jefferies tmt solutions... 2013 medidata solutions, inc. 1 tareksherif, chairman and ceo cory...

Download Jefferies TMT Solutions... 2013 Medidata Solutions, Inc. 1 TarekSherif, Chairman and CEO Cory Douglas, CFO May 9, 2013 Jefferies TMT Conference ... Non-Rave revenue is scaling rapidly

Post on 09-May-2018

212 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • 2013 Medidata Solutions, Inc. 1 2013 Medidata Solutions, Inc.

    Tarek Sherif, Chairman and CEO

    Cory Douglas, CFO

    May 9, 2013

    Jefferies TMT Conference

  • 2013 Medidata Solutions, Inc. 2 2013 Medidata Solutions, Inc.

    Safe Harbor Statement

    This presentation contains forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995 that involve significant risks and uncertainties about Medidata Solutions, Inc.(Medidata), including but not limited to statements about Medidatas forecast of financial performance,products and services, business model, strategy and growth opportunities, and competitive position. You arecautioned that such statements should not be read as a guarantee of future performance or results, and willnot necessarily be accurate indications of the times at, or by which, such performance or results will havebeen achieved. Such statements are subject to risks and uncertainties that could cause actual performanceor results to differ materially from those expressed in these statements. In particular, the risks anduncertainties include, among other things, risks associated with possible fluctuations in our financial andoperating results; errors, interruptions or delays in our service or our Web hosting; the financial impact of anyfuture acquisitions; our ability to continue to release, and gain customer acceptance of, new and improvedversions of our products; changes in our sales and implementation cycles; competition; our ability to retainand expand our customer base or increase new business from those customers; our ability to hire, retain andmotivate our employees and manage our growth; regulatory developments; litigation; and generaldevelopments in the economy.

    For additional disclosure regarding these and other risks faced by Medidata, see disclosures contained inMedidata's public filings with the Securities and Exchange Commission (the SEC) including, the RiskFactors section of Medidatas most recent filings. You should consider these factors in evaluating the forward-looking statements included in this presentation and not place undue reliance on such statements. Theforward-looking statements are made as of the date hereof, and Medidata undertakes no obligation to updatesuch statements as a result of new information.

  • 2013 Medidata Solutions, Inc. 3 2013 Medidata Solutions, Inc. 3

    New York City

    1999

    9 offices across U.S., U.K., Japan and China

    Biopharma clinical development spend =

    $85+ billion

    NASDAQ: MDSO

    ~ $1.75B market cap 05/06/13

    ~ $124M balance sheet cash

    ~1,000

    358 customers, includes over 90% of top

    biopharma companies

    Medidata Today

    * Represents mid-point of management guidance Note: Refer to Reconciliation of GAAP to Pro Forma Results for Non-GAAP Operating Income and Non-GAAP Net Income calculations Source: Biopharmaceutical R&D Statistical Sourcebook 2012/2013, Medidata estimates

    $105.7

    $140.4

    $166.4

    $184.5

    $218.3

    $272.0

    (3.8)

    24.1 39.0

    45.7 47.1

    62.5

    2008 2009 2010 2011 2012 2013*

    Key Metrics(millions)

    Revenue Non-GAAP Operating Income

    Founded:

    Headquarters:

    Location:

    Customers:

    AddressableMarket Size:

    Public Co:

    Leading provider of cloud-based solutions for the life sciences industry

    Headcount:

    CAGR = 21%

    25%

  • 2013 Medidata Solutions, Inc. 4 2013 Medidata Solutions, Inc. 4

    Large and Diverse Customer Base

    Biopharmaceutical

    Medical Devices CROs Academic Institutions

    173

    219

    275

    350

    2009 2010 2011 2012

    Total Customers

  • 2013 Medidata Solutions, Inc. 5 2013 Medidata Solutions, Inc. 5

    Industry-Leading Retention Rates

    Note: Top 50 Biopharma ranked by R&D spend and number of trials; same 2012 list of top 50 used for analysis in each year

    80

    134156

    189

    248

    341

    68

    39

    63

    86

    102

    17

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    0

    50

    100

    150

    200

    250

    300

    350

    2008 2009 2010 2011 2012 1Q 2013

    350

    275

    219

    173

    148

    Customer share of top 50 Biopharma

    82%70%66%64%64%

    New customersContinuing customers

    Revenue retention rate

    358

    82%

  • 2013 Medidata Solutions, Inc. 6 2013 Medidata Solutions, Inc. 6

    Growth in Multi-Product Deals

    0

    50

    100

    150

    200

    250

    300

    350

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 2Q 12 4Q 12 1Q 13

    Share of customers buying two or more products

    Total number of customers

    Share of customers buying multiple products and new customer growth

    Percent Number of customersNon-Rave Revenue increased 125% from Q1 2012 to Q1 2013

