Monday, April 16, 2018

Cross-Selling Can Drive Meaningful Growth For Medidata Solutions

There's really no "steady state" for growth tech companies, and while Medidata Solutions (MDSO) has built a strong business with its cloud-based platform for the management of clinical development programs, management cannot afford to rest on its laurels. That's particularly true given that revenue growth decelerated through 2017 and both subscription revenue and backlog growth came in a little slower than expected.

With around 50% share and more than 80% of the top pharma companies in hand as clients, Medidata's growth is likely to come more from expanding its share of wallet with customers and selling them on the value of its offerings beyond its core RAVE electronic data capture (or EDC) platform. Given the increasing complexity and cost of clinical development, I believe Medidata has a better than fair chance of doing that, but rising competition is a threat. Even so, while I wouldn't care Medidata conventionally cheap, the valuation is reasonable enough to merit a closer look.

Read the full article here:
Cross-Selling Can Drive Meaningful Growth For Medidata Solutions

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