Healthcare Assignment

Sonali Ila Ekka

June 2021
Content Flow

1. Problem statement

2. Healthcare Digital Service Offering: Landscape and Identification

3. The Healthcare Social Media (SM) Segment

4. Healthcare Social Media (SM) and Pharma

5. Indian Professional Networking Services for Doctors

6. Deep Dive Into Potential Companies

7. Docplexus Valuation

8. Annexures
Problem Statement

• Prepare a business case for acquisition of a national target who offer digital solution to pharma and has
doctor network of their own

• Please do a landscape analysis of digital players catering to pharma with their own doctor network and
shortlist a target based on certain rating criteria
 Healthcare Digital Service Offering: Landscape and
Identification
“Prepare a business case for acquisition of a national target who offer digital solution to pharma and has doctor network of their own”

Different digital health solutions cater to

pharma cos., doctors and hospitals. Some
cater to both doctors and pharma cos. directly
or indirectly.

Healthcare Social Media is the ideal segment

which caters to both pharma companies and
doctors, and even has relatively larger
database of doctors at any given point of
time

Fig.: Relevance of digital services to pharma cos. vs size of doctor network

The Healthcare Social Media (SM) Segment
By Healthcare Social Media, we mean social media used by healthcare professionals

Some statistics on use of social media and usage by doctors:

• The global SM analytics market size is expected to grow at 34.1% CAGR from $3.6bn in 2020 to $ 15.6bn by 2025 (source: WiseGuy Reports)
• Global Pharma and Healthcare SM Market was valued at $35.24bn in 2017 and is expected to grow at 15.2% CAGR during 2018 – 25 (source: WiseGuy Reports)
• 90% doctors used SM and 65% used it for professional reasons (source: NCBI)
• 51% used SM for marketing (source: MM&M)
• 31% physicians use SM for professional networking (source: MedTechMedia)
• 67% doctors use SM for professional purposes, often preferring an open forum as opposed to a physician-only online community. (source: EMR Thoughts)
• 60% of physicians’ most popular activities on social are following what colleagues are sharing and discussing. (source: Health Care Communication)

Main reasons doctors use social media are: Drivers for SM usage by Doctors:
• Self promotion through patient interaction and content generation 1. Growing internet reach and smartphone usage
• At personal level through own accounts 2. Rising demand by patients for online presence

• Engagement on behalf of their hospitals 3. Age demography of doctors (younger doctors are more likely to be active on SM)
4. Digital health communications boosted by Covid19 pandemic
• Professional networking and job search
5. Digital presence of hospitals
• Learning and Knowledge sharing
Healthcare Social Media (SM) and Pharma
Social Media and Networking Websites Generic Social Media Professional Network for Doctors
cater to pharma companies through: Pros 1. More no. of doctors as users 1. Database available for websites offering
2. More content generated subscriptions
• Focused advertising (ad space, SEO, 3. Global reach 2. High relevance and focus due to
SEM etc.) 4. Superior tech capabilities to help exclusively healthcare content
businesses 3. No restrictions on advertising
• Enhance brand presence 4. Wider range of healthcare content types
5. Wider range of services for healthcare
• Engagement with target users businesses
• Influence user behaviour
Cons 1. May not have a database of doctors who 1. Mostly limited to regional or national
• Market research and user insights for are users presence
product strategy 2. Restrictions on healthcare advertising in 2. Limited tech capabilities like Facebook
public forums etc. to help businesses
3. Limited range of services for medical
businesses
4. Low relevance and dilution due to
content on diverse topics
Dedicated professional networking sites 5. Limited variety of healthcare content
for doctors have the desired mix of:
1. Directly catering to pharma cos. Examples Facebook, Twitter, Youtube, LinkedIn, Quora Sermo, Doximity, DailyRounds, WeMedup,
2. Having a considerable size of doctor Figure1
database
Indian Professional Networking Services for Doctors
S. No. Company Name Doctor base Services for Services for Presence Funding Revenue Sustainability Overall
doctors Pharma status Score
1 Curofy* 2 1 1 1 1 3 1 10
2 Dailyrounds* 1 3 2 2 1 1 1 11
3 Docplexus 3 3 1 2 1 2 1 13
4 PlexusMD 4 3 2 2 1 4 1 17
5 Healthpole 7 2 1 2 2 5 1 20
6 eMediNexus 6 3 1 2 2 5 2 21
7 GoodMD 5 4 2 2 1 5 2 21
8 Docintosh 7 3 1 2 2 5 1 21
Note: Scores assigned in ascending order of performance, hence lower the score the better
* Curofy and Dailyrounds have been acquired by Roundglass and M3 respectively

Table: Business Performance Comparison of Major Indian Professional Networking Services for Doctors
8 major Indian professional networking websites for doctors were ranked across the following parameters: Doctor network size, Range of
services for doctors and pharma, Presence, Funding, Revenue and Sustainability. (Sustainability implies self sustained business model.
Certain websites/ solutions like GoodMD and eMediNexus draw credibility and expertise from stronger parent companies and hence may
not be able to perform as well on separation from those parent companies.

