Model N Stock

Model N, Inc. (Model N) provides cloud revenue management solutions for life sciences and high tech companies.

The company's software helps companies drive mission critical business processes, such as pricing, quoting, contracting, regulatory compliance, rebates and incentives. With deep industry expertise, Model N supports the complex business needs of the world's leading brands in life sciences and high tech, including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and Microchip Technology.

The company's expertise in cloud-based revenue management solutions, combined with the company's knowledge of the life sciences and high tech industries, has enabled the company to develop software designed to meet the unique, strategic needs of these industries, such as managed care and government pricing for life sciences companies and channel incentives management for high tech companies. Model N Revenue Cloud transforms the revenue lifecycle into a strategic, end-to-end process aligned across the enterprise. The company's industry specific solution suites - Revenue Cloud for Life Sciences and Revenue Cloud for High Tech - offer a range of solutions from individual products to complete product suites.

Products

The company provides solutions that span the organizational and operational boundaries of functions such as sales, marketing, and finance and serve as a system of record for crucial revenue management processes including pricing, quoting, contracts, rebates, incentives, channel management, reporting and regulatory compliance. The company's solutions are purpose-built for the life sciences and high tech industries and are designed to work with enterprise resource planning (ERP) and customer relationship management (CRM) applications. The company's solutions enable real-time pricing, contract management, deal management, quoting, and channel incentives management, including rebates, incentives, and regulatory compliance.

The company's Revenue Cloud suites comprise multiple applications, which are integrated to work together but are flexible enough to be deployed individually. For example, when deployed as an interconnected suite, the company's solutions allow prices that are set up in the price management process to flow into the quoting process. Similarly, closed deals are captured in contract management and can be synchronized with ERP systems and into regulatory reporting as required by government agencies. The company's solutions provide critical data such as prices, quotes, contracts, incentives, and rebate claims that are typically not available in other enterprise systems. The company's solutions can also provide customers predictive revenue insights necessary to optimize sales and marketing investments and offers, as well as customer profitability.

Revenue Cloud for Life Sciences - The company's suite of revenue management solutions deliver end to end workflow, visibility and control across the enterprise and integrate with front-office products (e.g. CRM), as well as back-office products (e.g. ERP). This helps life science companies improve revenue and operational efficiency while adhering to government regulations as they create and execute contracts with their customers.

The company's integrated suite of solutions includes the following products:

Global Pricing Management. Minimizes price erosion of products in international markets due to competitive pressures and government mandate throughout the product lifecycle. Enables a streamlined pricing process by consolidating information into a single system of record, which provides users' access to accurate and up-to-date information. Provides an in-built International Reference Pricing (IRP) simulation and price controls, product launch sequence optimization and tracking and forecasting of prices and sales among other features.

Global Tender Management. Improves revenue regionally and globally by enabling opportunity segmentation and targeting, optimal bid pricing and post-award tracking to manage the tendering lifecycle through automation and maximizing award value.

Provider Management. Manufacturers can effectively manage and execute complex institutional contracts with Providers (Hospitals, IDNs, GPOs). This product helps minimize revenue leakage and improves operational efficiency by allowing the manufacturer to set up contracts using structured pricing and price alerts for each product and customer, implement the contracts and allow price look up, resolution and monitoring in end to end workflows enabled by analytics to drive contract compliance. This product calculates fees to be paid to wholesalers and GPOs, as well as incentives to providers and ensures price-tier compliance and minimizes rebate overpayments.

Payer Management. Minimizes revenue leakage and noncompliance of complex contracts with Payers (Pharmacy Benefit Managers (PBMs)/Plan Sponsors). Significant revenue leakage can happen without proper handling of rebate requests from PBMs. Payer Management is an end-to-end industry-leading payer management solution, which can help end revenue leakage in payer rebating processes and ensure adherence to complex government pricing regulations.

Government Pricing. Supports Federal government-mandated calculations and reporting requirements for average and minimum prices achieved by manufacturers across their product portfolio through various channels. Optimizes revenue and reduces the risk of fines and other penalties due to non-compliance with regulatory requirements.

Medicaid. Improves compliance with regulatory requirements and ensures payment of rebate claims on a timely basis and at correct rates for government Medicaid programs, while helping manufacturers minimize revenue leakage due to overpayment. Leverages robotic process automation to avoid repetitive, manual, work and the associated costs and potential data errors for the company's customers.

Validata. Enables manufacturers to validate, summarize and analyze prescription-level information in connection with processing of various forms of rebates to ensure accurate payments are made and duplicate reimbursements are avoided.

340B Vigilance. Duplicate discounts are a significant challenge for pharmaceutical manufacturers participating in the $44 billion federal 340B drug pricing program. The company's 340B Vigilance solution remediates duplicates discounts related to this program for manufacturers by flagging and managing prescriptions to prevent duplicate discounts before rebate payment. 340B Vigilance is integrated with the company's Validata solution and works seamlessly with Good Faith Inquiry (GFI) service providers to deliver a closed loop solution.

State Pricing Transparency Management. Highly configurable solution to manage and meet the pricing calculations, reporting requirements, specific formats, and timelines mandated by various individual U.S. States. Reduces the potential risk of non-compliance with state price transparency requirements.

