Last updated on June 26th, 2023 at 10:15 am
INTRODUCTION
The global Virtual Data Room market is expected to grow at a CAGR of 14.5% over the forecast period 2019-2027 to account for US$ 3.66 billion in 2027.
Lifesaving work of Life Science Companies is fraught with R&D and pharma due diligence time frames, multiple legal compliances across different continents. There is immense competition amongst the pharma companies based on their patented drugs, formulations and processing techniques. But because the research and developments costs are monumental, they also have the compulsions of co-operation and collaborations to bring down the high costs of research and development. Collaborating on specialized projects involves handling highly sensitive and expensive business information is no mean task, especially since it involves multiple teams working simultaneously on the project.
Moreover, there are many regulatory restrictions imposed by governments of various countries that need to be adhered to. All this needs an organized platform or system to ensure that the collaboration is well organized, efficiently co-ordinated, the company secrets are protected and all relevant compliances are met. This is why VDRs have gained acceptance in the pharmaceutical and life sciences industry.
VDRs in Healthcare and Life Science Companies help:
- Reduce the chance of Data security breaches
- Also reduces hassles of organizing all data at one place
- Using Q&A module, members can quickly clarify their doubts based on data
- Role & IP based data access can be provided to members
- VDR in life science makes due diligence easy and helps in decision making
- Like other industries, VDR in healthcare can be used in M&A, IPO, Fund Raising etc.
- It makes a secure & controlled collaboration between strategic partners
This is because VDRs largely offer efficiency, ease of use and the ability to track and monitor the processes so as to comply with both internal and external regulations. Patents don’t last long and often the partnership is also transient in nature, so data sharing has to be done fast yet secure environment to optimize the benefits for both the parties. Here the biggest advantage to a VDR is its intense security and data protection measures. In every deal there is an involvement of intellectual property worth millions of dollars, so due diligence has to be maintained on sharing parts of the information and collaborating this information in an extremely safe and secure environment with limited user access and maximum control. VDRs facilitate both parties to limit how much information is shared based upon the progress, so that the collaboration is not restricted in any way, but doesn’t breach the respective company’s integrity also.
The biggest advantage of a VDR in the healthcare industry is its ability to accelerate the due diligence process in partnering and licensing activity. VDRs open up partnership vistas for companies across borders, cultures, languages and time horizons. Once the deal process is initiated, virtual data rooms allow you to control and monitor the access to your company data such as marketing research, clinical trials and regulatory compliance. This means you can share enough information to form a successful partnership without compromising your businesses position, intellectual property and research. Additionally, once a deal is struck, you can retroactively revoke viewing permissions so that your data remains secured even after the deal. This allows for the balance between cooperation and competition between firms to be met.
Legally, virtual data rooms maintain all records of dealings and company activity in their secure multiple data centres, that are accessible whenever needed from anywhere in the world. This is important to meet regulatory requirements and can help the case of your business in case of any litigation of any sort in the future.
Health professionals agree that finding potential red flags is the hardest part of due diligence in healthcare and it is its biggest advantage for them to access VDRs.
The Confiex team specializes in providing premium virtual data room solutions tailored for businesses. With their vast experience in working with document sharing platforms, they have been actively supporting the Virtual Data Room community since 2015 by offering valuable information to users free of charge.