Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital

 
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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
Digital Disruption in Biopharma
 How digital transformation can
 reverse declining ROI in R&D

ICONplc.com/digital
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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

Contents

Introduction                                                  3
The potential of transformative technologies:
Big Data, AI, Blockchain, Cell-on-a-Chip,
Advanced Statistical Modelling, Quantum Computing             7
Finding the right partner for the right digital expertise     12
Artificial Intelligence                                       13
Advanced Statistical Modelling                                17
Organ-on-a-Chip, Blockchain
and Quantum Computing                                         18
Clinical trial of the future                                  20
Conclusion: What’s needed to move forward                     22
About the ICON Digital Disruption survey                      24
Further reading                                               25
References                                                    26

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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

Introduction

In 2018, the mean projected return on new drug
research and development (R&D) investments by a
dozen large cap biopharma firms fell to 1.9 percent,
from 10.1 percent in 2010, according to an ongoing
analysis by Deloitte (1). That return is already well
below the benchmark 10-year US Treasury bond,
and on pace to plunge below zero by 2020,
an unsustainable trend by any definition.
While declining projected sales contribute,
R&D expense is the biggest factor.

$1.1                                             What can be done to bring                pharma business operating models
                                                 R&D costs under control                  and improve R&D productivity & ROI in
                                                                                          a variety of ways, including automating
                                                 and restore ROI to
billion in 2010                                  sustainable levels?
                                                                                          processes, making efficient use of
                                                                                          massive new data sets, and supporting
Mean cost of bringing                                                                     early decision-making with increasingly
a new asset to market:                          Many industry experts see a need to       powerful predictive analytics and
                                                transform the way clinical trials are     statistical models.
                                                conceived, designed and conducted.
                                                This transformation will rely heavily     Robotic Process Automation (RPA)
                                                on harnessing the power of digital        will streamline or eliminate many costly,
                                                technologies. Whilst earlier waves        time-consuming and error-prone
                                                of digital disruption such as the         manual steps. Big Data techniques
                                                advent of the web, social media           will aggregate and scrub massive,
                                                and smartphones were highly

$2.1
                                                                                          disparate new data sets, making them
                                                disruptive in many industry sectors,      available for efficient use. Artificial
                                                they were much less so for pharma,        Intelligence (AI) will filter and process
                                                with disruption largely confined to       Big Data far faster than any human,
billion in 2018                                 internal communication and external
                                                patient and market facing channels.
                                                                                          generating insights supporting early
                                                                                          decision-making with increasingly
with clinical trials, especially late trials,   However, the current wave of emerging     powerful predictive analytics and
making up a large and growing                   digital technologies now offer real       statistical models. (1), (3), (4), (5)
share (1), (2)                                  opportunity to significantly disrupt

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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

This digital transformation is already               Which of the following best describes your organisation’s
underway and likely to accelerate,                   current use of AI or big data analytics?
according to an ICON survey of
almost 350 executives, managers                    326 qualified responses
and professionals in biopharma and
                                                   Notable responses:                                              31
medical device development firms.
Nearly 80 percent of respondents                       W
                                                        e plan to use AI and big data analytics, but
said their firm plans to use, or is using,             have not yet begun                                                     86
AI or Big Data approaches to improve                   W
                                                        e are piloting AI and big data analytics        66
R&D performance. Within five years,
                                                       W
                                                        e do not use AI and big data analytics and
two-thirds of survey respondents said
                                                       have no plans to do so
they will pilot or use these analytic
technologies in select programmes,                     W
                                                        e use AI and big data analytics in select
and another 20 percent plan to use                     development programs
them in all development programs.                      W
                                                        e have a comprehensive program in place
                                                       for incorporating AI and big data analytics
                                                                                                                             74
The umbrella category of AI and                        into our development programs                          69
advanced analytics was seen as
the digital technology with the most
potential to improve R&D productivity.
Close behind were identification
of biomarkers and use of EHRs and                    Which of the following best describes where you believe
clinical registries, which are likely to             your organisation’s use of AI or big data analytics will be
use AI tools to optimise efficiency                  in five years?
and effectiveness in various ways.                                                                                      13
                                                   328 qualified responses                                    31
In addition, respondents ranked                    Notable responses:
targeting biomarkers as the therapeutic
                                                       We
                                                        will make more use of AI and big data
approach most likely to benefit from
                                                       analytics in select programs
digitally enabled technologies -
perhaps reflecting the need to find                    We
                                                        will pilot AI and big data analytics
                                                                                                        66                         149
actionable correlations in masses                      We
                                                        will use AI or big data analytics in all
of data from disparate sources.                        development programs
Following closely were gene therapies,                 We
                                                        do not anticipate using AI or big data
customised therapies targeting specific                analytics
disease stages, comorbidities and
                                                       We
                                                        will make less use of AI and big data
other specific patient characteristics.
                                                       analytics                                                   69

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How Digital Transformation can reverse declining ROI on R&D

 But can AI and other digital technologies improve R&D
 productivity enough to restore ROI to sustainable levels?
 The evidence that it might is tantalising...
For example, trials that use biomarkers to select patients who have a high                       These findings dovetail with our
probability of responding are three times more likely to progress from Phase 1                   projections of the global need for R&D
clinical trials to approval, and AI is perfectly suited to identify such opportunities (6).      productivity improvement. Based on
Similarly, last year, the FDA quickly approved an AI-powered device for detecting                industry trends over the past decade,
diabetic retinopathy in primary care offices, signalling growing regulatory support              we project that an overall productivity
for such technologies (7).                                                                       increase of 20 to 25 percent is needed
                                                                                                 to restore R&D returns to sustainable
Our survey respondents were optimistic that such developments will significantly                 levels by 2030.
increase R&D returns. Two-thirds said they have the potential to increase
productivity by 26 percent or more, with 22 percent expecting 51 to 99 percent
and 5.5 percent expecting 100 percent or more. Less than one percent expects
no improvement.

