Advanced Clinical is a clinical research services organization that provides comprehensive Contract Research Organization (CRO), Functional Service Provider (FSP), and Strategic Resourcing solutions to optimize effectiveness for both patients and sponsors throughout the drug development journey.
Julie, what did 2024 bring for Advanced Clinical?
Advanced Clinical has continued to grow over the past year despite a challenging market. We estimate a 5 to 8% year-over-year growth despite the tough conditions. The financial market pressures that began in early 2023 have impacted not only clinical research but the broader pharma life sciences industry and many others. As a result, clients have been redesigning their portfolios, cutting ongoing programs to prioritize higher-value compounds or assets and have focused on cutting operational expenses. This has led to delays in decision-making as companies adapt to the increasing cost of money and the need for more strategic spending.
However, our continued growth reflects the value of our service platform to our customers. Companies are being more conscientious about where and when they allocate resources, and we have seen significant shifts in focus. Advanced Clinical has adapted to these changes, demonstrating resilience and the capacity to support clients through their financial and operational decisions.
In that context, how did you manage to achieve growth?
Our service offerings have been a key driver of growth. We provide a flexible delivery platform that includes strategic resourcing, functional service provider (FSP) solutions, and a full range of CRO services, allowing us to meet the demands of various clients. This adaptability is crucial as companies look to reduce costs, whether through insourcing talent, building functional teams, or fully outsourcing clinical trials. Our client base is predominantly mid-to-small-sized companies, which are dynamic and benefit from our ability to scale quickly to meet their needs.
Additionally, our focus on high-demand therapeutic areas such as oncology and rare diseases has been instrumental. Oncology remains the largest part of the clinical development pipeline, and our expertise in managing complex trials has positioned us as a trusted partner. While financial pressures have tempered our growth—down from double-digit percentages in prior years—we remain on track.
The financial environment has been challenging for many. Some suggest it has pushed companies toward CROs and CDMOs to optimize spending. What is your perspective on that?
While companies are certainly seeking to optimize through CROs and CDMOs, there has been a noticeable delay in decision-making and releasing funds. Publicly reporting CROs have experienced missed targets, cancellations, and slowdowns, reflecting broader hesitations in the market. Companies are building strategies to manage operations more efficiently, but cash flow concerns have made them cautious about committing to new expenditures.
CROs are indeed part of the solution, offering ways to optimize operations. However, clients are spending less and taking longer to finalize their commitments. The optimization strategies are there, but the readiness to act decisively is still lagging due to the current market realities.
Do you anticipate better winds in 2025?
Leading indicators suggest the financial environment and clinical research industry will gradually improve in 2025, but a full rebound is not expected in Q1. The pace of recovery will depend on several factors, including the U.S. election and its impact on legislation like the Inflation Reduction Act, which may influence revenue pools and outsourcing decisions. Changes at the FDA, including potential leadership shifts, could also shape the regulatory landscape.
In terms of specific sectors, vaccine trials may face challenges, depending on how these external factors unfold. Conversely, oncology appears more resilient and less likely to encounter significant disruptions.
Last year, you discussed your innovation hub. What developments have emerged since then?
As we near the end of our 2024 cycle, we are focusing on identifying two to three minimal viable products (MVPs) from the innovation hub. By year-end, we will determine which MVPs to invest in for the coming years. A key highlight has been our efforts to redesign the data capture and monitoring process for clinical trials. If I had to predict, our main investment will likely focus on this area, given its potential to transform how trials are conducted.
The innovation hub represents a commitment to streamlining and improving clinical trial operations. This initiative aligns with our broader goal of driving efficiencies and advancing how trials are executed across the industry.
How do you see the clinical trial of the future evolving?
The future of clinical trials will increasingly integrate decentralized tools, enhancing access for more diverse patient populations. These tools will not be one-size-fits-all; instead, their implementation will vary based on location, patient demographics and trial requirements.
Moreover, there will be a growing emphasis on patient engagement. Clinical trials have historically been driven by rigid processes and procedures, but the emotional and motivational factors influencing patient participation and retention will take center stage. This shift will require rethinking how trials operate while balancing regulatory requirements with a deeper focus on the patient experience.
You expanded into India in 2024. What does this expansion entail, and what are your objectives?
Our expansion into India has been an exciting milestone. We have established a legal entity, hired initial staff, and introduced systems to integrate this new operation. As we move into 2025, we plan to scale rapidly, creating centers of excellence for shared services and supporting client needs in areas like medical writing, data management, and document handling.
India offers exceptional talent and cost optimization opportunities. By leveraging these advantages, we can provide flexible, high-quality solutions across time zones, meeting our customers' growing demands efficiently and effectively.
Why should life sciences companies partner with Advanced Clinical?
We offer a better clinical research experience through unmatched flexibility and service offerings. Whether clients need to in-source talent, build functional teams, or fully outsource, we can adapt to their changing needs. This dynamic approach allows us to combine solutions as projects evolve, providing a unique advantage.
As a thought leader in the clinical research industry and the only mid-tier provider offering global contract staffing, FSP and full-service clinical research solutions, we deliver cost optimization and high-quality execution. Our ability to meet clients where they are and scale with their requirements while bringing creative solutions to the forefront, makes us an ideal partner in today’s dynamic clinical research environment.