Some marketing communication, online publications and eLearning companies were also observed but they haven’t been rated here due
to insufficient data. They’re: IJCP Group, Brandcare, eMEdicoz and Buzz4Health
Deep Dive Into Potential Companies
Company Name Strengths
Docplexus 1. Founded in 2013, HQ in Pune
2. Greater range of services aligned to cater to pharma cos.
3. Dedicated PR and Marketing service called Pharmabuzz for pharma cos.
4. Large pharma client base (60+ nos.)
5. Greater quantity of content generated (e.g. 13.3k subscribers and 1,464 videos on Youtube
6. Good mix of leadership and employees from medical, tech, management background
7. Large team size (100+ employees)
8. Investor backed with $705k funding, $1.16 mn Estimated Revenue in 2018, valuation of $6 bn in 2016
9. National presence only
PlexusMD 1. Founded in 2014, HQ in Ahmedabad
2. Leadership team from medical and management background
3. Investor backed
4. Focus more on job search for doctors
5. Relatively lower quantity of content generated (e.g. 1.38k subscribers and 24 videos)
6. National presence only
Healthpole 1. Founded in 2015, HQ in Pune
2. Additional services: eCommerce for doctors
3. National presence only

Based on the above points, Docplexus comes across as a strong choice for acquisition
Note: Curofy and Dailyrounds have been excluded because they have already been acquired
Docplexus Valuation
• As per public data available, Docplexus was valued at $6mn in 2016
• Comparing the valuation and revenue data of a similar company Curofy, and assuming a
similar growth rate, Docplexus may be valued at $30mn to $35mn in 2022

• By DCF valuation method, assuming discounted rate of 20% and terminal rate of 3%, the
value is $45mn in 2022
Thank You!
Annexure: Company Comparison
Annexure: Valuation Workings
 Resources
https://www.crunchbase.com/organization/docplexus/people
https://www.prnewswire.com/in/news-releases/docplexus-indias-leading-social-network-for-doctors-is-now-175000-members-strong-612509213.html
http://www.businessworld.in/article/Docplexus-Surpasses-250-000-Members-Retains-Position-as/01-11-2017-130103/
https://www.sundayguardianlive.com/health-wellness/7887-why-digitisation-medical-sector-good-our-health
https://www.vccircle.com/exclusive-online-platform-doctors-healthkumbh-gets-seed-funding/
https://www.linkedin.com/company/docplexus-online-services-pvt-ltd-/
https://pharmabuzz.docplexus.com/home
https://www.linkedin.com/pulse/bridging-pharma-doctor-communication-gap-docplexus-survey-chandra/
https://www.prnewswire.com/in/news-releases/docplexus-surpasses-250000-members-retains-position-as-indias-largest-online-community-of-doctors-654384373.html
https://www.quora.com/What-is-business-model-of-Docplexus
https://curofy.com/
https://tracxn.com/d/companies/curofy.com
https://inc42.com/startups/just-networking-app-doctors-curofy-creating-robust-healthcare-support-system-india/
https://www.indiantelevision.com/mam/marketing/mam/how-digital-technologies-are-reshaping-pharma-marketing-in-india-190905
https://www.vccircle.com/exclusive-investor-roundglass-partners-takes-over-doctor-networking-app-curofy/
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/curofy-to-expand-into-middle-east-triple-its-team/articleshow/70376991.cms?from=mdr
https://emedicoz.com/web/home
https://www.emedinexus.com/index.php
http://bwdisrupt.businessworld.in/article/eMediNexus-A-Doctor-s-Networking-Platform-to-Sharpen-Their-Clinical-Skills/06-05-2016-97749/#:~:text=We%20have%20more
%20than%2040%2C000,4000%20%2B%20unique%20doctor%20visits%20daily.
http://www.ijcpgroup.com/#home
https://www.apollo.io/companies/IJCP-Group/54a11df869702da10fff4701?chart=count
https://www.tofler.in/ijcp-publications-limited/company/U74899DL1990PLC040142
https://yourstory.com/2016/07/buzz4health/amp
https://www.buzz4health.com/pages/home
https://docintosh.com/
https://yourstory.com/2015/03/plexusmd-job-portal-for-doctors/amp
https://www.expresshealthcare.in/news/eris-lifesciences-and-plexusmd-come-up-with-saarthi/412456/
https://yourstory.com/2016/09/curofy-growth/amp
https://www.medianama.com/2019/01/223-lybrate-launches-goodmd/
https://www.biospectrumindia.com/news/74/12355/lybrate-launches-goodmd.html
https://etactics.com/blog/social-media-and-healthcare-statistics#Usage-by-Doctors
https://growjo.com/company/Docplexus