One big issue that has negatively impacted the biopharma industry for several years is slow movement in taking the risk out of drug development and late-stage commercialization. The process will become more complicated as Biopharma sponsors and contract research organizations (CROs) manage an increasing variety of clinical trial data, including multi-omics data.

Dassault Systèmes (3DS) and Medidata Solutions announced on June 12, 2019, the signing of a definitive agreement for Dassault Systèmes to acquire Medidata (at an enterprise value of $5.8 billion), which will result in the creation of the first end-to-end collaborative and scientific business platform for the life sciences industry.

The coupling of data and analytics capabilities with 3DS modeling and simulation capabilities stands to catalyze the next generation of patient-inclusive therapeutics. Below is our take on the value drivers for this partnership agreement.

Value for Medidata:

  • Access to capital and resources to expand geographic expansion (outside US markets).
  • 3DEXPERIENCE platform will not only optimize SHYFT platform to drive higher revenues but also RAVE and ACORN-AI, leveraging the end-to-end platform approach with their customers.
  • Ability to extend Medidata’s reach in the medical devices industry.

Value for Dassault:

  • Complete 3DS offering to clinical and commercial data to expand footprint in biopharmaceutical companies and drive innovation to end-to-end commercialization.
  • Ability to automate model- and data-driven regulatory filing.
  • Expansion with new customers, e.g., CROs, which are important partners for Medidata.

The crown jewel of this agreement is Medidata’s integrated solution portfolio; other competitors have only a single-source solution.

Both companies have followed a comprehensive platform approach and invested aggressively in innovation. If Dassault Systèmes integrates Medidata, clients can leverage end-to-end support from drug discovery to clinical to commercialization. The combination will dramatically improve productivity in drug development, level the playing field for competitors launching expensive innovative biologics and bring precision medicine closer to reality.

Frost & Sullivan believes this partnership will tap into the massive potential of Precision Medicine and will challenge other Life Sciences companies to adopt the following best practices:

  • Design connected platforms to promote patient centricity value proposition driving greater consistency in healthcare systems.
  • Embed strategic vision at all employee levels to constantly innovate and create large communities of reference-able customers.
  • Build collaborative partnerships that enable sharing data in real time to defray regulatory and commercial launch risks.

If your organization is looking at new ways to aggressively invest in innovation, we invite you to schedule a complimentary Growth Strategy Dialogue with our team of industry analysts, consultants, and visionaries.

Nitin Naik

Nitin Naik is the Global Life Sciences Vice President at Frost & Sullivan.

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