  • 2013 Medidata Solutions, Inc. 7 2013 Medidata Solutions, Inc. 7

    Track Record of Increasing Customer Penetration

    $150M

    Single study

    EDCevaluation

    Addldivisions

    Enterprise re-up +

    addl products

    Full enterprise platform

    Top 10 Pharma

    $25MMid-Market Pharma

    Single study

    Competitiveaccount

    Study by Study addl

    volume

    Enterprise EDC + 5 addl

    products

  • 2013 Medidata Solutions, Inc. 8 2013 Medidata Solutions, Inc. 8

    Solving the Challenges of Clinical Development

    Regulatory approval

    Evaluate therapy for safety

    Evaluate therapy for efficacy

    Evaluate therapy on large

    populations for efficacy and safety

    Evaluate therapy for long-term safety / new

    indications

    Develop idea for

    therapy and test in lab

    Medidata Clinical Cloud

    Phase IPhase I Phase IIPhase II Phase IIIPhase III Phase IVPhase IV

  • 2013 Medidata Solutions, Inc. 9 2013 Medidata Solutions, Inc. 9

    Life Sciences Business Model Under Pressure

    Siloed, manual and inefficient processes

    Limited visibility into trial performance

    High spend on services and implementation

    Increasing complexity and international breadth of trials

    Fewer blockbuster therapies

    Inability to leverage explosion of analytics and data

    Struggle to adapt to emerging world of highly targeted therapies

    Lack of control

    over costs

    Slowing revenue growth

  • 2013 Medidata Solutions, Inc. 10 2013 Medidata Solutions, Inc. 10

    Growth in Trial Complexity and Patients Per Trial

    Source: Parexel Biopharmaceutical R&D Statistical Sourcebook, 2012/2013; Tufts CSDD, Tufts University School of Medicine

    Enrolled Patients per New Drug Application (NDA), 2007-2011

    CAGR = 20%

    Change in trial complexity, 2011 vs 2000All TAs, all phasesPercent change in units, %

  • 2013 Medidata Solutions, Inc. 11 2013 Medidata Solutions, Inc.

    Increasing Pharma Commitment to Innovation

    Improving environment for life sciences companies

    Significant growth in new drug applications filed with both FDA and EMA from 2010-2012

    39 new drugs and biologic products were approved by the FDA, a 15-year record in 2012

    Emerging market growth is expected to be particularly strong with significant increases in sales, R&D spend, and new trials/approvals from domestic biopharmaceutical companies

    Biopharma leadership plans for 2013 R&D investment

    Source: FDA CDER reports; Battelle / R&D Magazine estimates and forecast

  • 2013 Medidata Solutions, Inc. 12 2013 Medidata Solutions, Inc. 12

    Significant Life Sciences Market Opportunity

    Sources: Gartner, Enterprise IT Spending by Vertical Industry Market, Worldwide, 2010-16, Q1 2012, 12-APR-122012 Parexel Biopharmaceutical R&D Statistical Sourcebook 2012/2013; Medidata estimates

    Total Life Sciences IT spend (Software,

    hardware, IT services) = ~$45B

    Global clinical

    development

    spend (phase I

    IV) = ~$85+B

    Potential for Medidata to expand software capabilitiesto move into areas currently addressed by IT services and hardware

    Strong potential to expand technology as a share of overall R&D spend

    2012 Total life sciences spend on technology and clinical development is ~$125B+

    Significant opportunity to accelerate growth and

    achieve long-term revenue goals

    Medidata sits at the intersection of science and technology

  • 2013 Medidata Solutions, Inc. 13 2013 Medidata Solutions, Inc. 13

    Sales Growth and R&D Investment of Medidata Customers Outpacing That of Other Large Pharma

    Source: Medidata sales, Parexel Sourcebook, Evaluate Pharma, Company 10Ks, Company annual reports Based on customers within top 25 biopharma ranked by R&D spend

    2010-2011 R&D spend growth, average2010-2011 sales growth, average

    5%

    3%

    0% 2% 4% 6%

    Medidata

    enterprisecustomers

    Customers of

    Oracle and otherEDC vendors

    5%

    2%

    0% 2% 4% 6%

    Medidata

    enterprisecustomers

    Customers of

    Oracle and otherEDC vendors

  • 2013 Medidata Solutions, Inc. 14 2013 Medidata Solutions, Inc. 14

    Financial data

    Operational data

    Financial data

    Clinical data

    Medidata is a Big Data Company

    Examples Share of protocol that are non-

    core to primary / secondary outcomes

    Pace of patient recruitment

    Cost of clinical procedures

    Quality of data for each

    investigative site

    Me