Is the industry really ready for DCT?

You can’t open LinkedIn without reading about Decentralized Clinical Trials. You would be led to believe that DCT is already ubiquitous and will be some sort of panacea for what ails the industry.

Companies like Science 37, Medable, Curebase and Thread have raised ~$350 million, $506 million, $57 million and $50 million respectively. With all of this money being thrown around, you would assume that a huge portion of trials are being run through these DCT platforms. Coming from a site network that runs phase 2-4 trials across just about every therapeutic area, this simply is not the case.

The overwhelming majority of trials we see are still relying on the same vendors, using the same strategies and same technology. On the ground, life is very much the same as it has been for years now. We are hearing some of these companies preach “site-centricity” but we have yet to see full scale execution in any meaningful way that involves sites. I have to believe that these companies are either disingenuous or simply failing in their mission.

Let’s look at the only easily accessible example of a large DCT company and their financials.

Science 37’s 2022 Q1 adjusted gross profit was $3.2 million.  Adjusted EBITDA was $(44.1) million for the year ended December 31, 2021, compared to $(27.0) million in the same period in 2020. Keep in mind that this company carries a valuation of well over a billion dollars. Meanwhile their stock price has dropped from $10/share to $3/share in what you would think would be the height of demand for DCT technology.

I’m no economist but something simply doesn’t add up. Is the industry not ready for DCT yet or have the promises of DCT simply been inflated? Is the current trend of very well funded tech platforms sustainable? At some point, it would seem that something has to give.

Even at the site level, I have attempted to implement some less all-encompassing DCT solutions and there seems to be a complete lack of interest on the part of sponsors. Whether it be a financial concern or the perception of increased risk, there seems to be very little excitement in attempting to reach a broader patient population and ease the burden of their participation.

Ultimately, who is driving the push for DCT? Sponsors don’t yet seem prepared to fully embrace it. DCT companies do not seem particularly profitable, even with millions in funding. Sites don’t fully even understand what DCT is.

Are we truly ready for DCT?