Safeguard Scientifics positions $10 million in financing for Quantia
By Mia Burns (email@example.com)
Safeguard Scientifics Inc. has deployed $7.5 million as part of a $10 million Series B financing for Quantia Inc. Existing investors, including Fuse Capital, contributed the remaining $2.5 million in the round. Quantia, headquartered in Waltham, Mass., was founded in 2006.
QuantiaMD is Quantia’s mobile and cloud-based physician relationship management platform that enables principal participants throughout the healthcare spectrum, including health systems, payers, pharma companies, and medical device companies, to reach, engage, and interact with their high-value physicians in a way that the company claims ultimately creates revenue opportunities, reduces costs, saves time, and improves quality of care.
The financing will help Quantia accelerate its sales and marketing efforts and continue to grow QuantiaMD, which recently surpassed 200,000 physician members, says Quantia CEO Mike Coyne. “We are doing two things,” he told Med Ad News Daily. “We will be adding staff, both in sales (pharma and new health system market) and marketing. We will be spending more as it relates to marketing efforts – trade shows, PR, and the like. To date, we have largely relied on word of mouth.”
Quantia utilizes a mix of social media; game mechanics, and engagement science to help its clients effectively convey relevant information and shared objectives with physicians and clinicians. Executives say these unique capabilities, coupled with the breadth and depth of Quantia’s extensive reach across practicing U.S.-based physicians, has helped Quantia’s clients to develop deep mutually beneficial relationships with physicians and clinicians in a way that leads to real changes in behavior.
“We are excited to work with a seasoned management team that has a deep understanding of technology, healthcare data, healthcare analytics, social media, and physician engagement,” said Gary J. Kurtzman, MD, managing director, healthcare at Safeguard, who, along with Jim P. O’Connell, principal, healthcare at Safeguard, will be joining Quantia’s board of directors. “Decisions made by physicians and other healthcare providers drive approximately 80 percent of the nearly $3 trillion annual healthcare spend in the U.S. Quantia offers a highly differentiated digital platform that actively engages its growing network of physicians by providing meaningful content and an online forum to discuss important and relevant issues. In addition, Quantia provides a unique way for health systems, payers, pharma, and medical device companies to actively engage physicians.”
Health systems, payers, and pharmaceutical companies have struggled with effective ways to communicate with physicians. On an annual basis, pharmaceutical companies spend $30 billion marketing and promoting to U.S.-based physicians. As the demand for physician time has increased and new regulations come into effect, access to physicians by pharmaceutical sales reps will continue to decline, and market dynamics point to an increasing shift to digital tools by pharmaceutical companies to engage physicians. Health systems and payers similarly struggle to effectively communicate policy changes, program changes and best practices to their networks of physicians and, in turn, face reform-driven pressure to align physicians around new payment and care models.
As a result of these dynamics, physicians are constantly being bombarded with messages. Traditional methods of communication, including mail, faxes, web portals, and banner ads, have demonstrated limited effectiveness in impacting physician behavior. To cut through the noise and hold a physician’s attention, information must be delivered objectively and conveniently, on the physician’s terms. Quantia solves these issues with a single comprehensive cloud-based and mobile platform that currently has an addressable annual market opportunity in the U.S. between $1 billion and $2 billion.
In late May, QuantiaMD and Hudson Global, a division of Draftfcb Healthcare, announced a partnership designed to deliver active digital content, live interactive broadcast events, and interactive web sharing on demand for QuantiaMD’s physician member network, called the ON Network. “The ON Network is certainly a component of what we are offering to pharma and is a component of the market opportunity,” Coyne told Med Ad News Daily.
Coyne expects QuantiaMD growth to occur in two ways. “We will continue to focus on our pharma business,” he says. “We see huge opportunity in that space and have only begun to capitalize on it. We are going at the health system market full-force. We believe that we are ideally suited to support clinical integration and physician communication and that there is an acute need in the space for the right type of solution.”
“A year from now, we would expect to have expanded significantly in the pharma market and to have added key health system clients to our roster,” Coyne told Med Ad News Daily. “We have just closed a deal with a notable health system and expect it to be a sign of things to come. We also expect to see our physician audience grow significantly and can reasonably see our way toward having over 50 percent of the physicians in the United States on our platform.”
Posted: September 2013