Industry optimistic that digital transformation
may restore ROI on R&D to sustainable levels

                                 Effect of increasing clinical trial efficiency on R&D ROI

    15

    10

    5

    0

    -5

   -10

   -15
                2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2029 2030

                           R&D ROI              T-Bond              R&D +10%             R&D +20%              R&D +25%

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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

 How much do you anticipate digital technologies improving                      Harnessing these new technologies
 R&D productivity?                                                              will involve significant organisational
                                                                                change. Already, they have resulted in
326 qualified responses                                                         the breaking down of internal functional
Breakdown of responses:                                                         silos or formal reorganisation, or
                                                              Count   Percent   both, at 70 percent of respondents’
                                                                                firms. Many respondents see a need
 Mid double-digit improvement (26%-50%)                        127    39.0%     to develop essential new skills and
                                                                                practices internally, and to partner with
 Low double-digit improvement (10%-25%)                        87     26.7%     outside experts, including technology
 High double-digit improvement (51%-99%)                       72      22.1%    firms and CROs, to develop digital
                                                                                technology capabilities.
 Single-digit improvement (1%-9.9%)                            19      5.8%
                                                                                As detailed in our previous white
 Double or more (100%+)                                        18      5.5%     paper, Improving Pharma R&D
 No improvement                                                 3      0.9%     Efficiency: The Case for a Holistic
                                                                                Approach to Transforming Clinical
                                                                                Trials (8), digital transformation requires
                                                                                a holistic organisational approach,
                                                                                using technology symbiotically and
                                                                                strategically, rather than just adopting
                                                                                a particular technology or disparate,
                                                                                bottom-up projects.

                                                                                Nonetheless, harnessing the benefits
                                                                                of these innovative technologies
                                                                                requires understanding how they work.
                                                                                This paper is a guide on the pathway to
                                                                                digital transformation. In it we discuss:
                                                                                ––The potential of specific
                                                                                  transformative digital technologies
                                                                                ––The impact of these technologies
                                                                                  and how they might transform trial
                                                                                  operations and multiply ROI on R&D
                                                                                ––The resources, expertise and
                                                                                  organisational changes required
                                                                                  to harness these technologies

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Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

The potential of transformative technologies: Big Data, AI,
Blockchain, Cell-on-a-Chip, Advanced Statistical Modelling,
Quantum Computing

                                                                                           Big Data
                                                                                           Big Data is the raw material of digital
                                                                                           transformation - and the volume and
                                                                                           complexity of health data collected
                                                                                           by providers, insurers, government,
                                                                                           researchers and industry is doubling
                                                                                           every 12 to 14 months (9). According
                                                                                           to a 2014 report by consulting firm IDC,
                                                                                           153 exabytes (one exabyte = one billion
                                                                                           gigabytes) of data were produced in
                                                                                           2013, and an estimated 2,314 exabytes
                                                                                           will be produced in 2020, representing
                                                                                           an overall rate of increase at least
                                                                                           48 percent annually. This constituted
                                                                                           about one-third of data generated from
                                                                                           all sources in 2013, and healthcare’s
As new digital technologies continue to emerge,                                            share has grown since. If this year’s
they converge to have a greater impact collectively,                                       data were printed on paper, the stack
than any one technology can achieve individually.                                          would reach to the moon and back
                                                                                           six times (10).
For example, combining historical information from EHRs with imaging, genetic
and molecular test data is driving the development of highly targeted oncology             Needless to say, the hardware required
treatments, such as CAR-T and other cell therapies, giving hope to patients                to store and process this volume of
resistant to more conventional approaches. Similarly, data from mobile sensors             data is also growing exponentially.
and apps make possible new treatments for Parkinson’s and other neurological               According to a 2016 estimate by the
disorders. Moreover, they enable the creation of novel endpoints that matter to            Michigan Institute for Data Science at
patients with chronic conditions, such as the ability to work, cook and participate        the University of Michigan, the number
in other daily life activities.                                                            of transistors required to process the
                                                                                           more than 20 petabytes of genomic
In a market that is increasingly driven by outcomes and personalised therapies,            data and 10 petabytes of neuroimaging
mastery of digital technologies will be essential to generating sales, and improving       data currently produced is about 1011,
the efficiency and reducing the cost of clinical trial operations. Here we discuss the     an increase of two orders of magnitude
potential of emerging technologies to increase returns on pharmaceutical R&D,              from 2014.
how they interrelate and a framework for successfully integrating them.
                                                                                           The bandwidth needed to move it is
                                                                                           rising even faster. While the potential
                                                                                           value of this data grows with its
                                                                                           volume, its value declines quickly with
                                                                                           time. The ability to expand processing
                                                                                           and analytic infrastructure to keep up
                                                                                           with this growth will be essential to
                                                                                           maximising its value (11). Creating and
                                                                                           maintaining this capability represents
                                                                                           a significant challenge for pharma
                                                                                           sponsors.

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How Digital Transformation can reverse declining ROI on R&D

Sources of Big Data; their potential and limits
Unquestionably, Big Data is diverse in its sources and quality, and massive in                              Below are some of the major data
its volume. As a result, it takes considerable effort to evaluate, normalise and                            sources, with a brief analysis of their
structure it so that it can be reliably used for analysis. In our industry survey,                          potential value and limits for improving
this was identified as a top challenge in adopting digital technologies. The nature,                        clinical R&D performance.
sources and quality of data also influence its value and how it can be used.

Different types of Big Data

 Data Type              Major Sources                 Uses                                          Potential Impact

 Structured             –– Current and past           –– Spot safety, efficacy and performance      –– Real-time detection of safety and data quality
 clinical data             clinical trials               issues quicker                                issues reduce delays, data loss, study failure risk
                        –– Registries                 –– Inform clinical trial design               –– Earlier go/no go and adaptive change decisions
                        –– Peer-reviewed studies      –– Identify promising sites                      shorten development
                                                      –– Synthetic control and platform trials      –– Fewer protocol revisions cuts time and cost
                                                      –– Track real-world performance               –– Fewer low-performing sites speeds recruitment
                                                                                                    –– Fewer patients for some trials cuts time and cost
                                                                                                    –– Guide label expansion, new products,
                                                                                                       portfolio assessment
                                                                                                    –– Evidence for approval and payment

 Traditional clinical   –– Clinical EHRs              –– Identify patient needs, characteristics,   –– Realistic inclusion criteria reduce amendment
 data                   –– Labs                          locations                                     cost and delays
                        –– Imaging                    –– Inform trial design, site selection,       –– Identifying potential patients targets recruiting
                                                         recruitment strategy                       –– Patient-centric studies speed recruiting,
                        –– Pharmacies
                                                      –– Replace or supplement controls                reduce attrition
                        –– Insurance claims
                                                         in some cases                              –– Fewer low-performing sites speeds recruitment
                                                      –– Real-world evidence of need                –– Real-world evidence of patient benefit supports
                                                         and performance                               approval and payment decisions

