IT in medicine and pharmaceuticals – profitable investments
Epam has been tampered with. The company bought an American manufacturer of software for pharmaceutical companies
Maria Kolomychenko, Kommersant (published on the COMNEWS website)
The Russian manufacturer of custom software Epam Systems bought the American manufacturer of software for pharmaceutical companies GGA Software Services, as well as the Institute of Theoretical Chemistry. The deal was paid for with both $10 million worth of Epam shares and cash. Information technologies in medicine will grow at an explosive pace, experts say.
Information that Epam Systems has bought GGA Software Services is published on the website of the U.S. Securities and Exchange Commission. Founded in 1993, GGA Software Services develops software products, databases and information systems in the field of bio– and chemoinformatics. The company has a division in St. Petersburg, which employs 400 people. Its main clients are pharmaceutical companies and medical equipment manufacturers, including "eight of the top 10 largest pharmaceutical companies in the world," said Richard Golob, CEO of GGA Software Services. In particular, the services of GGA Software Services are used by the "daughter" of Merck & Co, whose revenue by the end of 2013 is $ 44 billion.
The second asset, the purchase of which was announced by Epam, is the Institute of Theoretical Chemistry, founded in 1995 by Professor Viktor Gankin in Needham (Massachusetts, USA). The Institute is part of the GGA Group and focuses on research in the field of bioinformatics, explained Arkady Dobkin, President and Chairman of the Board of Directors of EPAM Systems. The capabilities of GGA Software Services, according to Mr. Dobkin, will be widely used in the development of software for biomedical companies, but it is possible that the company will write software for traditional Epam markets – financial, media, consumer market and retail. "Epam paid the sellers with cash, as well as its own shares in the amount of about $10 million," Epam said in a statement. The company did not disclose the total value of the transaction.
After the announcement of the deals, Epam shares on the New York Stock Exchange rose by 2.69% to $ 45.8, the company's capitalization was $2.14 billion. Since the IPO of Epam in February 2012, the capitalization has more than quadrupled.
Epam Systems was founded in 1993, the company's headquarters is located in Newtown (USA). Epam's revenue in 2013 amounted to more than $ 555 million, of which 50.8% accounted for customers in North America and only 11.7% – in the CIS. Most of Epam's revenue is generated by independent software vendors, companies from the financial and tourism sectors. The company employs 11 thousand people, 91% of them work in the CIS countries, as well as Central and Eastern Europe.
According to Epam's competitors, now is a good time to invest in the production of software for pharmaceutical companies. "There is nothing more promising than IT in medicine. This direction gives a great return in terms of human capital, and explosive growth is expected in the coming years," Anatoly Karachinsky, President of IBS Group, told Kommersant. At the same time, contracts for IT services of pharmaceutical companies can last for years due to the long process of developing and implementing drugs, says Maxim Klyagin, analyst at Finam Management Management Company. According to GGA Software Services, the development and release of one drug costs about $ 800 million and takes 10-12 years.
Portal "Eternal youth" http://vechnayamolodost.ru11.06.2014