Blog - TD2 Precision Oncology

The Cost of Delay: Quantifying the Financial Impact of Inefficient Clinical Trial Start-Up

Written by TD2 Admin | February 5, 2025 at 1:57 PM

Clinical trial start-up delays are not just operational hurdles—they can result in significant financial losses. In oncology trials, where timelines and budgets are already under pressure, these delays can amplify costs and hinder market entry. Understanding and addressing these delays is critical for sponsors aiming to streamline operations and reduce expenses.

Understanding the Financial Impact of Delays

  1. Extended Operational Costs
    Each month of trial oversight during the start-up phase comes with significant costs. These include managing site relationships, vendor coordination, and meeting compliance requirements. Oncology trials, known for their higher complexity, cost between $600,000 and $8 million per month, depending on their scope and phase. Delays in site activation can stretch budgets unnecessarily, diverting resources from other critical activities. Any delay could cost sponsors millions in additional expenses.

  2. Lost Revenue from Delayed Market Entry
    Oncology drugs, especially those targeting specific patient populations, often have high market potential. Delays in trial progression mean delays in commercialization, translating to millions of dollars in lost daily revenue. For first-to-market or best-in-class therapies, these delays could also impact competitive positioning, leaving revenue and patient access opportunities unfulfilled.

  3. Increased Competition Risks
    Clinical trial delays give competitors a chance to advance their own therapies, potentially eroding market share by the time a delayed therapy reaches commercialization. In competitive therapeutic areas, every month of delay increases the risk of being outpaced by similar or alternative treatments.

Common Start-Up Bottlenecks

Despite the high stakes, start-up delays remain a persistent issue in oncology clinical trials. Some of the most common bottlenecks include:

  • Vendor Identification and Contracting Delays: Securing partnerships with laboratories, logistics providers, and other key vendors often takes longer than anticipated when initiated late in the process. This creates a ripple effect, delaying operational readiness.

  • Site Selection Inefficiencies: Without early site engagement, sponsors face prolonged timelines in assessing site capabilities, negotiating contracts, and onboarding investigators. These delays can stretch weeks into months.

  • Regulatory Document Preparation: Essential documents such as Investigator Brochures (IBs), Informed Consent Forms (ICFs), and Laboratory Manuals are often prepared too late, leaving insufficient time for reviews and revisions, resulting in compliance risks and delays.

Proactive Strategies to Minimize Delays

  1. Early Vendor Engagement
    Engaging vendors before regulatory approval ensures that essential resources are ready to deploy as soon as the trial is cleared to proceed. This proactive approach prevents bottlenecks caused by late-stage vendor contracting and allows for seamless trial progression. Vendors such as drug depots, laboratories, and clinical supply chains can align their timelines with the trial’s needs.

  2. Strategic Site Selection
    Optimizing site selection requires more than choosing high-performing sites. Sponsors must balance community-based facilities for broader patient access with academic research centers for specialized populations. Early engagement with sites and investigators helps establish relationships and ensures site readiness when regulatory approval is granted.

  3. Comprehensive Document Preparation
    Preparing regulatory and operational documents well in advance of submission reduces delays caused by last-minute reviews and revisions. Protocols, ICFs, Investigator Brochures, and operational manuals should be aligned with regulatory expectations early, ensuring a smoother path through the approval process and faster site activation.

  4. Pre-Screening and Site Readiness Assessments
    Conducting pre-screening evaluations of sites enables sponsors to identify potential logistical or operational challenges before they arise. This step fosters open communication with investigators and ensures that sites are equipped to meet trial timelines and enrollment targets.

  5. Aligning Start-Up Strategies with IND Filing
    By initiating key clinical trial activities, like those mentioned above, prior to IND submission, sponsors can ensure they are fully prepared to activate sites as soon as the FDA issues the “May Proceed” letter. This alignment reduces downtime between regulatory approval and first patient in, significantly improving efficiency and minimizing trial start-up costs.

Quantifying the Savings

Implementing these strategies can reduce clinical trial start-up timelines by 4+ months, saving sponsors millions in operational costs. For example, a trial costing $2 million per month could save $8 million or more simply by addressing start-up inefficiencies. Additionally, faster time to market allows sponsors to capitalize on revenue opportunities sooner, creating substantial financial advantages in the competitive oncology landscape.

Conclusion

The financial and operational impact of delays during clinical trial start-up cannot be overstated. By addressing common bottlenecks through proactive planning, sponsors can reduce costs, accelerate timelines, and improve trial efficiency. These strategies not only make trials more cost-effective but also help deliver potentially life-saving therapies to patients faster.

Learn more about TD2’s Clinical Trial Enabling Program and how it supports streamlined trial start-up.