Medidata Solutions ($MDSO) gave investors in the clinical trial software company something to celebrate Tuesday--a contract worth more than $100 million, making it the largest deal in the company's history. Medidata highlighted the deal in its second-quarter earnings and boosted its full-year revenue guidance.
An undisclosed top 10 pharma company inked the major deal with Medidata, CBS News reported. It's the kind of impressive result the company has managed to deliver quite consistently in recent years as more life sciences companies sign on to adopt its electronic data capture (EDC), clinical trial management systems (CTMS) and other software for clinical research. And the company has proven once more that it can compete and win business over its larger rival Oracle ($ORCL), which offers similar products as part of its healthcare business.
New York-based Medidata now anticipates revenue for the year between $217 million and $219 million, a jump from the previous guidance of $213 million to $217 million, Reuters reported, noting that it's the second time since March that the software provider has raised its annual revenue guidance. The company reported a record $53.5 million in quarterly revenue. A hitch in the earnings report was a fall in quarterly net income to $3.6 million from $10 million a year earlier.
Medidata has ambitious plans to become the go-to cloud-computing platform for clinical trials, and CEO Tarek Sherif indicated that the company has made progress toward that goal.
"Medidata's stellar second quarter results clearly demonstrate the value of our cloud-based platform, evidenced by significant customer growth and a landmark nine-figure contract," Sherif said in a statement. He later added: "We are in the early stages of an adoption cycle for cloud-based solutions and will continue to invest in our mission to become the technology backbone of the clinical development process."