 Emerging real-         –– Mobile clinical monitors   –– Continuous, real-time clinical             –– Denser, real-time data detect efficacy and safety
 world data (RWD)       –– Patient-reported              trial monitoring                              signals sooner
                           outcome and self-          –– Virtual visits                             –– Reduced patient burden aids recruitment
                           assessment apps            –– Patient engagement                            and retention
                        –– Internet of Things,        –– Compliance reminders                       –– Engagement and compliance reminders
                           including smartphone                                                        reduce data loss
                                                      –– Virtual endpoints
                           and commercial                                                           –– Biomarkers increase approval chances
                           monitors                   –– Identify patient needs, characteristics
                                                                                                    –– Virtual endpoints more valuable to patients
                        –– Digitied imaging studies   –– Biomarker development
                                                                                                    –– Real-world evidence of patient benefit supports
                        –– Genetic studies            –– Real-world evidence of need
                                                                                                       approval and payment decisions
                                                         and performance
                        –– Proteomic and other                                                      –– New therapy targets expand portfolio,
                           molecular studies          –– Identify new therapy targets
                                                                                                       support targeted medicine

 Supplemental data      –– Weather, environmental     –– Monitor conditions that might affect       –– Filtering out environmental “noise” may increase
                           conditions,                   therapy performance                           study sensitivity, reducing time and sample size
                           economic, education,       –– Guide culturally appropriate protocol      –– Culturally appropriate study design and therapies
                           demographic, language,        development                                   more improve recruitment and retention
                           location records
                                                      –– Guide more-effective therapy design        –– Real-world effectiveness increase supports
 8                                                                                                     approval and reimbursement decisions
Digital Disruption in Biopharma How digital transformation can reverse declining ROI in R&D - ICONplc.com/digital
How Digital Transformation can reverse declining ROI on R&D

Structured clinical data                                                                    Traditional clinical data
These include data from current and past clinical trials, real-world evidence               These include data from clinical EHRs
(RWE) from registries and peer-reviewed studies.                                            as well as from labs, pharmacies and
                                                                                            insurance claims.
The quality and value of structured clinical data vary depending on collection
method and rigor. Clinical trial data are most reliable and can be used for a wide          Clinical EHRs are designed to support
range of purposes that can improve clinical study efficiency. For example, data             clinical practice rather than research,
captured automatically from currently active trials can quickly identify unanticipated      and there are wide and unpredictable
safety issues, and flag anomalies that might indicate protocol deviations early             variations in how and what data are
enough to prevent costly study delays or failures. They can also help make go/              captured. As a result, EHR data are not
no-go, adaptive study changes earlier, and help close out studies faster,                   typically useful for establishing efficacy
potentially cutting weeks or months off overall timelines.                                  in clinical studies, except for some rare
                                                                                            or serious conditions that preclude the
Structured clinical data from previous trials can be very helpful in streamlining           use of controls. However, EHR data are
current trial protocols by predicting potentially high-performing study sites, which        increasingly valuable for guiding study
is invaluable for shortening study timelines and keeping trials on schedule. In some        design and exclusion criteria, as well as
cases, historical trial data may be used as a synthetic control arm in an active            identifying promising study sites. They
trial, though this requires careful matching of trial populations and data collection       are also proving powerful for identifying
processes to ensure data comparability.                                                     patients at high risk of developing
                                                                                            chronic diseases, particularly when
Platform trials - in which a single control arm is used to test multiple treatment          merged with genetic data. Moreover,
approaches, and is sometimes run by different sponsors - is a variation on the              they are helpful in producing RWE
structured clinical data approach. Both reduce the number of patients to be                 for value-based payment models.
recruited and increase the proportion of patients receiving treatment. Historical
trial data may also be used to guide new research and suggest possible label                Lab, pharmacy and insurance
indication expansion.                                                                       information are similarly limited,
                                                                                            but have similar uses.
Registry data are increasingly required by regulators to evaluate real-world use
of therapies as a condition of approval. While these data alone generally are not
reliable enough to support approval, they help identify possible label extensions
and make the case for reimbursement - particularly when combined with other
real-world data (RWD) from EHRs, pharmacies and insurers. Similarly, broader
registries operated by governments or speciality groups can help identify quality
issues at a population level, such as failure rates for knee or hip implants. They
can also study low-incidence complications, such as intraocular infections after
cataract surgery. Finally, they can help identify unmet patient needs to guide
future product development decisions, and may help establish evidence of
efficacy for payment.

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How Digital Transformation can reverse declining ROI on R&D

Emerging RWD sources                               Mobile data also can monitor therapy        Emerging supplemental,
These include mobile clinical monitors,            compliance and alert patients if they       environmental, economic
patient-reported outcome apps,                     miss a dose, helping to protect trial       and social data
internet of medical things such as                 data integrity and reducing the need        These include everything from
motion detectors, as well as imaging,              for extra recruits to compensate            environmental data to insurance status,
genomic and molecular studies.                     for noncompliance. Mobile devices           education and income markers that
                                                   can further improve trial efficiency        may influence therapy response and
Mobile monitors and apps range                     by reducing clinic visits and costs,        study success. Such data can be
from commercial devices, such as                   and improving patient recruiting and        critical for properly interpreting
Fitbits and cell phone accelerometers,             retention by making studies more            mobile monitoring data.
to medical-grade heart, blood pressure             convenient. Like traditional clinical
and glucose monitors. For use in                   data, mobile monitoring and apps            For example, high pollen counts or
clinical studies, these devices must               create a detailed picture of everyday       pollution can affect asthma or COPD,
be rigorously validated. Moreover,                 life that is extremely useful in guiding    possibly producing a blip in response
they must address potential concerns               development decisions and supporting        that might otherwise be attributed
such as placing a monitor on someone               value-based payment.                        to a trial medication. Supplemental
other than the patient, as well a                                                              information helps filter out this kind
device issues such as cybersecurity,               Similarly, genomic, proteomic and           of noise in datasets, potentially
battery life and usability, durability             imaging studies provide detail on an        reducing the time and size of trials.
and even aesthetics in everyday                    unprecedented level that can be used
life. For example, a trial patient may             for diagnosis, monitoring and therapy       Similarly, general educational level and
remove a monitoring device that is                 development. The potential power of         health literacy can have a significant
uncomfortable, clashes with clothing               analysis of mass imaging datasets can       effect on therapy compliance. This
or attracts unwanted social attention.             be illustrated by an algorithm developed    can be useful during trials to interpret
                                                   by Google with the Aravind eye hospital     data and is important for designing
Addressing these issues requires                   network in India that not only screens      therapies that are more likely to be
special expertise across several                   for diabetic retinopathy with high          successful in the real world.
disciplines, including device design,              reliability, but also accurately predicts
patient engagement and digital                     cardiovascular disease risk based
endpoint validation, all of which are              on retinal images.
expensive. However, the payoff can
be significant, as the volume and                  Genomic and proteomic data are
granularity of data from mobile devices            particularly valuable for finding
can increase the statistical power of              biomarkers of diverse diseases
subject data, allowing shorter periods             including cancer that can dramatically
to establish efficacy.                             increase response by specifically
                                                   targeting markers. The potential for
                                                   these technologies for improving
                                                   the efficiency of new molecule
                                                   development is difficult to overstate,
                                                   and has the potential to dramatically
                                                   increase approval rates, multiplying
                                                   R&D efficiency.

