Outsourcing to the right testing laboratory can give drug developers a competitive edge by maximising efficiencies and expediting the regulatory approval process.  But outsourcing often comes with the risk of stepping into an unknown and untested relationship.  

This risk is attenuated in the post-COVID-19 era which is characterised by disruption in the global pharmaceutical supply chain, causing delays and pushing up costs along the entire drug development continuum.  These are issues to which no-one seems immune.

Analytical testing is not a commodity, and very often laboratory customers are not entirely sure what they need or want, especially when it comes to navigating complex regulatory pathways and determining what specific types of toxicological testing may be required.  

Against this backdrop, choosing the right testing laboratory is more than a question of ticking the boxes on a procurement checklist (although that is an important part of the selection process).  To extract the best value from a laboratory outsourcing arrangement both scientific and financial decision makers must align on an investment strategy that is appropriate for their business, at their particular stage of development.  Deciding whether they are looking for a vendor or a partner will bring clarity to the process.

Vendor vs Partner
Vendor: Most laboratories can provide standardised testing services with clearly identified prices.  Some are quick to offer faster turnaround times or possible discounts based on volume.  This happens because most business relationships start out this way – as a potential transaction.  Vendors grow by constantly chasing the next deal, cutting their prices and margin to win in the short-term. 

Partner: However, what starts out as a simple transaction has the potential to lead to a symbiotic, long-term engagement between two organisations.  This happens when a customer has the time to explain, and the laboratory has the patience to listen, or vice versa!  Partners are not looking to win in the moment, but in the foreseeable future – sometimes doing so even at the expense of ‘now’. 

As opposed to a vendor, a potential laboratory partner will listen first and then plan, offering considered advice and insights on the best way forward before recommending specific actions based on a mutual understanding of the needs, requirements and pain points of the customer.  Ultimately the goal is to build a trusting and supportive relationship that flourishes over time and where the laboratory’s priorities and values are in sync with those of the customer.

Checklist vs. Dialogue
Most vendor selection checklists for outsourced laboratory testing focus on the need to verify factors such as accreditation, quality assurance, capacity, expertise, turnaround times and cost.  Many laboratories publish such checklists on their websites.  While these are critical questions to be answered when selecting a laboratory testing partner, they chiefly reflect the requirements of market entry rather than define a laboratory’s differentiating value proposition.  

Engaging in a deeper dialogue helps you to get to the laboratory’s core offer and establish whether you are talking to a potential partner who knows how to listen and plan in order to execute and deliver on your requirements, or a vendor who is possibly not so invested in your long-term growth and more focused on their short-term gain.

The Core Offer
Many laboratories - especially independents - may not have deep experience across their entire portfolio.  But they should be able to demonstrate a thorough understanding of what you need and discuss examples relevant to your objectives, referring to other client work as well as showcasing specific technical proficiencies and problem-solving abilities.  

Just as important is the non-scientific aspect of the relationship.  A potential laboratory partner should manage your expectations of doing business with them by talking you through their approach to project management and workflows, in addition to their client relationship methodology.  

Getting to the core of their offer through investing time in iterative dialogue will help you understand their priorities – but more importantly, whether or not they have understood yours.  They should demonstrate a thorough comprehension of your clinical and business objectives in the context of whether the toxicological assessment you need is compliance, regulatory or investigative.

Getting to the core of what’s being offered brings you closer to answering the question – vendor or partner?  Over time, as the relationship grows along each stage of the drug development continuum from discovery through preclinical testing to batch release of finished product, your laboratory testing partner will be best positioned to help you when new processes, changes, delays or decisions impact your business.  That is when the real shift happens, and you know you have invested in the right partner.

Contact us for a discussion on your regulatory toxicology testing needs.