[Skip to content]

.

Pharma 2020: Virtual R&D

Kate Moss

Session chair: Martin Ince

Reporter: Andrew Smith

Keywords

Biomarkers, Biosimulation, Collaboration, Live license, Nanotechnology, Pervasive monitoring


 


The current fashion among conference organisers is to include, at some point in the programme, an ‘inspirational speaker’. While attending clinical research conferences over the past few years, I have heard from astronauts, athletes and Antarctic explorers; they prompted admiration and interest, and sometimes inspiration on a purely personal level, but I have often struggled to connect these people’s achievements back to my own professional life. This keynote lecture, given towards the end of this year’s ICR conference, was entirely different in that it was both personally and professionally inspiring. In just half an hour, Kate Moss of PricewaterhouseCoopers (PwC) challenged us to suspend our natural scepticism and our mental and organisational silos, and offered us a glimpse into a possible future for drug development. In retrospect, that future seems as radical and different from how we work today as our modern ‘industrialised R&D’ would probably look to a pharmaceutical research physician from the early 20th century.


Kate’s presentation drew from the ‘Pharma 2020’ series of reports published by PwC over the past few years. These broadly argue that changes to the research environment and the global market for pharmaceuticals necessitate a significant change in the way pharma companies operate, and suggest one possible response to this.

The current model is broken

She started by describing the shift in decision-making from prescribers to payers and policy-makers, and the increasing importance of demonstrating value for money alongside safety and efficacy. While the global market for medicines is growing, it is also becoming increasingly heterogeneous, particularly in the developing world. Conversely, productivity in R&D is decreasing, the regulatory framework is getting tighter, and employee incentives don’t work in an increasingly team-oriented environment. Ultimately, the US market, which has arguably subsidised the rest of the world for many years, will no longer be able to do so. Kate showed us some well-known (but nonetheless depressing) graphs demonstrating increasing R&D costs, decreasing new approved medicines and the multi-billion dollar decrease in revenues due to patent expiry and generic competition over the next few years. All of these factors mean that pharma needs to transform how it operates to adapt to the future landscape.

In response to this, Kate predicted a sharpening of the current innovative/generic division, with some organisations specialising further in ‘commoditised’ products (eg, new line extensions and branded generics) aiming to achieve high volume sales by managing symptoms while others take a more innovative, physician-led approach to cure conditions by develop high-cost therapies with increased risk-sharing between producers and payers. She concentrated on the latter segment for the remainder of her presentation.

The pharmaceutical industry currently spends just over $80bn on R&D, and this is expected to grow to over $200bn by 2020. However, as much as 40% of current spending is on line extensions for existing products. Kate called for a significant change in how R&D is conducted. We are already seeing collaboration increase between industry, academia, regulators, government and healthcare providers, but this will need to increase significantly to achieve the “seismic shift” of transformative change that Kate thinks is necessary.

Portrait of Kate Moss of Pricewaterhouse Coopers (2)

Virtual R&D

Having given us a detailed description of the problem facing us all, Kate outlined some aspects of a possible solution. The most far-reaching scientific proposal was the development of a single validated computer model of the molecular and cellular components of the human body. Her vision is to use such a model to simulate the effects of medicinal molecules on specific disease targets to identify which targets are relevant, and predict ADME, side effects, dosage and the balance between efficacy and safety. Doing this in a virtual environment could accelerate the early stages of drug development, complement (or replace) animal studies, and give greater confidence for first-in-human and proof of concept studies, while reducing operational costs.
While this might sound implausible, Kate gave examples of three organisations that are already working toward this sort of goal:
  • The Step Consortium (www.europhysiome.org), which is based upon viewing the human body as a single complex system.
  • The Living Human Project (www.livinghuman.org), which has started to develop an in silico model of the human musculoskeletal system.
  • The Physiome Project (www.physiome.org.nz), which aims to develop integrative models at all levels of biological organisation, from genes to the whole organism.

Pervasive patient monitoring

Kate spoke of the need to shift our mindset from treating symptoms to curing and ultimately preventing disease. This is already happening in areas such as gene therapy and regenerative medicine, and nano-therapeutics is also an exciting area, working to deliver therapeutics (or even tiny repair ‘robots’) to specific cells or organs.