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How Digital Transformation can reverse declining ROI on R&D

Survey results
Top factors favouring digital technology adoption

Improve return on R&D investments                   3.23
                                                                       The increased data granularity,
Improve product safety and efficacy                 3.08               specificity and volume of Big Data have
                                                                       the potential to increase clinical R&D
Reduce clinical trial costs                         3.05               efficiency. Harnessing this potential
                                                                       requires significant infrastructure,
Post-market regulatory monitoring                   2.87               expertise and judgment to determine
                                                                       when and how to best deploy it.
Compete in targeted medicine markets                2.84

Payer demands for RWE                               2.83

Recruiting patients for clinical trials             2.68

Get closer to patient communities                   2.61

Get closer to prescriber communities                2.57

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How Digital Transformation can reverse declining ROI on R&D

Finding the right partner for the right digital expertise

                                                                                         data innovation and new methods of
                                                                                         obtaining and tracking relevant clinical
                                                                                         and socioeconomic data, to improve
                                                                                         patient interfaces. Analysing complex
                                                                                         data sets and integrating data from
                                                                                         disparate sources were among the
                                                                                         top-three digital challenges sponsors
                                                                                         identified in our survey, reflecting
                                                                                         their tech-focused needs. More than
                                                                                         55 percent of survey respondents
                                                                                         said they were partnering with tech
                                                                                         companies, making it the number-one
                                                                                         partner choice.

                                                                                         While technology giants are providing
                                                                                         necessary infrastructure and support
                                                                                         today, and will likely generate innovations
Creating and maintaining this continually expanding data
                                                                                         that will transform clinical R&D tomorrow,
gathering and processing capacity represents a significant                               data and expertise – which are more
challenge for all types of healthcare enterprises, including                             specific to current trial processes and
pharma sponsors. Indeed, lack of internal resources and                                  needs – are also essential to transform
understanding of how to develop and apply digital technology                             clinical trial efficiency.
were the leading barriers to adoption in our industry survey.
                                                                                         For example, data on how trial sites
Healthcare currently accounts for almost 18 percent of the US economy and is in          have performed in the past can help
the double digits in much of the developed world. Thus, the size of the opportunity,     select sites that are more likely to
in addition to its complexity, has attracted the attention of the world’s tech giants.   successfully recruit patients. Reducing
According to Deloitte, six of the 10 largest technology companies are diversifying       the under-recruitment challenge is
into healthcare (12).                                                                    critical to cut the cost of opening
                                                                                         sites that never see a patient, and
Significant ventures include (13):                                                       to keep studies on track (14). Specific
––Alphabet’s Google Ventures invests about one-third of its capital in                   data on past trial designs and how
  approximately 60 healthcare and life sciences start-ups ranging from genetics          they performed also help streamline
  to telemedicine, while Google DeepMind Health focuses on structuring data              current trial protocols involving similar
  from various sources using machine learning. Verily, its life sciences division,       conditions or test therapies. Applying
  is collaborating with major research institutions, including Duke University           advanced statistical and trial design
  and Stanford Medicine, on Project Baseline, a genetic study to improve our             to specific study needs was the other
  understanding of chronic diseases.                                                     top-three challenge sponsors identified
                                                                                         that requires the skills and knowledge
––Apple is focusing on mobile data and patient interface technologies, and also          of CROs and other clinical trial experts.
  collaborates with researchers on projects for detecting heart rhythm problems
  and Parkinson’s symptoms using Apple devices.                                          In our experience, identifying and
                                                                                         addressing these current study needs
––Amazon recently launched Comprehend Medical to mine and decode
                                                                                         using Big Data not only improves
  unstructured data in medical records using machine learning.
                                                                                         trial efficiency significantly in the near
Pharma sponsors are partnering with these and other large tech companies                 term, but also builds competence
to leverage their core expertise in digital science. They are also looking to the        and confidence in applying digital
burgeoning ecosystem of smaller tech companies to develop potentially disruptive         technology needed to tackle more
 12                                                                                      complex, longer-term needs.
How Digital Transformation can reverse declining ROI on R&D

Artificial Intelligence

                                                                                               ICON survey results
                                                                                                Digital technologies with the
                                                                                                most potential for improving
                                                                                                R&D productivity

                                                                                                Advanced analytics and AI            3.26

                                                                                                Biomarkers                           3.23

                                                                                                Clinical registries                  3.15

                                                                                                EHRs                                 3.14

                                                                                                Demographic data                     2.96

                                                                                                Patient self-assessment
                                                                                                                                     2.86
                                                                                                and PRO apps
If Big Data is the raw material of digital transformation,
AI is the engine that sponsors rely on to make use of it.                                       Mobile sensors                       2.86

AI-powered capabilities, including pattern recognition and evolutionary modelling,              Virtual trials                       2.85
are essential to gather, normalise, analyse and harness the growing masses of
data that fuel modern therapy development. Indeed, AI and advanced analytics                    Cells or organs on chip              2.75
were viewed as the digital technology with the most potential to improve clinical
                                                                                                Internet of Medical Things           2.74
R&D productivity in our industry survey.
                                                                                                Quantum computing                    2.72
AI has many potential applications in clinical trials both near- and long-term.
These range from automating routine study data entry functions, to analysing                    Environmental sensing data           2.62
EHR data to find suitable candidates and sites for clinical studies, to monitoring
and encouraging patient compliance with study protocols, to adaptive dose-                      Social media data                    2.53
finding, to discovering and modelling potential new molecules and therapies.
                                                                                                Blockchain platform                  2.51
 But what, exactly, is AI? And how can it be developed
 and used to transform clinical trials, while adhering to
 the rigorous scientific validity standards required
 to demonstrate drug safety and efficacy?
First coined in 1956 by researcher John McCarthy, the term “Artificial Intelligence”
covers a wide range of hardware and software that exhibit behaviour that appears
intelligent (15). Currently, all industrial applications of AI are considered ‘narrow’ (or
‘weak’) AI in that they typically focus on a particular task such as natural language
processing, image processing, voice processing, machine learning and robotics.
‘General’ (or ‘strong’) AI is an anticipated (far) future state in which AI technology
has broad-based and integrated cognitive abilities comparable to a human being.
These differing terms, applications and levels of maturity can lead to confusion
and a large amount of hype (16).

