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Are Academic Medical Center Clinical Trials Going the Way of Oldsmobile? Cincinnati Innovations in Healthcare Delivery 2006 David Dilts PhD, MBA Professor & Director, Management of Technology Program, School of Engineering Professor & Director, Center for Management Research in Healthcare (www.cmrhc.org) Owen Graduate School of Management Vanderbilt University [email protected] The will is infinite and the execution confined, The desire is boundless and the act a slave to limit. Shakespeare, Troilus and Cressida 2 Research Focus Transfer hard won lessons-learned from one domain to another Note: Every setting is “special” in some ways, but typical in others 3 Remember When (1970’s) 1970 Corvette Stingray 1970 Toyota Carina The president warned that Americans were wasting too much energy, that domestic supplies of oil and natural gas were running out– Jimmy Carter 4 What’s Happened Since 5 Two Days in July & August July 3, 2006: North America Sales GM Sales ▼26% (37% in light trucks) – Ford Sales ▼6.9% – DaimlerChrysler ▼15% – Toyota Motor ▲14% (22% in passenger cars) – Nissan ▼19% – August 1, 2006 – Toyota became the 2nd biggest selling auto company in the United States – Honda outsold the Chrysler Group 6 Toyota sales ▲16.2%, Ford sales ▼32% Honda sales ▲10.5%, Chrysler sales ▼31.5% Not convinced yet? August 18, 2006: – – Ford to cut 21% of its N.A. production, will partially shut down at least 10 plants Ford & GM credit-ratings are five notches below investment grade (just above junk bond status) Sept 6, 2006 – 7 Bill Ford, jr, resigns as Ford CEO A telling statement “We are trying to figure out how and how much you advertise new products that are going into (a) segment that may be DOA” – A Ford SUV manager 8 WSJ, Aug 19-20, 2006, p. A7 Development Time in General 160 144 140 Months 120 ▲155% 100 80 60 56.4 41.7 40 ▼42% 24 20 0 1995 New-to-the-world products or services 9 2004 Pharmaceuticals Question: Why does it take ~60 months to develop & certify a new jet aircraft but it takes: 38% (~23 months) longer for New Drug Development & Approval Times – (Tufts CSDD Report 2003, Vol. 5, No. 2) 48% (~29 months) longer for New Biopharmaceutical Development & Approval Times – 10 (Tufts Center for the Study of Drug Development Outlook 2004) What US Manufacturing Discovered: U.S.A. was – – best in the world, once we started manufacturing worst in the world, at getting ready to manufacture, i.e., set-up times When Henry Ford Designed the River Rouge Factory in 1927 for the Model A: – – – 95% Direct Labor costs, 5% other costs From “ore to assembly” “…easily the greatest industrial domain in the world” DL Lewis By 1985 – – 11 <50% of workers were in direct labor “World-class” = “Made in Japan” Focusing on Setups: The Process Thought-To-Be versus As-Is Do not assume that the set-up time is fixed Specifically study what is done (not what is thought to be done) and why each action is done (Morison, EE 1966 Men, Machines, and Modern Times, MIT Press.) 12 The Risk/Cost/ Time Development Paradigm Focusing on the “Elbow” Hypothesis Generation Clinical Candidate Development Commercialization $800 MM Cumulative Investment Target Identification and Validation ↓ Lead Assay Optimization Development ↓ Lead Generation $500-600 MM PreClinical Development Phase I Phase II Phase Registra- Global tion III Launch Global Optimization $200-300 MM $20-60 MM Risk Time 13 8 – 12 Years Barker, Anna, TRWG, 2/2006 What Must Be Done Before Any Clinical Trial Infrastructure Processes, – i.e., The Dreaded TLAs IRBs: Institutional Review Boards SRCs: Scientific Review Committees C&Gs: Contracting & Grants Office CTOs: Clinical Trial Offices CRCs: Clinical Research Centers 14 Current Study Settings Community Groups Vanderbilt-Ingram Cancer Center Affiliates Network (VICCAN) home office 3 VICCAN member sites – Memorial, Chattanooga, TN – Central Georgia Hem/Onc (CGHO), Macon, GA – Meharry Medical College (MMC), Nashville, TN Comprehensive Cancer Center (VICC) – Academic Medical Center (VUMC) – Cooperative Oncology Group – 15 Cancer and Leukemia Group B (CALGB) Method Part I: