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Model N (MODN) Focuses on Life Sciences Market, Announces Buyout
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Model N (MODN - Free Report) recently announced the takeover of Deloitte’s life sciences pricing and contracting solutions business as well as underlying technology for $60 million in an all cash deal.
The acquisition, subject to customary and regulatory approval, is slated to conclude in late December 2020. The company stated that it will divulge more details regarding the transaction at its first-quarter fiscal 2021 earnings conference call. The buyout will not be accretive to the first quarter of fiscal 2021 performance.
The buyout will help Model N to further expand its presence in the life sciences vertical and boost its total addressable market by adding the pre-commercial segment, added the company. This is expected to bolster the top line in the long haul.
A few days back, Model N also unveiled new product updates as part of its Life Sciences Fall 2020 release to help customers to boost revenue growth and operational efficiency. The new capabilities include addition of "what-if analysis" functionality to its Government Pricing for Discount Reallocation offering. Moreover, Global Pricing Management module is incorporated with Volume Forecasts Management Module to improve forecasting abilities for the clients.
Abundant Market Prospects
Per Industry Research Report, worldwide revenue management system market is forecast to witness a CAGR of 10.7% between 2021 and 2026 to reach $29.9 billion. Growing demand for competitive pricing, and strict requirements to comply regulatory compliances are likely to drive demand for this market.
Model N is engaged in providing revenue management solutions primarily for life sciences and technology companies that includes solutions for pricing, quoting, regulatory compliance and rebates management.
The company has substantial growth opportunity in two verticals, as enterprises continue to shift away from legacy processes that were expensive and error prone. Model N’s revenue cloud solutions facilitate higher returns on investment and close gaps in the end-to-end revenue management process.
Further, COVID-19 crisis accelerated the digital transformation among enterprises especially for companies in life sciences vertical.
Worldwide cloud spending is expected to witness a CAGR of 15.7% between 2020 and 2024, and reach more than $1 trillion, per an IDC report.
These opportunities augur well for Model N. The company has presence in more than 120 countries and clinched deals from some of the biggest names in tech and pharma sectors like ON Semiconductor (ON - Free Report) , MicrochipTechnology (MCHP - Free Report) , AstraZeneca, Johnson & Johnson and Novartis.
In the fiscal fourth quarter of 2020, Model N’s cloud solutions were leveraged by Advanced Micro Devices (AMD - Free Report) to improve pricing, quoting, and rebating activities and generate more data-driven actionable intelligence into its channel.
Headwinds Persist
Coronavirus crisis-triggered sluggish spending across small and medium businesses owing to restricted economic activity, and weak job market are likely to put pressure on adoption of Model N’s revenue management software solutions in the foreseeable future.
Markedly, shares of the company have returned 4.7% year to date compared with the industry’s rally of 107.9%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Model N (MODN) Focuses on Life Sciences Market, Announces Buyout
Model N (MODN - Free Report) recently announced the takeover of Deloitte’s life sciences pricing and contracting solutions business as well as underlying technology for $60 million in an all cash deal.
The acquisition, subject to customary and regulatory approval, is slated to conclude in late December 2020. The company stated that it will divulge more details regarding the transaction at its first-quarter fiscal 2021 earnings conference call. The buyout will not be accretive to the first quarter of fiscal 2021 performance.
The buyout will help Model N to further expand its presence in the life sciences vertical and boost its total addressable market by adding the pre-commercial segment, added the company. This is expected to bolster the top line in the long haul.
Model N, Inc. Price and Consensus
Model N, Inc. price-consensus-chart | Model N, Inc. Quote
A few days back, Model N also unveiled new product updates as part of its Life Sciences Fall 2020 release to help customers to boost revenue growth and operational efficiency. The new capabilities include addition of "what-if analysis" functionality to its Government Pricing for Discount Reallocation offering. Moreover, Global Pricing Management module is incorporated with Volume Forecasts Management Module to improve forecasting abilities for the clients.
Abundant Market Prospects
Per Industry Research Report, worldwide revenue management system market is forecast to witness a CAGR of 10.7% between 2021 and 2026 to reach $29.9 billion. Growing demand for competitive pricing, and strict requirements to comply regulatory compliances are likely to drive demand for this market.
Model N is engaged in providing revenue management solutions primarily for life sciences and technology companies that includes solutions for pricing, quoting, regulatory compliance and rebates management.
The company has substantial growth opportunity in two verticals, as enterprises continue to shift away from legacy processes that were expensive and error prone. Model N’s revenue cloud solutions facilitate higher returns on investment and close gaps in the end-to-end revenue management process.
Further, COVID-19 crisis accelerated the digital transformation among enterprises especially for companies in life sciences vertical.
Worldwide cloud spending is expected to witness a CAGR of 15.7% between 2020 and 2024, and reach more than $1 trillion, per an IDC report.
These opportunities augur well for Model N. The company has presence in more than 120 countries and clinched deals from some of the biggest names in tech and pharma sectors like ON Semiconductor (ON - Free Report) , Microchip Technology (MCHP - Free Report) , AstraZeneca, Johnson & Johnson and Novartis.
In the fiscal fourth quarter of 2020, Model N’s cloud solutions were leveraged by Advanced Micro Devices (AMD - Free Report) to improve pricing, quoting, and rebating activities and generate more data-driven actionable intelligence into its channel.
Headwinds Persist
Coronavirus crisis-triggered sluggish spending across small and medium businesses owing to restricted economic activity, and weak job market are likely to put pressure on adoption of Model N’s revenue management software solutions in the foreseeable future.
Moreover, increasing competition in the revenue management systems’ market is a concern for this Zacks Rank #4 (Sell) company. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Markedly, shares of the company have returned 4.7% year to date compared with the industry’s rally of 107.9%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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