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How Digital Transformation can reverse declining ROI on R&D

Here we outline different                          ––Assessing potential data entry errors,      This entails a culture and skills
approaches to AI and the                             such as duplicated or missing               change within the workforce,
                                                     data points                                 though it’s positive for workers
benefits of each.
                                                                                                 since it relieves them of drudgery in
                                                   ––Detecting potential protocol
                                                                                                 favour of exercising and developing
                                                     deviations, such as emergence
Expert systems                                                                                   higher level, and higher value, skills.
                                                     of a non-random variation trend
Some of the earliest and most widely
used AI applications are expert                    ––Forwarding clean data to the trial          Not only does robotic process
systems that use rules-based                         master file, and alerting trial monitors    automation yield immediate
algorithms to mimic specific human                   to anomalies                                efficiency benefits, but also, it lays
expertise. One example is decision-                                                              the groundwork for incorporating
support trees for routine diagnostic               Immediate efficiency benefits of robotic      massive data sets from EHRs, mobile
tasks, such as differentiating between             process automation include:                   devices, automated image scanning,
bacterial and viral respiratory infections                                                       and individual patient genomic and
                                                   ––Reduced manpower - eliminating the
for prescribing antibiotics, which are                                                           molecular data. As such, it is a
                                                     need for manually transferring data
built into virtually every EHR drug-                                                             fundamental stepping stone on the
                                                     from clinical sites to trial master files
ordering module. However, rules-based                                                            path to harnessing the transformational
                                                     typically reduces clinical research
systems require humans to codify                                                                 power of AI to make use of Big Data.
                                                     assistant (CRA) and trial monitoring
knowledge and write unambiguous                      headcounts by two full-time
rules, which limit their use to addressing                                                       Yet, as straightforward as all this
                                                     equivalents or more
relatively uncomplicated and well-                                                               may sound, accomplishing these
defined problems.                                  ––Reduced errors and delays -                 things, while ensuring trial data and
                                                     automatic forwarding of validated           process integrity, requires a deep
                                                     data eliminates the possibility of          understanding of study processes
Robotic process automation
                                                     data entry errors, as well as delays        and ends. Insights from CROs and
Variations on this approach have                     signing off on incoming data by             others with extensive experience
significant value in improving clinical              human reviewers                             are critical to designing and testing
trial efficiency in the realm of robotic                                                         process automation to avoid the
process automation (RPA). Robotic                  ––Reduced data loss – automatic               classic computer programming
process automation (RPA) are                         data analysis detects anomalies             problem – GIGO, or ‘Garbage In,
specialised computer programs that                   much sooner and more reliably than          Garbage Out’. In other words,
automate and standardise processes                   manual review, and alerts human             automating inadequate processes
based on rules-based algorithms.                     CRAs to do what they do best,               only produces more mistakes faster.
Of itself , RPA has no ‘intelligence’                which is to investigate site issues
– however, increasingly it is typically              and get sites back on track
integrated with other AI technologies
to create faster automation, and it’s              Without fundamentally changing
organizational impact is proving to be             existing trial processes, robotic
significant. In clinical trials this includes      automation can cut days or weeks
automatically:                                     off of trial timelines simply by reducing
                                                   human error and delays due to
––Capturing routine clinical data,
                                                   business hours, weekends and time
  such as patient vital signs
                                                   off. Redesigning trials to take full
––Collecting operational data, such as             advantage of robotic processes can
  drug administration dose and time                cut even more by refocusing CRAs
                                                   and trial monitors on a consultative
––Testing data to flag safety issues,
                                                   role supporting trial sites.
  such as an out-of-range lab result

 14
How Digital Transformation can reverse declining ROI on R&D

Linking trial stages                     protocols might affect development            Deep machine learning is essentially
Another way to leverage robotic          timelines, as well as prospects for           the same process, with the exception
process automation is linking            approval and market prospects.                of the extent to which humans prime
processes across study stages.           Experienced partners, such as CROs,           the machine. In traditional machine
This involves considering the final      bring the needed expertise to the table       learning, a human may extract the
outputs – which are data supporting      to implement automated end-to-end             features it wants the machine to
regulatory approval and commercial       study planning and integrate it with          process in great detail, and the
payment – in the design of every study   holistic portfolio management.                optimisation algorithm the
step and automatically adjusting those                                                 machine applies is limited.
steps when a change occurs.              Machine learning and
                                         deep machine learning                         The greater processing power of
For example, results midway through      Moving up a step on the AI complexity         modern computers enables deep
a Phase 2 study suggest that a new       ladder are machine learning and deep          machine learning, in which the device
cancer therapy may be much more          machine learning. Machine learning            itself extracts features from a raw
effective in a patient subgroup with     is potentially more flexible than rules-      data set and has multiple layers of
a particular biomarker. Changes          based expert systems because it does          optimisation processing modelled
in the target population and how         not rely entirely on programmers to           on how neurons process information.
it is assessed will require not only     provide a fully worked out set of rules,      This allows the machine to discover
amendments to the ongoing study          but allows the computer to improve            patterns in the data that do not depend
phase, but also in Phase 3 design.       its performance, or its “learning,”           on the insight or expertise of a human
Moreover, the endpoints and data         based on training.                            programmer, making deep learning
needed for regulatory and payment                                                      more powerful for assessing images
approval will need to be reassessed.     Typically, the machine is trained using a     and other extremely complex
                                         large input data set, which it processes      data sets (15).
Automatically linking study              according to an initial algorithm that
requirements from end-to-end             assigns weights to various factors and
can significantly reduce the delays      mathematically transforms them, using
and manual effort required to fully      processes such as random forests,
                                                                                       For example, AI deep
implement a protocol amendment.          Bayesian networks and support                 learning machine techniques
It changes everything from the forms     vectors, to predict an outcome (15).          have improved the formulae
needed to collect new information, to                                                  for predicting the power of
the data analysis and charts required    The predicted outcome is then                 intraocular lenses needed
to present results to regulators and     compared with the known outcome for           to get close to uncorrected
insurers. However, designing linked      the training data set, and the algorithm
stage automation also requires a deep    is altered and run again, with better
                                                                                       20/20 vision after cataract
understanding of conventional trial      predictive results guiding changes            surgery.
processes, as well as regulatory         at each round. This iterative process
and payer evidence requirements.         proceeds until predictive power
                                         plateaus. The algorithm may then be
Beyond the benefits for an individual    tested against an unknown data set to
development program, adopting a          determine its predictive accuracy, and
linked process automation approach       the training set may be enlarged and
facilitates portfolio management         diversified to further improve accuracy
decisions by allowing developers to      and extend its range.
model how specific changes in study

