Model N’s Rainmaker conference took place in Austin, TX from June 10 to June 12, 2024. The event had a strong attendance of almost 500 participants, including prospects and new customers. Representatives from prominent pharmaceutical, medical technology, high technology, and biotechnology companies were present, engaging in sessions that covered a wide range of industry-related topics.
Northridge Insight had a booth visited by numerous participants from the event. In candid discussions at the booth, there were repeating themes on the value proposition to Model N, including:
- Difficulty in business cases in migration to the cloud due to high costs and lack of ROI
- Customers hoping to put pressure on Model N to reduce cost and influence their pricing
- Model N’s Testing Automation Services (RTS) continues to be an area that struggles to reach its full potential for customers
- Room for process efficiency improvements
- Customer’s desires to focus on streamlining and improving the current product
Model N Opening Keynote & Product Updates:
Jason Blessing, Model N CEO, opened the conference with key announcements, foremost being Model N’s acquisition by Vista Equity Partners, a move that fully privatizes the company. Vista is focused on enterprise software, data, and technology-enabled businesses. They purchased Model N on for $30/share, valuing the company at $1.25 billion.
Potential Impact:
Model N customers could be impacted by operational changes or shifts in strategic focus resulting from the acquisition.
Data Analytics:
In 2024, Model N claims that they are prioritizing the management of revenue operations while addressing the vast volume of generated data, aiming to reduce reliance on external data sources.
New Features & Functionality:
Blessing reported that Model N will remain proactive in adapting to regulatory shifts by promptly updating products and ensuring compliance and operational efficiency. Model N’s key initiatives for 2025 include the introduction of an enhanced user interface, strengthened security measures, and the launch of their Customer Success Portal.
Model N Cloud Migration Strategy:
In 2024, Model N is allocating increased resources to each release and reinforcing its commitment to cloud infrastructure investments with the aim to modernize the end-user experience, improve scalability, and enhance overall system performance.
Formulary Compliance:
During the Product Keynote, Model N CPO, Suresh Kannan demonstrated the features of a new automated solution designed to track plans and formulary data integrated into rebate and payment processes. The demonstration highlighted critical challenges in formulary plan tracking, including lack of automation leading to potential overpayments and restricted patient access due to the complexity and frequent changes in data validation requirements.
Syndicated Customer Master:
Suresh also introduced its Syndicated Customer Master, a data subscription service that enhances customer data management by leveraging information from HRSA, HIBIIC, DEA, and other external sources. This module seeks to empower Master Data Teams with rapid customer creation capabilities and offers integration options with ERP systems, for use with Powered By N and Powered By Flex Chargebacks Modules.
Key Industry Topics:
Rise of GLP-1 Drugs:
With projections indicating a third of the population could utilize obesity treatments by the next decade, there is substantial potential for growth, impacting pharmaceutical manufacturers and positioning the market to reach $100 billion by 2025. With 1 in 8 adults taking GLP-1 drugs for weight loss, thought-leaders in pharma are asking how obesity reductions for a large part of the population will impact the demand for drugs treating chronic obesity-related diseases, such as those for cardiovascular disease, diabetes, and cancer.
Inflation Reduction Act (IRA):
The Inflation Reduction Act continues to have widespread impacts, causing unintended consequences such as influencing market access and pricing strategies. Payers are under heightened pressure to negotiate drug prices, anticipating higher launch costs as a result of legislative efforts aimed at reducing overall pricing. Additionally, the Modified Fee-for-Service Payment (MFP) process has intensified utilization management requirements, necessitating detailed reporting on MFP products and prompting non-MFP products to maximize rebate opportunities. These dynamics contribute to increased out-of-pocket expenses for patients, emphasizing the critical need for innovative contracting and reimbursement strategies within the pharmaceutical industry.
340B Program:
The 340B program has shown significant growth despite limitations on contract pharmacy arrangements. Evolving market access strategies reflect complexities in payer dynamics and regulatory landscapes, necessitating proactive approaches with structured frameworks and vigilant oversight to ensure equitable access. Evaluating risk tolerance becomes paramount amid escalating legislative scrutiny on 340B programs, with states like Arkansas enacting laws such as Act #1103 to mandate broader access to contract pharmacies against manufacturer restrictions.
340B Validations & Vigilance:
Jeff Albright, Model N Director of Product Management covered various strategies and collaborations aimed at enhancing 340B validations. This includes direct validations utilizing the DataQ platform from NCPDP, facilitating integration and relationship management within existing systems. Partnerships with BRG Equity involve the scrubbing and validation of 340B drugs, with automated integration offered to BRG subscribers, complemented by combined integrations with CiiTa validations for comprehensive compliance and efficiency in pharmaceutical operations.
