Clinical Trial Failure Solution

Clinical Trial Failure Solution

Learn how your organization can benefit from Aon’s new insurance policy designed to tackle the financial uncertainties inherent in drug development, safeguarding the cost of running a clinical trial in the event the trial fails.

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Biotech companies are pioneers in the medical field, yet the path to bringing a new drug to market is full of challenges, not least of which are the financial risks associated with clinical trials. Securing funding for trials can be a significant hurdle, especially when navigating the dilemma of securing sufficient funds without giving up substantial equity or control over projects. Lenders and structured finance providers have traditionally shown a lower appetite for investment in this sector compared to others, largely due to the high-risk nature of drug development.

The Reality of Clinical Trials: A High Risk of Failure

  • Dependency On New Funding: Late-stage clinical research companies are particularly vulnerable, relying on new funding to support the progression of drug candidates through these pivotal phases.
  • High Risk Of Failure: The inherent risk of failure is staggeringly high; on average, less than 30% successfully advance from Phase II to Phase III.
  • Impact On Innovation: This precarious financial landscape directly stifles innovation. Without adequate funding, promising drugs may never reach the market, depriving society of critical, potentially life-saving treatments.

Note: A single successful drug development can cost as much as US$2.4B

A Novel (Clinical Trial Failure) Solution

Aon’s advanced solution is more than just an insurance policy; it represents a strategic tool redefining the landscape of biotech. It offers a comprehensive strategy for risk management, significantly lowering financial exposure during clinical trials. This acts as a safety net, bolstering companies with the confidence to venture into the unpredictable journey of drug development.

Retaining Equity, Control and Leadership

Importantly, it also minimizes the need for companies to give up equity or control in exchange for capital, ensuring that the visionaries behind biotech innovations can retain leadership of their projects.

The insurance will indemnify the insured up to the cost of the trial if there has been a measurable failure to achieve the trial parameters.

How Does the Clinical Trial Failure Solution Work?

This groundbreaking insurance solution addresses a critical gap in the biotech industry—protecting clinical trial investments from financial loss due to trial failure. Historically, such risks were deemed to a business risk, but this innovative approach now provides essential coverage.

Biotech companies are leading the charge in developing cutting-edge therapies, but clinical trials pose significant financial challenges. This solution is more than just insurance—it’s a strategic asset that reshapes how companies manage financial risk during the drug development process.

By minimizing financial exposure, this solution gives companies the freedom to pursue new treatments with greater confidence, knowing that their investments are protected.

Ideal client profile:

   Phase 1  Phase 2
 Cost of Trial  USD 3M - 20M  USD 5M - 20M
 Trial Length  1 year  2 years
 CRO' engaged  Yes  Yes
 Clinical Trial Protocol Written  Yes  Yes

*Clinical Reach Organization


To learn more about qualifications for the Clinical Trial Failure Solution or to request a quote, please fill out the contact box below, or email [email protected] and [email protected] directly.

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