                                                                                                                                  15
How Digital Transformation can reverse declining ROI on R&D

Historically ophthalmic                            for diabetic retinopathy, which has          patient attrition and the need to
surgeons achieved an                               the potential to dramatically improve        over-recruit to offset projected
                                                   screening for this potentially blinding      subject or data losses.
                    80%                            condition by primary care physicians (7).
                                                   Alphabet’s Deep Mind program has
                    success rate                                                                Newly discovered genetic
                                                   developed a similar capability and can
                    reaching one-half
                    dioptre of target              even predict the risk of heart attack        and molecular biomarkers
                    refraction.                    and stroke from retinal images alone.        make possible identification
                                                   Image analysis is also used to assess        of compounds more likely
However, a recently designed AI-based              oncology pathology and heart rhythm
formula has pushed that to
                                                                                                to reach market (6).
                                                   with accuracy that rivals or exceeds
                                                   experienced clinicians.

                                                   AI has many near- and long-term              Limits of AI
                                                   applications for improving clinical
                                                                                                Still, AI has its limits and must be
                                                   research returns (18), including:
                                                                                                handled with care to ensure it is
                                                   ––Patient identification -                   producing valid, reliable results. Its
  90% for all patients                               AI capabilities, including natural         unstructured nature can lead to results
                                                     language processing and association        that are not useful or defy causal
                                                     rule mining, help extract data from        logic. For example, one algorithm for
                    98%                              unstructured medical records to find
                                                     patients suitable for clinical studies,
                                                                                                diagnosing tuberculosis (TB) by reading
                                                                                                chest x-rays considered not only the
                    for patients with
                    near-sightedness                 and can help identify those most           x-ray image but also film metadata,
                                                     likely to complete a trial                 assigning greater weight to images
                                                                                                taken by mobile machines used in
The most common pre-surgery                        ––Site selection - Helps identify
                                                                                                hospitals than by stationary machines
refractive error.                                    sites with the right patients and
                                                                                                in clinics – apparently having “learned”
                                                     capabilities to successfully recruit
                                                                                                that patients with lung complaints
As the data set has grown, the formula               and retain patients
                                                                                                severe enough for hospitalisation
has become more accurate for less                  ––Patient monitoring and support             were indeed more likely to have TB.
common errors, says its inventor,                    - AI enabled mobile devices help
Warren Hill (17). He notes that the                  identify when patients deviate from        Various ways of opening the machine
neural network approach is more                      protocols and send reminders               learning “black box,” including flagging
efficient than rules-based methods                                                              the data the machine reviews and
for modelling any system that is                   ––Cohort composition - AI helps              the weights it assigns, have been
not completely understood – which                    identify biomarkers to find patients       proposed (19). However, given the
includes just about everything                       most likely to show benefit from           conservative nature of clinical research,
in clinical medicine and research.                   a particular dose or combination           in addition to the cost and complexity
                                                     therapy                                    of developing AI solutions, it is likely
The power of AI for revolutionising                                                             to be a long time before their full
clinical practice is already evident.              Ensuring that the right patients and sites   potential can be realised. As with Big
For example, the FDA last year                     are recruited for studies goes a long        Data, collaboration with outside tech
approved the first AI diagnostic                   way toward preventing costly delays.         experts and clinical study process
device that requires no clinician                  Improved patient protocol compliance         experts will be critical for success.
intervention to detect and refer                   and denser data sets may reduce

 16
How Digital Transformation can reverse declining ROI on R&D

Advanced Statistical Modelling

                                                                                           than traditional pair-wise, dose-finding
                                                                                           studies in predicting what doses
                                                                                           will succeed in pivotal studies.
                                                                                           This two-step method first chooses
                                                                                           candidate dose-response curves
                                                                                           based on pre-clinical and other existing
                                                                                           evidence, and then models early phase
                                                                                           data to determine Phase 3 dosing (23).
                                                                                           Considered an adaptive analytic tool,
                                                                                           when combined with adaptive Phase
                                                                                           2/3 designs, it can significantly reduce
                                                                                           study sample sizes and shorten
                                                                                           timelines.

                                                                                           Other potential uses of advanced
                                                                                           statistical modelling include
Applying advanced statistical models to the greatly expanded                               establishing synthetic control arms
                                                                                           and shared control arms for platform
range and granularity of data available through Big Data and                               trials, in which multiple therapies are
AI technologies has the potential to significantly improve                                 evaluated against one control group,
clinical R&D productivity in a variety of ways. These include                              often by different sponsors.
modelling and simulations, and cumulative analysis using
sequential, Bayesian and meta-analytic techniques.                                         As with AI and Big Data, advanced
They are particularly useful for conducting smaller                                        statistical modelling requires a high
                                                                                           degree of technical and clinical
studies that are gaining importance as therapies                                           study-specific knowledge. Powerful
increasingly target limited populations.                                                   integrated statistical packages, such
                                                                                           as ADDPLAN neo, are also essential
Sequential analysis uses accumulating data, sometimes over long periods of time,           to design and execute such adaptive
with the objective of ending a trial as soon as sufficient data have accumulated.          studies, as they require extensive
On average, this leads to a smaller overall sample size, and allows ongoing                modelling in advance to validate - and
research into rare conditions such as sickle cell anaemia (20). Bayesian statistics,       ongoing analysis to guide - adaptive
which refine analysis based on accumulating data, are well-suited for these kinds          changes, such as expanding samples,
of studies. They’re also useful for designing paediatric studies that can reliably         reallocating patients among study
guide dosing across a wide range of age and weight variables (21).                         arms, or early closure for either
                                                                                           success or futility. Partnering with a
Meta-analysis may also be used to generate starting points for such research,              CRO, or other entity with extensive trial
and to support evidence for studies where randomising a control group is not               experience, can help ensure studies
possible for ethical reasons. In addition, computer models of pharmacodynamic              are designed to produce sound results
activity and disease state progression may be useful for assessing how future              that will be acceptable to regulators
populations impact patient needs, as in a 30-year predictive study commissioned            and insurers.
by the American Diabetes Association (22). Similar approaches are useful for
sponsor portfolio assessment.

