Pharmaceutical NEWS - Summer 2007

Tailor-made to fit

The clients of Lancaster Laboratories are an extremely diverse group, with companies of all sizes involved in virtually every aspect of the life science field. The challenges faced by these companies on any given day or week are also very diverse, depending on the type of product they are working on and where that product falls in the drug development cycle. That is why at Lancaster Laboratories we have built what we believe to be the most comprehensive range of technical capabilities and regulatory expertise available in contract analytical services, encompassing the areas of chemistry, biochemistry, microbiology, molecular biology, and virology. But when it comes to delivering these services, we recognize that “one size does not fit all.” That’s why we’ve developed a three-tiered model for service delivery that can be tailored to meet the strategic needs of our clients.

One: Fee for Service
The first tier of service delivery is fee-for-service, the traditional outsourcing model in which companies choose to contract with us to perform an analysis or complete a project according to agreed upon terms and conditions. This model fits the needs of many of our clients, who outsource to us because they don’t have sufficient headcount, capacity, expertise, equipment or time to accomplish the task or because the projects fall outside their core competencies.

Tier Two: FTE Approach
The second tier is the full-time-equivalent (FTE) approach, which provides dedicated full-time employees to work on client-determined priorities at our laboratory facility using our space, instruments, and systems. This model works successfully for clients who can identify a consistent portion of work that is sufficient to employ a dedicated team for a set time period. Essentially, this model takes the outsourcing relationship from a series of projects to identifying and establishing an outsourcing program. This transition to establishing a program enables us to deliver very significant cost savings to our clients because of the longer-term commitment and full utilization of employees.

Over the years, we have successfully managed many FTE projects with duration and services customized to client needs. For example, we have set up FTE programs with 4 full-time employees working on a project lasting only 3 months to one with 18 people working on development and validation projects for a year and a half to one with a seven-person team working for 5 years on a portfolio of client-designated products.

Clients considering this approach sometimes have a “fear of commitment” or a concern that they won’t get their money’s worth if they can’t fully utilize the FTEs. To allay this concern, we provide detailed utilization reports and frequent communication to ensure that the client gets full value from the program. We also work closely with clients to forecast utilization and allow some variability in headcount based on the forecasts.

Tier Three: PSS at Client Site
Lancaster Labs’ Professional Scientific Staffing (PSS) program provides the third tier of service delivery. In this model, we provide fully trained Lancaster Labs employees who work at client sites on client-determined projects for periods of more than two years.

Clients choose this model when they have space and equipment but not the staff to perform the work and need to have the activities performed on site. PSS at the client site not only provides a variable workforce in a managed service approach, but it also results in a tremendously more productive and motivated workforce than the use of traditional temporary employees. (See the Q&A on page 3 for more information on the program.)

Our overall objective is to provide our clients with the most comprehensive analytical services available in the industry and to deliver them in the most effective and flexible manner possible. We know that you face tremendous challenges in the areas of speed to market, regulatory hurdles and cost control. We want you to know that Lancaster Laboratories, your most trusted lab partner, is ready and willing to tailor-make the right solution for you. We also want you to know that whether it is a single sample submission or a major FTE program, we greatly appreciate your business and will work hard to earn your trust every day.