Process Mapping – Extensive visits at each site to document processes, loops and decisions: – Identify calendar time for total process and major steps, and potential influencers of the time Part III: Bottleneck Timing – Creation of process map Part II: Process Timing – Say: What they say they do Should: What policies and procedures say they should do Do: What study chart reviews show they actually do Using the identified bottleneck process, drill down to discover why Part IV: Fix the processes Key Aspects: – – What are the bottleneck or constraining processes? What is the critical path to opening a study? Dilts and Sandler (2006) “The Invisible Barriers to Opening Clinical Trials, J Clin Onc, 24(28), xxx 16 Investigator-Initiated Clinical Trials At VICC – Level 0 Diagram Clinical Trial Steps Set-up Steps 17 Process Map at CALGB Steps to activate a study 30 ft x 5 ft in 8 pt font – Opening a study requires the additional steps shown previously 18 And both come before the 1st patient on study Processing Steps CA LG B VIC C Number of … VIC C AN To open or activate a study… < 60 > 110 >370 Groups / Individuals Involved 13 - 27 < 27 > 30 Signatures Required 4 - 12 13 - 27 > 70 Decision Points n/a n/a 42 Processing Loops n/a n/a 29 Note: Some signatures take less than a minute to obtain… … others take up to 60 days Dilts et al. (2006) “Processes to Activate Phase III Clinical Trials in a Cooperative Oncology Group, the 19 case of CALGB”, J Clinical Oncology, 24(28), xxx. More In-Depth Look at VICC IRB 29 Approvals 8 Primary Participants 20 3 Secondary Participants 26 Paperwork 12 Value-Added Activities 1 Study Approved 9 Stopping Points Some Statistics Participants Level 0 (Macro Process Level) Primary Other ---------Steps---------Value Added NonValue Added Outcomes % Value Added Decision Points Decline Accept Or N/A VICC 11 16 15 5 75% 13 2 1 VICCAN Main Office 3 - 7 3 70% 3 2 1 VICCAN Member Sites (range of 3 sites) 3 1-8 6-15 1-5 75% 4-13 4-6 1 IRB 7 3 12 26 32% 23 9 3 IRB Amendments 6 - 14 13 52% 13 6 3 SRC 4 - 13 11 54% 10 3 1 Regulatory and Clinical Research Center 6 - 13 15 46% 7 1 1 Sub-Process Level 21 Part II Timelines Key Issue: What is the bottleneck or constraining process? Median Times 217 Receipt to First Pt 34 Open to First Pt 172 Receipt to Open 70 SRC 78.5 Contract & Grants 47 IRB 39 Start to First Process 0 50 100 150 Days 22 200 250 Major Processing Activities Protocol Develoment 477 days Protocol Review 277 days CIRB Review 111 days Concept Review 126 days Concept Development 193 days Forms / Database Development 434 days CDE Compliance Review 240 days Grant Development 222 days Concept Review 16 days Concept Voting 2 days Regulatory Affairs Development 350 days FDA Review 100 days Concept Approval 7 days Study Team Teleconference 16 days 23 Median= 784 days Activation 7 days Results of Expediting 120.0 100.0 90.0 100.0 60.0 60.0 50.0 40.0 40.0 % of Studies Requiring Revision 70.0 80.0 30.0 20.0 20.0 10.0 % 0% 10 95 % 90 % % 85 80 % 75 % 70 % % % 65 60 55 % 50 % % 45 40 % 35 % 30 % % % 25 20 15 10 % 0.0 5% 0.0 0% Number of Studies Opened in 5 yrs 80.0 % of Studies Expedited Studies Opened % Revisions Note: In the studies investigated, expedited studies were only opened 15 days 24 faster than nonexpeditied studies Timing At VICC: studies received between 1/1/01 to 12/31/05: N By Phase (p=.151, excluding N<11) Pilot I I/II II II/III III Other Mean (Std Dev) Median (95%CI) Min-Max 5 28 20 91 7 50 10 250.0 204.9 178.2 200.2 154.9 173.2 127.9 ( 60.15) (125.82) ( 81.16) (104.31) ( 67.68) ( 99.64) ( 45.49) 231 (189-344) 176.5 (131-249) 174.5 (123-235) 181 (166-204) 174 ( 57-238) 157 (138-175) 120.5 ( 80-160) 189-344 27-614 27-356 41-594 57-238 54-657 62-228 By Sponsor Type (p<.001) Company Internal Oncology Coop Group Other 131 8 58 14 208.8 239.1 141.6 221.4 ( 97.00) ( 95.44) ( 96.07) (115.18) 179 (167-195) 230 (158-449) 120 ( 97-147) 197.5 (155-259) 41-614 158-449 27-657 62-475 By Manager (p=.192) VICC VICCAN 193 18 185.8 ( 98.99) 218.6 (127.65) 171 (158-182) 191 (119-269) 27-657 62-594 All 211 188.6 (101.80) 172 (159-182) 27-657 25 Part III: Drilling Down on Contracts & Grants