Model N filling gap in pharma software market
to adopt software services that prevent revenue leakage and
regulatory compliance exposure.
>Model N, which provides Revenue Management software - an integration of applications for pricing, contracts, compliance, rebates, fees and chargebacks - for the life sciences industry, has more than doubled its customer base over the past year, primarily from the pharmaceutical and medical technology segments.
As a result, the company has seen more than sixty percent growth in sales this year, adding to a record of significant sales growth year over year for the last three years.
"The strong adoption of our solutions by leading companies, particularly in pharmaceuticals, provides clear evidence of an accelerating trend in revenue management," said Zack Rinat, founder and CEO of Model N.
In particular, the company has noted a sharp increase in manufacturers using this technology.
"In 2005, over eighty percent of new customers have been pharmaceutical and biotech manufacturers and in the last six months, fifty percent of new customers added Model N to environments with applications from legacy vendors," the company said.
In the manufacturing segment, there is a growing software replacement market as legacy applications begin to limit manufacturers' ability to manage the growing convergence of commercial and government markets, and the increasing regulatory scrutiny.
Legacy applications are those that have been inherited from languages, platforms, and techniques earlier than current technology. Most manufacturers have legacy applications and databases that serve critical business needs. The challenge is to keep the legacy application running while converting it to newer, more efficient code that makes use of new technology and programmer skills.
The addition of Government Pricing and Medicaid Claims Processing to the Pharmaceutical Revenue Management suite has also helped to facilitate the uptake of this software with pharmaceutical manufacturers, said the company.
"Revenue Management as an end-to-end business process encompassing pricing, contracts, reimbursements and regulatory compliance, is emerging as a top strategic focus for life science companies," said Rinat.
