Disc: I am not invested and not planning to considering the crazy run up and lack of risk reward.
But came across below research report which highlighted the future focus of mgmt into Life-sciences segment.
Healthy acquisitions in Healthcare and Pharma Sector to gain more market share of Cloud in Pharma Sector
8K Miles over the past 12 months has acquired three firms in the health and pharma space. Earlier this year, it had acquired the US-based Cintel Systems, Canada-based Mindprint and another US-based firm SERJ Solutions to strengthen its portfolio in the fast-growing life sciences sector. It also acquired US-based NexAge Technologies, that specializes in the life sciences sector last quarter.
Cintel Systems is a user interface (UI) and user experience (UX) design and development services company. The deal size is $3.75 million and is a combination of cash and stock. The acquisition expands the mobile competency of the company's cloud offering and helps it gain access to Cintel's enterprise clients and add over 70 Mobile, UI & UX experts in the US
Mindprint is a clinical research software startup focused on analytics and operational software for Clinical Research Organizations (CROs) and Pharmaceutical Sponsors. The acquisition involved $150,000 in cash and $250,000 in stock.
Company said - Mindprint domain knowledge of clinical research and pharma outsourcing operations will provide 8K Miles additional competitive advantage to capitalize on the growth potential in the related markets in India and abroad.
SERJ Solutions is a provider of innovative Epic EHR consulting, custom application development, and support solutions for the healthcare market.
―By taking advantage of our expertise in cloud technology and information security, and combining that with deep healthcare domain expertise, this acquisition will allow us to create a compelling suite of cost effective hosted SaaS solutions that healthcare providers can deploy," said Suresh Venkatachari, chairman and CEO of the company.
NexAge Technologies USA Inc. is one of the principal regulatory compliance and technology solutions company in the U.S. with more than 15 years of experience in Computer Systems Validation, Quality Review, Vendor Audits, Data Analysis and Migration, Analytics, Change Management, as well as Governance for the Life Science and Pharmaceutical industry. The total consideration in cash and stock, for the acquisition is $3,000,000 dollars ($1,500,000 in cash and $1,500,000 worth of US subsidiary stock).
This acquisition will boost company's world class CloudEzRx™ solution that has been designed with an ultimate goal to address qualification and validation compliance for applications running on the cloud securely with the larger purpose of empowering Pharmaceutical and Life Sciences enterprises to utilize cloud services across value and supply chains.
Further company said growth could be through both organic or inorganic routes meaning in future too 8K will seek healthcare, lifescience and pharma sectors as the company sees strong opportunity in the cloud market, which is getting matured.
Government policies to boost demand for Cloud and IoT
The recent Supreme Court order legalizing Obamacare across the US is a big boost to cloud players like 8K Miles.
ObamaCare is a US healthcare reform law that expands and improves access to care and curbs spending through regulations and taxes.
The health law, which will bring millions of uninsured Americans health benefits will be a critical boon to pharmaceutical industry balance sheets, increasing revenue by one-third by the end of the decade, according to a report from research and consulting firm GlobalData of London. That means the U.S. pharmaceutical industry’s market value will mushroom by 33 percent to $476 billion in 2020 from $359 billion last year.
The Life Sciences Industry in the US is currently facing tough IT challenges driven by a need to create more innovative solutions within shrinking IT budgets which makes it even more important to design agile cloud centric solutions and business models that are rapidly scalable. 8K Miles CloudEzRx™ framework enables customers run critical workloads securely on the cloud and is designed to meet security, analytical and operational needs while addressing the unique regulatory compliance requirements faced by Pharmaceutical and Life Sciences companies. The domain expertise of 8K and proprietary IT solutions in data migration and analytics will enhance and further improve the overall portfolio of its solutions targeted to the Life Sciences industry.
Through this acquisition, 8K Miles gains access to the network of Enterprise customers and strategic partners acquired by NexAge during the last decade.
My perspective from Phama pov:
1. With increasing usage of wearables and bio-sensors (IoT), there will be data deluge from clinical trials which will need heavy duty processing. There would be a drive towards cost-effective scalable cloud platforms.
2. Same would be the case with complex biologics molecules which involves gene-editing, genome sequencing, immunotherapies, etc.
3. AMC for life-sciences segment could be a source of recurring revenues.