Medidata Solutions Inc.’s MDSO cloud-based clinical research solution continues to gain new users. Medidata Rave was recently selected by Japanese biotherapeutics company JCR Pharmaceuticals to power its research on developing treatment for Fabry disease in Japan.
JCR is developing therapeutic enzymes to treat lysosomal storage diseases (including Fabry disease), a group of rare genetic disorders which affect a minor percentage of the population. Reportedly, approximately 5K to 10K patients are diagnosed with Fabry disease in the world. In Japan, this figure stands at roughly 300.
The Medidata Rave solution helps in capturing electronic data and effectively managing clinical data. JCR believes that the cloud-based solution will help it to access data better, which will enable the company to conduct faster trials. We note that JCR’s adoption of the Medidata solution signifies the growing influence of Medidata in clinical research for various orphan diseases across the globe.
Of late, Medidata’s cloud-based solutions have been selected by clinical research organizations (CROs) as well as research institutes like PROMETRIKA, CTI, Peking University, Cancer Research UK, Childhood Arthritis and Rheumatology Research (CARRA), TWi Biotechnology, and many more.
These researchers are working to discover treatments for oncology, obesity, glaucoma, airway diseases and many other rare ailments. The adoption of Medidata solutions is not only eliminating challenges related to data capture but is also helping in processing the data effectively.
In February this year, Medidata partnered with a division of Garmin Ltd GRMN for mobile health interoperability in clinical research. The partnership expanded Medidata’s mHealth clinical research ecosystem that includes companies like Vital Connect, ActiGraph, Fitbit FIT and Spaulding. Also, in April, the company announced a partnership with Accenture ACN.
We believe that partnerships will boost Medidata’s penetration into emerging markets like China and South Korea. Moreover, growing demand for Medidata Rave, Medidata Coder, and Medidata Balance will continue to boost customer base going forward. Medidata added 39 new customers in the first quarter of 2015, which expanded its customer base by 23% year over year to 516.
During the quarter, the company signed 15 deals valued over $1 million, of which five were worth over $5 million. More importantly, 59% of the customers committed to multiple products, which will likely drive subscription revenues over the long term. In the first quarter of 2015, subscription revenues increased 23% year over year to $78.7 million. As of Mar 31, 2015, adjusted subscription backlog for the remainder of the year increased 19% year over year to $229 million.
Currently, Medidata carries a Zacks Rank #2 (Buy).
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