|
I-many Acquires Edge Dynamics Sign Up to receive Daily News Alerts in your E-mail Inbox
Posted on Monday, May 05, 2008 4:31:53 PM |
|
I-many Inc., a purveyor of contract management software, announced today that it would acquire privately held Edge Dynamics Inc., a provider of channel demand management applications for the life sciences industry.
I-many said the deal, which is expected to close within the next several days, would create an end-to-end suite that will help pharmaceutical and other life sciences organizations manage their contracts while keeping track of products through the distribution chain.
Last year, I-many rolled out its Contract Management for the Enterprise suite, after investing $35 million to move all of the company’s products onto a Web-based platform that manages the entire lifecycle of a contract, from creation and storage to notification of key business events and milestones. The suite supports all business functions, including sales, procurement, IT, IP, and other legal processes, according to the company.
The Edge Dynamics acquisition will add more depth to the offering, officials said today. “Edge does a great job of following the product and all of the transactions associated with it as it moves from manufacturing, to the wholesaler, to the distribution center, and ultimately to the public,” said John Rade, I-many’s president and CEO, in an interview with Managing Automation. Edge’s capabilities will allow I-many to follow the contract, the money, and the product through the entire commercial lifecycle, he said.
“This has always been a thorn in the side of customers,” Rade said, referring to the disconnect between contracts and channel management. “Even the most sophisticated companies admit they haven’t stopped all of the revenue leakage.”
According to industry experts, life science manufacturers are managing a large volume of rebates, chargebacks, and performance contracts with their wholesale, retail, and institutional customers. And poor channel management can cost a company about 5% of revenue, I-many said.
“Pharma companies sometimes spend more in rebates and chargebacks than they do in R&D,” said Hussain Mooraj, a research director at AMR Research, in a statement. “Yet, their confidence in how well they are managing it, and how well they are maintaining regulatory compliance, remains low.”
Edge Dynamics’ demand management suite consists of OperationsEdge for demand planning, scorecard calculation, and sales and inventory reporting; MarketEdge for optimization of product launch and campaign effectiveness; and FinanceEdge for chargeback and return verification, Sarbanes-Oxley compliance, and revenue recognition.
“We can see in real time how a product moves by having an integrated view of the factory, what is going on in the wholesale part of the channel, as well as at the pharmacy end,” said Henry Olson, Edge Dynamics’ president and CEO in an interview. “It gives manufacturers a comprehensive view.”
Both the I-many and Edge products are focused on the life science industry. I-many is an 18-year-old company working with 80 of the top pharmaceuticals around the world, while Edge started in 2002 with the mission of solving the problems related to channel inventory management and adherence to contracts within the complex pharmaceutical industry.
I-many said the tools are industry-agnostic, however, and the company plans to expand its vertical expertise and product offering into food service, technology, and the defense industries, Rade said.
While details of the Edge Dynamics deal were not disclosed, I-many said it expects the acquisition to add about $5 million in revenue to I-many’s business over the next 12 months.
Managing Automation profiled Edge Dynamics as one of its 2005 Companies to Watch.
|
|
|
|
|