Biomarkers are already being developed and used in diagnostics and increasingly to measure the impact of treatment. Once validated as reliable surrogates, they can be used extensively to select patient sub-populations and to monitor the course of a clinical trial. This becomes even more compelling when combined with nanotechnology; Kate envisioned implanted nano-devices equipped to measure biomarkers and communicating with wireless networks to provide real-time feedback. This form of pervasive monitoring could be used to record data into an EDC system, improve compliance, provide feedback on adverse events or even trigger delivery of medication.

Expediting development

The next part of Kate’s presentation discussed ‘live licensing’: a concept that’s been around for a few years, and extends the model already used in developing some oncology compounds. This requires much closer collaboration between all stakeholders (ie, pharma and regulator, but also healthcare providers, payors and patients) much earlier in a product’s development. All need to agree on a development programme that will provide information that each party will require at the appropriate point in the value chain, including outcome data and broad assessment of economic impact (ie, including indirect costs of delivery and benefits to society). This should be agreed as early as possible (eg, once the sponsor has confidence in the basic mechanism of action), to ensure that the development answers the right questions for all involved.

Rapid studies in ‘virtual’ human models and tightly-specified patient populations would follow to demonstrate a level of confidence in safety and efficacy. Kate suggested that this could be done using adaptive methodology across 20-100 patients, and take around 1 year. Data from this phase would be submitted to regulators automatically and assessed to (hopefully) result in a ‘live license’ to launch the product for limited clinical use in that population. This could be as early as 18 months after beginning first-in-human studies.

Pervasive monitoring would be used to collect data from all patients receiving the therapy, which would flow back into the regulators’ database. As data is accumulated, confidence in safety and efficacy should increase, enabling the license to be extended automatically to cover broader patient populations and indications as appropriate.

This model would have a significant impact on the financial profile for a product’s lifecycle, with faster time to market lowering the initial investment and automated indication extensions producing stepwise increases in revenue. As we move beyond the era of the ‘blockbuster’, this sort of profile is more attractive than the current model, where high initial costs require even higher revenues in the last few years of patent protection. Lower pre-launch costs could also make therapies for rare diseases etc. more economically viable.

Collaborate or die

The technological changes Kate proposed are huge, and it would be impossible for even the largest of ‘big pharma’ companies to attempt this single-handed. As we are seeing with the development of biomarkers and more formal projects such as the FDA Critical Path Initiative, the EMEA Roadmap to 2010 and the EU/EFPIA Innovative Medicines Initiative, large collaborations across industry and with regulators can work. Kate called for this to be extended many-fold to reinvent the way we develop new treatments: research and usage would become essentially seamless, and data would be generated, captured, integrated and analysed to enable the most effective use of healthcare, both clinically and to society as a whole. This would be underpinned by common data standards and predictive biosimulation models. Clearly, pharma cannot do this alone.

Kate characterised innovation as a “team sport”, where all decision-makers from investors and manufacturers through to prescribers, patients and payors must be confident that the evidence generated answers the questions that are important to them. Pharma will need to collaborate extensively and transparently across an integrated healthcare value chain to deliver medicines that people will want to pay for. To do this, pharma will need to stop trying to do everything itself and work with a network of organisations to build knowledge and understanding about the human body and the pathophysiology of disease.

Conclusion

Ultimately, though, it doesn’t matter if Kate and her team turn out to be entirely wrong in their predictions (although I expect that not to be the case!) What matters is that we as a profession are challenged out of our mindset of incremental improvements in a business model that is ultimately breaking down as a result of socio-economic change. It takes someone to zoom out to look at the picture in the biggest possible terms to chart a course out of our post-blockbuster doldrums. Her specific predictions were stimulating, but moreover her vision was grand without seeming utterly impossible, and the overall effect was truly inspirational.


 

Portrait of Kate Moss of PricewaterhouseCoopers
Kate Moss is Director in Advisory Practice and Clinical Research R&D Expert at PricewaterhouseCoopers.
Martin Ince is a science journalist and broadcaster.
Andrew Smith is Editor of Clinical Research focus.
Investors in People
The premier organisation for professionals in all aspects of clinical research