Deal Management. Helps increase revenue and reduce revenue leakage by connecting critical front and back-office operations to ensure optimal product placement and pricing decisions leveraging customer memberships, pricing tiers and past performance insights. Ensures better efficiency and alignment between sales and operations teams of Life Sciences Manufacturers.

Advanced Membership Management. Helps manufacturers manage their customers' membership with specific Group Purchasing Organizations (GPOs). Reduces revenue leakage by validating eligibility for contracted pricing and ensures compliance with specific rebate policies.

Intelligence Cloud. Integrated business intelligence application to provide KPIs and trend analytics on all aspect of pricing, contracting, and discounting data across the company's suite of solutions through easy to configure dashboards and reports.

Revenue Cloud for High Tech - The company's suite of solutions enables customers to modernize their sales processes by adopting a strategic approach to manage the revenue lifecycle by planned revenue.

Deal Management. Increases deal conversion and pricing consistency with pricing, quotes and contracts natively supporting the High Tech Channel end-to-end.

Deal Intelligence. Provides High Tech manufacturers with the ability to analyze historical deal data, measure the impact of different pricing and discounting strategies and apply their findings into current deals. Controls price concessions and determines ideal prices by using in-context analytics.

Channel Management. Provides manufacturers a clearer view of inventory, including the ability to evaluate and perform actions, such as price protection and stock rotation and matching available inventory to quotes. Increases the ease of doing business with partners by streamlining commission calculations and validating inventory levels.

Market Development Fund Management. Allows companies to streamline their marketing development funds MDF (MDF) programs and reduce revenue leakage by increasing partner participation through a self-service portal that facilitates claims and tracks proof of execution.

Rebates Management. Centralizes control of rebate programs to reduce upfront discounts and enables effective management of all incentives. Automates the end-to-end process of managing rebates from creation to payment, including dashboards and reports to manage compliance and performance for both internal and external users.

Channel Data Management. Automates the process of collection, cleansing, validation, and standardization of channel partner data, such as point of sales (POS), inventory, and claims.

Payment Management. Enables companies to pay, audit, and manage incentive payments globally while reducing costs to ensure their accuracy and timeliness.

NGage. As high-tech customers are expanding with new channel partner types there is a need to accelerate onboarding of partners to achieve their business goals. NGage is an in-app guidance application that helps the company's customers drive and measure channel/user adoption, change management and process excellence.

Services and Customer Support

The company offers a comprehensive set of services to assist the company's customers through the full lifecycle of new business transformations or upgrades of existing solutions. The company helps its customers define, implement and support or manage its solutions. The company provides implementation services, application services, business services, and strategic services both on and offshore, as described below.

Implementation Services. The company assists its customers in the implementation or upgrade of the company's Revenue Cloud, including project management, design and solution blueprint, process improvement, application configuration or customization, systems integration, data cleansing and migration, testing and performance tuning, production cutover and post go-live support.

Application Services. The company offers managed services for customers using its solutions either on-premise through a legacy contract or in the cloud, which include systems administration and infrastructure management, application support, custom feature support and education services, including process, application and end-user training.

Business Services. Through the company's acquisition of Deloitte & Touche LLP's pricing and contracting solutions business in 2021, the company offers a fully managed and outsourced deployment and consumption model for the company's core life sciences commercial and regulatory solutions.

Strategic Services. The company assists its customers in defining best practices and strategies in revenue management, assessing the capability of the existing transaction and decision support solutions, developing business cases for change and transformation plans and answering strategic questions.

Customer Support. The company delivers customer support from support centers located in the United States, as well as at the company's offices in India. The company offers a range of support offerings, including 24x7x365, packaged into varying levels of access to the company's support resources.

In addition, the company has cultivated relationships to promote and assist with the implementation of the company's solutions with consulting firms. While the company does not maintain formal contractual relationships with these firms that require them to promote the company's solutions to their clients, the company works with them for implementation and other professional services projects. As a result, these firms have expertise in the company's technologies and best practices and has invested in building out their practice areas with the company's revenue management solutions.

The company deploys its resources globally through offices located in the United States, India, and Switzerland.

Customers

As of September 30, 2023, the company had approximately 182 customers. The company's customers range in size from the largest multi-national corporations to smaller, emerging companies. The company's customers represent a range of sub-verticals within the broader life sciences and high tech industries, including biotechnology, pharmaceutical, medical device, generics, semiconductor, electronic component, consumer electronics, and software.

Sales and Marketing

The company targets large, mid-sized, and small/emerging life sciences and high tech manufactures worldwide through the company's direct sales force. The company's sales and marketing programs are also organized by geographic region. The company augments its sales professionals with solutions engineers and industry domain experts via the company's Center of Excellence. These professionals work closely with prospective customers during the sales process.

Research and Development

The company's research and development expenses were $48.5 million during the year ended September 30, 2023.

Intellectual Property

As of September 30, 2023, the company had one patent application pending and thirteen issued patents expiring between 2024 and 2038. The company has a number of registered and unregistered trademarks.

Competition

The company encounters competition from independent companies, such as IQVIA Holdings Inc., Vistex, Inc., IntegriChain, iContracts, Inc., EVERSANA, and E2open, LLC.

History

Model N, Inc. was founded in 1999. The company was incorporated in Delaware in 1999.