Standard of Care Payment Overlap

April 21, 2010

Company News Release

Pharmaceutical and biotech clinical trials in the United States assume $1.1 billion in patient treatment costs that would normally be covered by commercial and public third party payers. These medical procedures are often a part of the treatment third party payers are required to provide their patients. Many pharmaceutical and biotech companies routinely include standard of care payment considerations in their clinical grant payment agreements with sites conducting oncology studies. However, this standard of care payment practice is usually not widely followed in other therapeutic areas, despite its broad acceptance in oncology. An analyses of US Phase I and III clinical studies, outside of oncology, shows that 22% of clinical trial procedures paid for by pharmaceutical companies would be covered by public and commercial third party payers as part of their standard of care treatment for these patients. Drawing upon data from GrantPlan®, the industry’s largest current database of clinical grants, and over 1 billion patient claims records, TTC and Trialytics determined that commercially funded Phase II-IVclinical trials are far more expensive than they need to be.