I-many Signs Agreement To Acquire Edge Dynamics: Acquisition Expands Breadth And Depth Of Its Life Sciences Solutions

I-many, Inc.,a leading provider of contract management software and services for the enterprise, recently announced that it has signed a definitive merger agreement to acquire privately-held Edge Dynamics, Inc., a leading provider of channel demand management solutions for the life sciences industry based in Redwood City, California.

I-many has agreed to pay consideration consisting of a payment in cash to Edge Dynamics shareholders and assumption of Edge Dynamics' debt. The transaction, which is subject to the customary conditions for closing, is expected to close within the next several days.

"Building on the acquisition of GHX in January, I-many continues to expand its life sciences capabilities and footprint with the acquisition of Edge Dynamics," said John A. Rade, president and chief executive officer of I-many. "These acquisitions further consolidate our leadership in contract management by creating the first comprehensive and integrated gross-to-net-net solution for our enterprise customers. We help our customers follow their contracts and their money, and now, we can help them follow their products."

Rade continued, "This combination can be game changing for our customers by permitting them to use both syndicated and non-syndicated data to gain new insights into their business permitting them to eliminate even more revenue leakage thus increasing both top and bottom line."

I-many expects Edge to add about $5M in revenue to its business over the next 12 months, with the potential to grow to a $20M business in about four years. While not accretive in 2008, the acquisition is expected to be accretive to earnings in 2009.

Life sciences organizations manage a large variety of rebates, chargebacks and performance contracts with their wholesaler, retail and institutional customers. Payment errors and poor channel management can consume five percent or more of all revenue. With today's increased margin pressures, life sciences companies have a financial incentive to optimize commercial operations and eliminate sources of revenue leakage.

According to Hussain Mooraj, research director at AMR Research (Boston), "Pharma companies sometimes spend more in rebates and chargebacks than they do in R&D, yet their confidence in how well they are managing it, and how well they are maintaining regulatory compliance, remains low."

The addition of Edge Dynamics technology will help I-many customers reduce more of these risks and associated costs. For example, Edge's chargeback solution can enable I-many CARS® to verify chargebacks against channel sales data, and identify missing chargebacks and negative chargebacks. In addition, by incorporating Edge Dynamics products and data into its own solution, I-many will be able to provide customers with more insight on product demand and the actual movement of products from the factory to the patient.

Henry Olson, president and chief executive officer of Edge Dynamics, said, "With Edge Dynamics under the umbrella of an industry leader like I-many, pharmaceutical companies can receive our leading demand management product from a large and trusted partner. We are confident the industry will welcome our integrated set of products, support and services."

Edge Dynamics, established in 2002, has been empowering pharmaceutical manufacturers to maximize product revenues and reduce operational costs by giving them capabilities to understand, manage, and extract value from their distribution channel. Its on-premise and on-demand solutions enable manufacturers to sense channel demand, find business exceptions that matter, and optimize operational performance in real time.

William Roth, founding partner of the Blue Fin Group commented, "We believe this is a good thing for both I-many and Edge Dynamics, their customers, and the industry in general. The potential for pharmaceutical manufacturers to cross the chasm between commercial operations and managed care can now be realized, as manufacturers strive for greater control and predictability of sales and profitability. With close integration, this combination could also provide the manufacturer improved compliance measurements and accuracy for government pricing reporting, which is a critical management point within pharmaceutical manufacturers."

Eric Newmark, Research Manager from IDC's Health Industry Insights, added "Navigating the complexities of regulations and contracts is difficult enough without the additional burden of managing multi-vendor integration. This acquisition is a significant step toward I-many providing a one-stop shop for pharma companies to address contract management, contract compliance, and enhanced demand visibility."

About I-many
I-many is the leading provider of contract management software and services for the enterprise. With hundreds of customers across 21 industries worldwide, I-many is enabling businesses to manage the entire contract lifecycle, from pre-contract processes and contract management to active compliance and contract optimization. The result is an end-to-end solution that provides enterprises with greater levels of insight into contract performance, allowing companies to improve profitability and achieve measurable return on investment. For more information, please visit www.imany.com.

SOURCE: I-many, Inc.