The pressure of pharmaceutical companies to restrict expenses leads to
continual pressure to limit indirect costs.  As these are real expenses
to universities, it is imperative that fair charges be levied against
sponsors from all agencies alike.  We have established an indirect cost
rate with the Federal Government for on and off-site research of about
50% on and 25% off.  As our drug studies are invariably conducted off
site in our affiliated hospitals, we charge the 25% rate.  We have
resisted all efforts by sponsors to trim these costs back even to the
point of stating (and meaning it) that we will refuse to do the study.
In no case has the sponsor refused.  This behavior suggests that
research directors of drug
firms who believe that the scientists/physicians of your institution can
generate the important
data they need, will not look elsewhere to save a few thousand
dollars in indirect charges.

On Fri, 20 Oct 1995, Annmarie Boduch wrote:

> I'm trying to find out how Universities & other non profits are handling
> the rate/amount of IDC they accept from for profit or pharmaceutical
 companies.
> We always hold to our approved federal rate - but lately the pharmaceuticals
> 0are not willing to pay - they state that they will only pay 20% or 30%
> on TDC.  I've also been hearing that the  universities accept lower rates for
> clinical trials (in general) than they do for research grants.  Please
> let me know.
>
> *Thank You!                                                   *
> *Annmarie Boduch                                              *
> *Director of Grants & Contracts                            *
> *Phone: 431-1200 ext 25 Fax:431-1234 xxxxxx@health.state.ny.us
>