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Medidata plans $86m IPO

By Phil Taylor , 28-Jan-2009

 

eClinical specialist Medidata Solutions has filed to list on the US Nasdaq exchange via an initial public offering that it hopes will raise $86m.

 

Medidata is making the bid despite the unfavourable economic environment which has seen global IPO activity fall to its lowest level since 2003, and now faces an intense period of activity, swallowing up senior management time and resources, as it works through the process.

 

That said, the company has enjoyed a period of strong growth, according to a prospectus filed with US Securities & Exchange Commission.

 

Medidata, whose flagship product is the Rave electronic data capture (EDC) and data management software, generated $86.3m in revenues, up 71 per cent over 2006 . And in the nine months ended September 30, 2008, it made almost as much ($84.8m), representing a rise of 38 per cent over the same period of 2007.

 

Nevertheless, in the prospectus Medidata said it has made operating losses in each year since 1999, with cumulative operating losses of around $38m at September 30, 2008.

 

The company now says it has 148 customers, including some of the top names in the pharmaceutical industry, , including 21 of the top 25 global pharmaceutical companies measured by revenue. Johnson & Johnson, AstraZeneca and Amgen accounted for approximately 15, 13 and 11 per cent, respectively, of its revenues in 2007.

 

The prospectus also notes that Medidata paid around $18.1m to acquire clinical trial planning software firm Fast Track Systems in March 2008. The company had previously not divulged the purchase price.

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