April 28, 2009
TargetRx Is Breaking the Market for Online Perscriptions
TargetRx was founded in 1999 and is a privately owned corporation that provides pharmaceutical and biotech companies insight into the real drivers of choice of their brands and the adoption of their brands. TargetRx offers a whole variety of solutions that can market these companies’ products until patents of these drugs expire. The approach that TargetRx uses is in sharp contrast as that of other like companies, which show massive volumes of healthcare information that healthcare professionals feel is important on a survey or what physicians and clinicians have prescribed in the past. What healthcare professionals, physicians and clinicians may say on market research surveys may be a good thing to know, but this data does not necessarily reflect what a physician might actually do when examining a patient. What TargetRx’s approach does, that is so unique, is that it uses predictive models of what goes on in the examination room. TargetRx can actually arm its clients with leading indicators of future behavior and actionable insights on how a given company’s brand initiatives will perform and the true drivers of prescribing a given company’s brand. TargetRx is based in Horsham, Pennsylvania.
TargetRx has eight members on its board of directors. These include Richard S. Kollender, chairman of the board and partner of Quaker BioVentures; Craig H. Scott, President and CEO of TargetRx; Brian H. Dovey, partner at Domain Associates; Philip P. Gerbino, PharmD and President of the University of the Sciences in Philadelphia; Michael J. Luby, cofounder and Head of Business Development at TargetRx; John M. Nehra, General Partner at New Enterprise Associates; Charles W. Newhall III, cofounder and general partner at New Enterprise Associates; and Stuart Samuels, management consultant.
Mr. Kollender is the chairman of TargetRx’s board of directors and is also a partner with the company from Quaker BioVentures. Mr. Kollender joined Quaker BioVentures and worked as the vc firm’s principal in 2003, but then in 2005 was promoted to partner. Before joining Quaker BioVentures, Mr. Kollender worked for GlaxoSmithKline in high positions, including sales, marketing, and global business development. While working in GSK’s business development department, Mr. Kollender had the opportunity to evaluate both early and late stage compounds, such as the anti-viral drug Abreva and saw to its successful licensing. Mr. Kollender graduated from Franklin and Marshall College with a BA and an MBA in Healthcare Administration.
Craig H. Scott is the President and the CEO of TargetRx and has a great deal of experience in pharmaceutical marketing and sales. Mr. Scott also has experience in general management on both the client and service sides. Before working for TargetRx, Mr. Scott was president of Catalina Health Resources Division of Catalina Marketing Corporation from 2004 until the company was bought out in November 2007. While working at Catalina, Mr. Scott has increased the company’s profits to record levels and led the transition of Catalina Health Resources into the direct-to-patient communication in pharmacies throughout the United States. Mr. Scott graduated from Brown University with a BA in Semiotics and then went on to further his studies at Wharton School of the University of Pennsylvania where he received an MBA.
Mr. Dovey has been a partner with Domain Associates since 1988 and has also served on the board of directors of 30 other companies during his tenure at the vc firm. Other companies that Mr. Dovey serves include Align Technology, Connetics, Geron, NABI, Neose, Orexigen Therapeutics, and others. Before coming to Domain Associates, Mr. Dovey was President of Rorer from 1986 to 1988 and was the main architect of Rorer’s strategic shift to pharmaceuticals. This shift that Mr. Dovey was involved in was also very good for Rorer because it resulted in doubling Rorer’s sales to close to $1 billion. Mr. Dovey also held top managing positions at Survival Technology, which is a startup company that produces medical products and has experienced record growth. Mr. Dovey graduated from Colgate University and then went on to earn an MBA from Harvard Business School.
Dr. Gerbino is the President of the University of Sciences in Pennsylvania, which holds the Philadelphia College of Pharmacy, College of Health Sciences, Misher College of Arts and Sciences, and the College of Graduate Studies. Dr. Gerbino is also a Fellow at the College of Physicians of Philadelphia, the American Pharmaceutical Association, etc. Dr. Gerbino is also currently the chairman of the Committee of University City Keystone Innovation Zone and also sits on the board of University City Science Center as well. Dr. Gerbino has published and lectured throughout the scientific and medical communities and is very accomplished in his field. Dr. Gerbino graduated from the Philadelphia College of Pharmacy with a PharmaD and a BS in Pharmacy and Science where he currently has been an administrator for over 30 years.
In 2005, TargetRx raised $15 million in venture funding from Quaker BioVentures. According to the press release from the Philadelphia Business Journal, TargetRx has amassed a database of over 7 million questions posed to over 60,000 physicians and has developed sophisticated programs to help pharmaceutical developers to market existing and new drugs effectively. According to Richard S. Kollender, principal at Quaker BioVentures at the time, pharmaceutical companies are spending huge amounts of money on acquiring research and finding out what is actually happening in the marketplace. What most drug companies buy is historic data, which can be useful but is not very predictable. With TargetRx, drug companies can find subtle changes and not so subtle changes which in effect can be more proactive in a company’s marketing strategy.
In 2006, the CEO of TargetRx, Michael Luby, won the Philadelphia Business Journal’s 40 Under 40 Award for his role in developing TargetRx and his leadership as well. According to the Business Journal, Mr. Luby has established a vision for TargetRx and has set the company out on a course for success. Since the company’s foundation, Mike Luby has been a driving force in the success of TargetRx and under his leadership the company has earned over $50 million.
Acacia Partners is based in San Francisco, California and focuses on building service businesses in the healthcare industry. Other companies that Acacia has invested in include Abiton.com, AmeriGroup, Arcadian, CompHealth, LabVelocity, and more.
Acacia’s main strategy is to invest in early stage companies that have innovative healthcare services, business services that focus on healthcare clients, or information technology that addresses the healthcare community.
Domain Associates is a vc firm that manages capital for companies in the life sciences industry. Domain Associates was founded in 1985 and has been actively involved in creating vc backed companies that are now the core of the biotech industry. Domain Associates currently manages over $5 billion in annual revenues.
TargetRx does have a few competitors. One of TargetRx’s main competitors is HealthNation, which is a vanguard company that makes videos aimed at people who have health problems and teaches those people to control their health problems. HealthNation was founded in April of 2005 and is a privately owned corporation based in New York. HealthNation has four people on its management team and has two people on its board of directors.
Another major competitor of TargetRx is iMedExchange, which links physicians with other physicians and allows them to share information with each other. iMedExchange is a privately owned corporation, which is based in Seattle, Washington and has one person in its management.
A third competitor of TargetRx is Practice Fusion which is a privately owned corporation that tends to the needs of all facets of the healthcare environment. Practice Fusion does this by having a program that links phisicians with their patients and allows them to communicate important health-related information to each other. Practice Fusion is based in San Francisco and was founded on January 1, 2003, employs 15 people, has three people on its management team, and has three people on its board of directors.
For more information on TargetRx, click here.