McKesson Ventures Joins SHYFT Analytics Series B, Bets on Analytics for Pharma
McKesson Ventures is the latest company to invest in Series B financing for SHYFT Analytics Inc.
McKesson Ventures joins Medidata Solutions Inc., Health Enterprise Partners, and Milestone Venture Partners in a funding campaign for SHYFT that has secured $12.5 million. SHYFT, a cloud-based analytics company that provides information for the life sciences industry, will use the funds to expand its data-driven technologies.
McKesson Ventures Managing Director Dave Schulte is banking on outcome-based pharmaceuticals as being the way of the future. Indeed, healthcare industry trends show an increased focus on value-based reimbursement. In other words, clients are asking insurance companies to switch from volume-based care (fees based on service) to value-based care (fees based on quality).
The recent demand for value-based care will likely lead to outcome-based contracts between insurers and pharmaceutical companies. Facing pressure from consumers, insurance providers will likely require pharmaceutical companies to supply extensive, in-depth data on their drug’s effectiveness before signing any contracts.
That’s where SHYFT comes in. In the past, pharmaceutical companies have obtained data from external sources, such as IMS Health, to attest to their drug’s effectiveness. Pharmaceutical companies then hire outside consultants to analyze the data in quarterly or yearly reports. SHYFT’s cloud-based system offers companies the ability to conduct their own data analysis, saving precious time and money.
Demand for healthcare analytics is projected to increase alongside pharmaceutical companies focusing their attention on treatments for rare diseases and disorders. Analytics serve as an invaluable source for gathering information on these niche markets.
To read more about McKesson Ventures’ latest investment, read the Wall Street Journal article here.