Entering a New, Adjacent Information Market

CHALLENGE

Faced with shrinking margins, a billion dollar distributor of specialty drugs wanted to explore adjacent growth opportunities. A key area of interest was the point-of-care data they were collecting as a by-product of their core business. The management team asked us to assess the value of that data, define possible business models and technology requirements to enter the drug informatics space.

APPROACH

We analyzed pharmaceutical data needs, sized each market opportunity, reviewed competitors and profitability, and developed potential business models. We helped the company place these growth opportunities into the larger context of data monetization – assessing the value of product innovation versus basic data sales.

RESULTS

• Business cases for the new information products identified up to $20 million in potential incremental revenue.
• Project sponsor created a separate venture providing real-time information to the pharmaceutical industry – that was later acquired by a multi-billion-dollar global information services company.