at VUMC Dependent Variable: Time from Receipt to Signature (days) Master contract (p=.164) Mean N Std. Dev Median Minimum Maximum No 312.26 114 175.984 305.00 29 938 Yes 289.53 78 166.841 279.50 12 730 Total 303.03 192 172.250 298.00 12 938 Mean N Std. Dev Median Minimum Maximum No 290.96 163 156.046 294.00 12 938 Yes 370.83 29 236.431 334.00 33 881 Total 303.03 192 172.250 298.00 12 938 Mean N Std. Dev Median Minimum Maximum Preclinical 315.59 68 138.497 314.00 40 726 Phase I 235.83 12 113.846 249.50 13 409 Phase 2 309.46 28 162.165 312.50 29 730 Phase 3 277.50 28 160.942 304.00 13 598 Evaluative 291.37 49 216.687 236.00 12 938 Other/Device 454.14 7 232.827 433.00 115 818 Total 303.03 192 172.250 298.00 12 938 Medical Device (p=.001) Phase or Study Type (p=.986) 26 One Other Disturbing Statistic: Percent of Studies by Phase with Accruals Range Accrual Per Trial I I/II II II/III III PILOT Other Total 0 3.4% 10.0% 22.3% 0.0% 27.5% 50.0% 36.4% 20.6% 1-4 31.0% 40.0% 35.1% 71.4% 27.5% 16.7% 18.2% 33.0% 5-10 27.6% 10.0% 20.2% 19.6% 33.3% 9.1% 19.3% 11-15 13.8% 15.0% 10.6% 11.8% 9.1% 11.0% 16-20 6.9% >20 17.2% 25.0% 3.2% 14.3% 3.9% 8.5% 14.3% 9.8% 3.7% 27.3% 12.4% If insufficient patients are accrued, then all process steps are non-value added! 27 CALGBPhase Phase Accruals foratTrials Investigated IIIIII Accrual Rates CALGB 5000 4500 4000 15% of all studies activated in a 5 year period resulted in no accruals 3500 Accrual 3000 2500 2148 2000 1500 1000 732 513 500 369 238 212 152 67 63 42 41 15 1 May-05 Apr-04 0 May-02 Oct-03 Jun-04 Dec-03 Dec-03 Dec-02 Apr-05 May-02 Jan-04 Mar-04 Dec-04 Breast GU GU Leuk GI* GI GU Resp* GU GU Transp Lymp GU* 40101 90206 80303 10201 80203 80101 90401 30102 90202 90104 100104 50303 90106 Accruals 28 Expected Accrual Phase III- More and Deeper 2nd Major NCI Grant – Study Settings: – Outcomes Individual process maps for each group Timing data study for all sites Projected Phase IV – Eastern Cooperative Oncology Group (ECOG) 4 Comprehensive Cancer Centers Cancer Therapy Evaluation Program (CTEP) – Studying CTEP is equivalent to being allowed to study how the IRS makes its decisions. Major roundtable to dramatically improve the system Other activities: – – – – 29 EDRN – early detection research network CTWG –clinical trials working group TRWG – translational research working group & pharmaceutical firms are becoming interested What Drug Companies are Doing Some Statistics Year 2001 2003 U.S. PI’s 25,000 21,000 -16% U.S. Clinical trial sites 51,000 48,000 -6% 3,900 4,500 15% FDA-approved investigational drug studies (all phases) “29% of our clinical trials are now done abroad, we expect that figure to jump to 50% in two years.” – Tadataka Yamada, GlaxoSmithKline’s Chairman of R&D Discussing a post-marketing clinical trial for two cardiovascular drugs – involving 46,000 patients in 1,250 hospitals in China – cost $3 million. “Could you do it in Europe? I don’t think so.” Tom McKillop, Former CEO of AstraZeneca (quoted in WSJ, 2/14/2006) “For a Phase II trial, the cost for 100 patients in China could be as low as $25,000, while in the U.S. or Europe, it could range from $500,000 to $1 million Dr. Ikeguchi, Medidata Solutions (quoted in WSJ 2/14/2006) 30 Don’t look to the government to bail out AMCs “NIH Budget Falls for the First Time in 36 Years” AAAS R&D Funding update – http://www.aaas.org/spp/rd/nih06f.htm “If the knives are going to come out, now is when it will happen” National Journal Group, 04-15-2006 31 Think It Can’t Happen Here? So did they: – Oldsmobile – Winchester – Founded in 1860 “The Gun that Won the West.” No longer made in America after March, 2006. RCA Victor 32 One of the original car companies (1874) After 107 years, 35.2 million cars, Ceased production in 2004 World’s largest manufacturer of phonographs (Victrola) Introduced the 33 1/3 RPM Died as a manufacturer, circa 1970 Importance of the Problem: the Cancer Burden Iceland 1,000 / 500 Canada 138,000 / 66,000 United States of America 1.4M / 566,000 7.6 million people died of cancer in 2005 Sweden 43,000 / 22,000 Norway 21,000 / 11,000 Estonia 5,000 / 3,000 Ireland Germany 13,000 / 8,000 