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Model N (MODN) Unveils Advanced Solutions for Pharma Industry

Model N Inc. MODN recently unveiled cutting-edge integrated data solutions called Syndicated Customer Master and Formulary Compliance to address a wide array of complexities frequently encountered by manufacturers in the life sciences industry.

Formularies are curated lists of medications that are covered in health insurance plans and managed by pharmacy benefit managers (PBMs). This is a vital mechanism ensuring a patient has access to necessary therapies. However, keeping up with the large volume of formulary data and ensuring compliance is a daunting task for pharmaceutical manufacturers. Non-compliance might lead to extensive financial losses for manufacturers through rebate overpayment. These incidents can create friction and undermine business relationships between PBMs, payers and pharmaceutical manufacturers.

MODN’s Formulary Compliance is a comprehensive solution that efficiently resolves these issues. Integrated with Model N’s Validata and Payer Management solutions, it streamlined the rebate process, preventing any overpayment and thereby optimizing revenues for manufacturers. Accurate formulary compliance mitigates disputes between manufacturers and payers. A thoroughly secured, comprehensive formulary database gives enterprises access to essential insights into compliance issues. The solution enables producers to align drug availability with the formularies, ensuring that patients have access to the prescribed therapies without any hindrance.

Pricing errors due to the use of obsolete, misleading customer data and invalid chargebacks are also major issues for organizations. This can affect customer relationships and hinder revenue growth. The newly released MODN’s Syndicated Customer Master boosts master data quality, ensuring chargeback precision with the latest purchasing data. It brings accurate pricing capabilities to improve customer satisfaction.

The advanced features of leading-edge data solutions empower pharmaceutical companies to make well-informed business decisions, optimize revenue, and ensure compliance. Model N has significant growth opportunities in the revenue management market as it continues to replace legacy processes that are labor-intensive, error-prone and costly.

In April 2024, Model N announced that it had signed an agreement with the global investment firm, Vista Equity Partners. Per the deal, Vista is set to acquire MODN for approximately $1.25 billion. For Model N, the buyout will open up access to greater resources, placing it for sustained growth and market leadership for the coming years.

The stock has declined 10.5% in the past year against the industry’s growth of 34.3%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Stocks to Consider

Model N currently carries a Zacks Rank #3 (Hold).

NVIDIA Corporation NVDA, sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.68% and delivered an earnings surprise of 15.39%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Silicon Motion Technology Corporation SIMO, sporting a Zacks Rank #1 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.

It is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.

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