Perhaps the most mature and widely used statistical modelling application directly
used in clinical trials is predicting optimal dosing ranges prior to Phase 3 trials -
a critical step in avoiding late-stage product failures (22). Methods such as MCP-
Mod (or Multiple Comparisons & Modelling) have been shown to do a better job
                                                                                                                                      17
How Digital Transformation can reverse declining ROI on R&D

Organ-on-a-Chip, Blockchain and Quantum Computing

                                                                                       For example, an artificial liver has
                                                                                       been developed that features three-
                                                                                       dimensional scaffolds in a cell culture
                                                                                       chamber perfused at physiological
                                                                                       oxygen levels and stress. This
                                                                                       promotes growth of hepatocellular
                                                                                       aggregates that structurally and
                                                                                       functionally resemble hepatic acini
                                                                                       that remain viable for up to two weeks.
                                                                                       Such a system would be valuable for
                                                                                       testing the way drug candidates affect
                                                                                       the liver, which is the organ most often
                                                                                       responsible for drug metabolisation.

                                                                                       Organs-on-chips have been developed
                                                                                       for lungs, kidneys and gut tissues.
                                                                                       Similarly, a body-on-a-chip, including
While Big Data, AI and advanced statistical models are all in                          several organs, has been developed
active use in clinical R&D, several new digital technologies                           to assess how drugs might interact
are on the horizon with potential to transform the industry.                           across organ systems. While the
We outline a few of these below.                                                       technology may one day dramatically
                                                                                       reduce the cost of pre-clinical
Organ-on-a-Chip - A major contributor to low clinical R&D productivity is a lack       development and reduce the risk
of robust preclinical models for gauging the potential efficacy and toxicity of drug   of human trials, it requires additional
candidates. Animal models can be informative, but the results often do not translate   development and validation before
to humans. Cultured human cells are of limited use because they generally lack         it can be practically use. This will
physiological function and are removed from their circulatory support system,          require significant collaboration among
making it difficult to assess drug efficacy, toxicity and organ interaction.           engineers, biologists and clinicians (24).

Organ-on-a-chip and body-on-a-chip are in development to address these issues.
The technology uses micromanufacturing techniques, such as photolithography,
to create a microfluidics environment on a silicon chip that mimics in vivo
conditions. These chips are then populated with differentiated human
cells in physiologic arrangement.

 18
How Digital Transformation can reverse declining ROI on R&D

Blockchain - Data integrity                 Blockchain technology allows for                Quantum computing - Led by
and transparency are essential to           complete transparency of data,                  several governments, and big
maintaining trust in clinical R&D and       which has immense potential                     technology companies such as IBM,
ensuring data are properly interpreted      within clinical trials. With blockchain,        Microsoft, Google, Alibaba and Intel,
and analysed. At the same time,             there is an audit trail built into              there has been significant investment
maintaining patient confidentiality is      transaction of data, which allows               into developing quantum computing
an ethical and legal requirement. Within    for verification of the original source         technology over the last several years.
clinical trials, patient data is the most   of the information being transacted,
notable item of transactional nature        as well as the ability to detect any            Quantum computers perform
between networks such as healthcare         attempts to tamper with it.                     calculations using linear algebra
institutions, patients, and regulators.                                                     to manipulate matrices of complex
                                            Blockchain allows for greater data              numbers (‘qubits’) - effectively
Blockchain technology which is              availability. When all data is shared           connecting in multiple dimensions.
essentially a decentralised ledger          openly within a network, issues with            This enables quantum computers to
system that is fully transparent and        data systems interoperability are               conduct vast numbers of computing
immutable – has been shown to               reduced, and opportunities open                 calculations simultaneously, whereas
provide a web-based framework               up new possibilities for using that             conventional computers must work
that allows patients and researchers        data. For example, availability and             through calculations linearly, one
access to their own data. It allows for     accessibility of patient information            at a time. This makes quantum
user confidentiality, protecting patient    could be used for patient feasibility           computers much more capable of
privacy during exchange of data             analysis and population studies.                solving complex problems, involving
between parties.                            Moreover, blockchain allows                     multiple connections among multiple
                                            researchers to submit queries                   data points, much, much faster. For
                                            for data that are stored off chain,             example, quantum computers can
                                            protecting patient privacy. Despite             break in a few weeks encryption based
                                            the potential benefits, further                 on factoring very large numbers that
                                            functionality will need to be added (25).       would take conventional computers
                                                                                            millions of years (26). Many problems
                                                                                            in assessing enormous data sets
                                                                                            can take advantage of this nearly
                                                                                            inconceivable leap in computing power.

                                                                                            Although some applications have
                                                                                            begun to emerge (e.g. secure quantum
                                                                                            communications networks), currently
                                                                                            the hardware and software to support
                                                                                            quantum computing will require years
                                                                                            of development before it is widely
                                                                                            available for application in clinical
                                                                                            trials. However, given its potential
                                                                                            to revolutionise computing, industry
                                                                                            executives should monitor
                                                                                            this technology.

                                                                                                                                       19
How Digital Transformation can reverse declining ROI on R&D

Clinical trial of the future

Future clinical trials that                        Quantum analysis of masses                 Studies are planned using digital heart
make full use of digital                           of genomic and proteomic data              monitors and a custom patient app
technologies will look very                        combined with years of medical             to monitor patients at home, greatly
                                                   records reveal biomarkers for five         expanding the potential patient pool
different at each stage of                         new heart failure subtypes. Quantum        beyond the five percent currently
development – and may                              modelling quickly develops and             involved in clinical studies. Study
have a much higher chance                          assesses candidate molecules               site costs are also cut by nearly half.
of approval at lower cost.                         specifically targeting the identified      Continuous monitoring backed by
Just imagine:                                      pathways. Then, they determine the         reminders to follow the protocol
                                                   best candidates for synthesis and          nearly eliminate protocol deviations.
                                                   testing based on a virtual population      The higher data density and lower loss
                                                   using empirical physiology models          reduce the number of patients needed
                                                   developed with AI.                         for the trial and send early efficacy and
                                                                                              safety signals for go-no go decisions
                                                   Organ-on-a-chip using cells with the       (27), (28)
                                                                                                        .
                                                   target pathways are developed to test
                                                   the activity of the compound in the        Three of the five compounds advance
                                                   heart, followed by body-on-a-chip to       in an adaptive study design that
                                                   assess systemic risks. The top five        seamlessly rolls from Phase 2 to
                                                   candidates are validated for clinical      Phase 3. Automated data collection
                                                   studies, complete with preliminary         and analysis provide a robust dataset
                                                   information on likely dose response.       meeting newly established regulatory
                                                                                              standards for digital studies that leads
                                                   AI analysis of electronic records
                                                                                              to approval for three new drugs, a
                                                   identifies study candidates in five
                                                                                              success rate of 60 percent, or six times
                                                   countries, including those most
                                                                                              the current average. The entire process
                                                   likely to successfully complete a trial.
                                                                                              from discovery to approval takes
                                                   Analysis of previous site performance
                                                                                              less than five years – half the current
                                                   helps recruit investigators. Electronic
                                                                                              average – yielding better treatments
                                                   patient education tools, connected
                                                                                              for more patients sooner, and better
                                                   with live support speaking local
                                                                                              returns on research investment.
                                                   languages, help recruit patients.
                                                   Trial recruitment goals are reached
                                                   on schedule.