408,000 / 218,000 United Kingdom 277,000 / 156,000 Austria 37,000 / 19,000 Japan 521,000 / 311,000 China 2.2M / 1.6M Switzerland 35,000 / 17,000 France 269,000 / 149,000 Korea 109,000 / 62,000 Republic of Singapore 10,000 / 6,000 Australia 86,000 / 37,000 Cancer Incidence / Mortality per year Source: Derived from International Agency for Research on Cancer, GLOBOCAN 2002 database 33 Bottom-line With: – Setup for each clinical trial phase taking 2.1 years for a cooperative group, then ~5 ½ months for a comprehensive cancer center – Then: – And a typical drug requires three phases ~7.8 years are spent in setup paperwork Therefore: – For Pharmaceutical Firms: – A nearly 8 years of sales are lost, along with those profits For physicians & patients: ~11 million new cancer patients in the US alone will not have the best treatment possible ~4.4 million cancer deaths will not be prevented or delayed 34 ALL BECAUSE OF PAPERWORK Thank you Does It Only Work For Manufacturing? – – IBM Credit went from 7-days to 4-hours without an increase in headcount Ford Accounts Payable had 500 people to do the same work that Mazda did with 5 – – (Hammer & Champy (1993) Reengineering the Corporation) Southwest Airlines 10 minute turn-around time “Ticketless” travel No Assigned seating Can we use the same techniques in Clinical Trials? 36 Composition of Development Time Typical Reported Phases – – Clinical Phase FDA Approval Phase But can a study start once a LOI is submitted? Or must you wait? If you wait, what are you waiting on? Setup processes, all of which take time But setup is not typically measured 37 Bottleneck in the Bottleneck % of total time 1 e-contract & protocol received 2 1st revisions to sponsor 3 Sponsor Disagrees 4 Sponsor Agrees 5 1275 form (budget) sent to Finance 6 Required Dept Signatures 7 Required Contracts Signatures 8 Required Sponsor Signatures 38 Mean Median 4% 1% 5% 3% 10% 6% 17% 43% 8% 13% 47% 4% 1% 12% 0% 6% And the problem is getting worse In the 1990s, the FDA approved 38 new agents for treatment of cancer and cancer-related indications, more than the preceding 40 years The more than 100 claims approved for treatment indications during the 1990s far exceeded the total of those granted in the proceeding 40 years – (Rothenberg ML, Carbone DP, Johnson DH, Improving the evaluations of new cancer treatments: challenges and opportunities. Nature Rev Cancer 2003;3:303-9) In one new area: nanotechnology – – Understanding of cancer at the molecular level is progressing exponentially Nano-based devices and drugs for cancer and all diseases are increasing 68% increase in the clinical pipeline from 2005 130 nanotech-based drugs and delivery systems 125 devices or diagnostic tests – 39 (2006 Nanomedicine, Device & Diagnostic Report, National Health Information, LLC) And remember the automobile industry (Part 2) September 15, 2006 – Ford called for 44,000 job cuts – (The 3rd turn around in 5 years) Conceded 2nd place in the US to Toyota Does not expect to make a profit in NA until 2009 – Chrysler Group Would report a loss for this summer of $1.5 billion, more than double that anticipated September 20, 2006 – 40 DamlierChrysler cuts 14% of workforce The Traditional USA Way • Very large, tightly integrated, monolithic plants • Extremely efficient when they operate • Terribly expensive to start, stop or change 41 And remember the automobile industry (Part 1) “In the mid-1970s, anybody found driving a Japanese car in Michigan was in danger of ending up with a tire slashed or a door keyed. Today, mention one of the Big Three U.S. auto-makers -GM, Ford or DaimlerChrysler -- at a blue-collar Midwestern honky-tonk and you'll hear groans. Everybody in the Midwest these days is begging Honda to come into their hometown. It is no longer viewed as a "Japanese" company, but a "pro-Americanworker" corporation flush with jobs, jobs, jobs.” Douglas Brinkley, D (2006, July 18) “Hoosier Honda”, WSJ, A14 SHANGHAI -- Nanjing Automobile (Group) Corp., a Chinese state-owned car maker, said it is joining with two U.S. investment funds to build MG cars at a new plant in Oklahoma. 42 Fairclough, F (2006 July 12), WSJ, D5