pricing, which aims to lower drug costs in the US by aligning them with the lowest global prices. This has raised concerns within the industry about its potential impact on pharmaceutical companies’ research and development (R&D) efforts and funding from the National Institutes of Health (NIH).

Jim Kremidas, executive director of the Association for MultiSite Research Corporations (AMRC), recently shared his insights in an interview with Applied Clinical Trials. Drawing on his extensive background at Eli Lilly, Kremidas expressed apprehension that the MFN policy could lead to reduced investment in crucial new therapies.

However, Kremidas also highlighted a promising avenue for efficiency: multisite clinical research corporations (MCRCs). He believes these entities can significantly streamline clinical operations by consolidating contracts and improving overall efficiency in drug development.

The Search for Cost Savings: R&D in the Spotlight

When asked where pharmaceutical sponsors might first look to cut costs amidst increasing financial pressure, Kremidas pointed to two primary areas: sales and marketing, and research and development. While acknowledging potential savings in commercialization, he emphasized the R&D side, particularly clinical development, as a key area for improvement.

“As I mentioned earlier, it’s going to have an impact in terms of the approach that pharma companies take to developing new drugs,” Kremidas stated, referring to the MFN policy’s influence. He suggested that while pre-clinical stages might see some cost-cutting, the most significant opportunities lie within clinical development.

Beyond Technology: The Human Element of Efficiency

While new technologies like artificial intelligence are increasingly being leveraged to drive efficiencies in clinical trials, Kremidas stressed that these tools are only part of the solution. He underscored the critical role of human capital in the drug development process.

“Technology helps, but at the end of the day, it’s people who administer these studies,” Kremidas explained. “There are people that manage the studies, the site staff, the pharma company staff, the CRO staff.”

Ultimately, Kremidas believes there’s ample opportunity to improve the inherent inefficiencies within the current structure of drug development, from Phase I through Phase III. He emphasized that by addressing these operational inefficiencies, the industry can navigate financial pressures more effectively while continuing to bring vital new therapies to patients.

Source: Applied Clinical Trails, June 5 2025