 20
How Digital Transformation can reverse declining ROI on R&D

“Machine learning and other technologies
are expected to make the hunt for new
pharmaceuticals quicker, cheaper and
more effective. Its potential applications are
numerous and potentially game-changing.”
ICON survey respondent

                                                                                                        21
How Digital Transformation can reverse declining ROI on R&D

Conclusion: What’s needed to move forward

Harnessing digital technology                       How important are the following factors in driving
to transform clinical trials will                   your organisation’s adoption of digital technology?
require sponsors to develop or
                                                   323 Number of Qualified Responses*
acquire a range of capabilities.
                                                   Breakdown of responses:
Beyond that, it may fundamentally
change the way sponsors are
organised and integrate R&D into                  100%
                                                                                                                                        0 1   2       3       4
the overall enterprise. Critical steps              80%
for moving forward include:
                                                    60%

1.	Identifying and developing                      40%
   operational and IT expertise and
                                                    20%
   capacity. Given the rapid growth
   of IT science and sheer computing                 0%
   capacity required, supplementing
                                                              R&D investments
                                                              Improve return on

                                                                                  R&D investments
                                                                                  Improve return on

                                                                                                      trial costs
                                                                                                      Reducing clinical

                                                                                                                          RWE of Value
                                                                                                                          payer demand for
                                                                                                                          Accommodate

                                                                                                                                              markets
                                                                                                                                              targeted medicine
                                                                                                                                              Complete in

                                                                                                                                                                  safety and efficacy
                                                                                                                                                                  Improve product

                                                                                                                                                                                        requirements
                                                                                                                                                                                        monitoring regulatory
                                                                                                                                                                                        Meet post-market

                                                                                                                                                                                                                communities
                                                                                                                                                                                                                Get closer to patient

                                                                                                                                                                                                                                        communities
                                                                                                                                                                                                                                        to prescriber
                                                                                                                                                                                                                                        Get closer
   internal capacity with partnerships
   with firms specialising in IT, as well
   as those experienced in clinical
   trial automation, are likely the most
   productive choice.
2.	Developing statistical expertise.                                                                                                                                                          Weighted Average
   Once again, the highly technical
   nature of statistical analysis –                 Improve return on R&D investments                                                                                                                           3.23
   particularly paired with adaptive trials
                                                    Recruiting patients for clinical trials                                                                                                                     2.68
   and data-driven techniques such
   as developing and validating virtual             Reducing clinical trial costs                                                                                                                               3.05
   study endpoints – suggests a need
   for partnering with firms specialising           Accommodate payer demand for RWE of value                                                                                                                   2.83
   in these activities.
                                                    Compete in targeted medicine markets                                                                                                                        2.84
3.	Developing global reach.
                                                    Improve product safety and efficacy                                                                                                                         3.08
   The growing need to target specific
   population needs and to comply                   Meet post-market monitoring regulatory requirements                                                                                                         2.87
   with national regulations makes
   clinical development an increasingly             Get closer to patient communities                                                                                                                           2.61
   international enterprise. Partnering
                                                    Get closer to prescriber communities                                                                                                                        2.57
   with global research firms provides
   the expertise and resources needed
   to accomplish the task.
4.	Managing change. Successfully
    harnessing digital technology requires
    training and often organisational
    change. Sponsors must be prepared
    to rethink and reorganise their
    businesses to make the change.

 22
How Digital Transformation can reverse declining ROI on R&D

 How has your move to digital technology affected the
 way your organisation operates and is organised?
328 Number of Qualified Responses
Breakdown of responses:
                                                                         77                                     70
  Both breaking down functional silos and
   reorganisation across functions
  Breaking down internal functional silos,
   but no reorganisation
  No effect on operations or the organisation
  Reorganisation but little effect on                                   96                                      85
   functional roles

 How would you rate the following as potential barriers
 to adopting digital technologies at your organisation?
322 Number of Qualified Responses*
Breakdown of responses:

100%
                                                         0 1     2   3   4

80%

60%

40%

20%

 0%
       Lack of internal     Lack of internal   Internal resistance   Lack of payer        Lack of regulatory
       understanding of     resources to       to change             understanding of     support for digital
       digital technology   develop and apply                        digital technology   technology
       potential            digital technology                       potential            transformation

                                                                                          Weighted Average

Lack of internal understanding of digital
                                                                                                      3.23
technology potential
Lack of internal resources to develop and apply
                                                                                                      2.68
digital technology
Internal resistance to change                                                                         3.05
Lack of payer understanding of digital technology potential                                           2.83
Lack of regulatory support for digital technology
                                                                                                      2.84
transformation
                                                                                                                                                                       23
How Digital Transformation can reverse declining ROI on R&D

 How important are the following challenges in developing
 digital technology capabilities?                                                                                            About the
323 Number of Qualified Responses*                                                                                           ICON Digital
Breakdown of responses:                                                                                                      Disruption survey
100%
                                                          0 1    2   3   4                                                   In May and June 2019 ICON
 80%                                                                                                                         surveyed industry leaders across
                                                                                                                             N America and the EU to share
 60%                                                                                                                         their insights on the application
                                                                                                                             of AI in Pharmaceutical R&D.
 40%                                                                                                                         Of the 350 qualified responses,
 20%                                                                                                                         97 respondents were C-Level
                                                                                                                             or Executive (VP or Senior VP).
  0%                                                                                                                         Respondents provided responses
       Data Storage and    Norming and        Creating a one     Analysing complex   Applying advanced Working with          to quantitative pre-defined survey
       processing capacity integrating data   source interface   data sets           statistical and trial researchers and
                           from multiple                                             design to specific    study sites       questions as well as providing free-
                           sources                                                   study needs                             form qualitative written responses.

                                                                                            Weighted Average
 Data Storage and processing capability                                                                  2.82
 Norming and integrating data from multiple sources                                                      3.19
 Creating a one-source interface                                                                         3.13
 Creating Analysing complex data sets                                                                    3.25
 Applying advanced statistical and trial design to specific
                                                                                                         3.18
 study needs
 Working with researchers and study sites                                                                2.87

 24
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