Four Target Archetypes for Platform Development
Strategic Rationale: AI-powered diagnostic tools with device integration, established reimbursement pathways, and strong data moat potential. Anchor acquisition candidate with clear bolt-on strategy.
Financial Profile
- Revenue: $40-70M (SaaS + device)
- EBITDA Margin: 25-35%
- Growth Rate: 20-30% CAGR
- ARR Component: 60-80% of revenue
- Customer LTV: 5-7 years average
- Gross Margin: 70%+ software, 45%+ hardware
Operational Criteria
- FDA 510(k) or De Novo clearance
- Clinical validation studies published
- Payer coverage decisions secured
- KOL advisory network established
- Direct sales force + channel partners
- Data platform with AI/ML capabilities
Example Target Profile: EEG-based cognitive assessment platform with AI interpretation, deployed across 200+ hospitals, CPT codes established, $50M revenue, 30% EBITDA margins, management team staying post-acquisition.
Bolt-On Strategy: Adjacent diagnostic modalities (fMRI analysis, sleep studies), cognitive training software, clinical decision support tools, patient monitoring devices.
Strategic Rationale: 505(b)(2) pathway for reformulated/derived compounds, reduced development risk, accelerated timelines, and differentiated IP position in emerging market.
Financial Profile
- Revenue: $10-30M (partnership/licensing)
- Development Stage: Phase IIa minimum
- Cash Runway: 18+ months to key milestones
- Licensing Revenue: $2-5M annually
- Partnership Deals: 2+ pharma collaborations
- IP Portfolio: 10+ patents filed/granted
Operational Criteria
- FDA IND approved for lead indication
- Clinical manufacturing established
- Regulatory strategy defined with FDA feedback
- Key target indications: PTSD, depression, anxiety
- Differentiated formulation/delivery mechanism
- Academic collaborations for clinical validation
Example Target Profile: Psilocybin derivative company with novel delivery system, FDA Breakthrough Therapy designation, Phase IIa data showing efficacy in treatment-resistant depression, $15M licensing revenue from EU partner.
Integration Synergies: Cross-promotion with digital diagnostics platform, shared clinical infrastructure, combined payer discussions, accelerated patient identification and monitoring.
Strategic Rationale: Hybrid clinic/virtual care platform with standardized protocols, integrated diagnostics, and value-based care contracts. Provides patient flow and data for platform companies.
Financial Profile
- Revenue: $25-50M (fee-for-service + VBC)
- EBITDA Margin: 15-25%
- Patient Volume: 10,000+ unique annually
- Location Count: 15-30 sites
- Payer Mix: 70%+ commercial, 20% Medicare
- Utilization Rate: 80%+ capacity
Operational Criteria
- Multi-state licensing and operations
- EMR integration and data analytics
- Quality metrics and outcomes tracking
- Standardized care protocols
- Provider network management
- Value-based contracts with major payers
Example Target Profile: Regional mental health network with 25 locations, integrated telehealth platform, value-based contracts with 3 major payers, $35M revenue, standardized depression/anxiety treatment protocols.
Platform Integration: Captive customer base for diagnostics tools, real-world evidence generation, clinical trial site network, integrated care pathway optimization.
Strategic Rationale: Central nervous system data aggregation and analytics platform serving pharma, payers, and providers. Horizontal infrastructure play with multiple revenue streams.
Financial Profile
- Revenue: $15-40M (SaaS + data licensing)
- EBITDA Margin: 30-45%
- ARR Growth: 40%+ annually
- Customer Count: 50+ enterprise clients
- Data Points: 1M+ patient records
- Gross Margin: 85%+ software platform
Operational Criteria
- HIPAA-compliant data infrastructure
- API integrations with major EMRs
- Proprietary AI/ML algorithms
- Real-world evidence capabilities
- Multi-tenant SaaS architecture
- Data partnerships with health systems
Example Target Profile: CNS data platform with EMR integrations at 100+ hospitals, AI models for treatment prediction, $25M ARR from pharma and payer clients, 40% EBITDA margins, growing 50% annually.
Strategic Value: Central data hub for all platform companies, cross-selling opportunities, predictive analytics for clinical development, population health insights, regulatory submission support.