INTEGRATIVE INSIGHTS
ON EMERGING OPPORTUNITIES

Integrative research means our extensive company research informs every thesis and perspective. The result is deep industry knowledge, expertise, and trend insights that yield valuable results for our partners and clients.

About the Authors:
Joseph Munda
Senior Vice President
Joe Munda has worked in finance and investment for 18 years and joined First Analysis in 2015. He works with entrepreneurs as an investor and as an advisor on growth transactions to help build leading businesses in healthcare technology. He has played a key role in building First Analysis' franchises in drug development technology and medical technology and has published several thought-leading white papers in those areas. He supports First Analysis' investments in Applied StemCell, Checkpoint Surgical, Medicinal Genomics, Sware, Transformative Pharmaceutical Solutions, VIDA Diagnostics and Yunu. Prior to joining First Analysis, he was an equity research analyst covering medical device and healthcare services companies at Sidoti & Co. Earlier, he worked in institutional sales at Bear Stearns/J.P. Morgan. He earned a bachelor's degree in finance from Fairleigh Dickinson University.
Walid Elmekki
Senior Associate
Walid Elmekki is a senior analyst with First Analysis. Walid joined the firm in 2021 after completing his internship. He previously interned at Wintrust Financial supporting the commercial banking division. Walid graduated from Ohio State University with a bachelor’s degree in finance and a certificate of leadership.
First Analysis Pharma IT Team
Joseph Munda
Senior Vice President
Matthew Nicklin
Managing Director
Tracy Marshbanks
Managing Director
Andrew Walsh
Managing Director
Walid Elmekki
Senior Associate
First Analysis Quarterly Insights
Pharma IT
Validation tech provides critical protection and a compelling opportunity
July 30, 2024
  • The proliferation of new technologies and capabilities in healthcare introduces new risks. How can companies keep error from creeping into big data sets and AI output? How can companies deploy new technologies and capabilities so they interact effectively with legacy systems? Validation processes are an unglamorous but critical key to addressing these challenges.
  • The FDA mandates critical systems, including software, used in manufacturing, storing and testing products be validated and kept in a validated state throughout their life cycles. Recently, the FDA has been encouraging life science companies to adopt computer system validation (CSV) software that enables a risk-based approach to validating computer systems.
  • As a result, the market for CSV software is seeing robust growth. We highlight CSV vendors we see making inroads in the market with software solutions that better meet life science companies' CSV needs.

TABLE OF CONTENTS

Technology's benefits come with challenges in making sure it works as intended

What is validation?

Computer system validation

Examples of systems requiring CSV

The FDA wants companies to use software for more efficient, accurate CSV

CSV market dynamics

Competitive landscape

Another CSV software user base: Outsourced validation service providers

Another technology tool for building a better healthcare ecosystem

Pharma IT indexes lose momentum, barely positive in past year

Pharma IT M&A: Notable transactions include Pro-ficiency and Model N

Pharma IT private placements: Notable transactions include CRIO and ProofPilot

Technology's benefits come with challenges in making sure it works as intended

The ongoing digital transformation of the life science industry has created significant opportunities to improve healthcare for patients worldwide. With developments like big data and artificial intelligence (AI), life science companies are now equipped to address complex challenges and bring innovative treatments to market more swiftly. But the proliferation of new technologies and capabilities also introduces new risks. How can companies keep error from creeping into big data sets and AI output? How can companies deploy new technologies and capabilities so they interact effectively with legacy systems across the large, diverse healthcare ecosystem? These are just a few of the challenges that have come with the digital transformation of the life science industry. Validation software is one of the keys to addressing these challenges.

What is validation?

Under FDA regulations that encompass good manufacturing practice (GMP) and related best practices (collectively known as GxP), it is essential to "validate" systems that directly or indirectly affect products and patients before they are used in production environments. These GxP-related systems include quality management systems, electronic document management systems, batch record systems, laboratory information management systems, clinical systems, product safety and compliance reporting systems, environmental monitoring systems, and systems for transferring and analyzing production data. Validation is defined as the collection and evaluation of data that establishes evidence that a process is capable of consistently delivering quality product. Validation is a compliance matter and is the responsibility of life science companies' quality teams. These teams ensure their organizations remain compliant with regulations, particularly FDA and European Medicines Agency regulations. They are responsible for maintaining data, documentation, and auditability over entire product life cycles, which often span 20 years and sometimes longer. Validation is a specialized field that requires extensive expertise.

©2024 by First Analysis Corporation.
One South Wacker Drive
  ·  
Suite 3900
  ·  
Chicago, IL 60606
  ·  
312-258-1400