Veeva Systems, which offers life sciences companies cloud-based commercial management software and business consulting services, is venturing into the consumer-facing side of things with the acquisition of Ostro.
Ostro has developed an artificial intelligence-based chat tool for pharmas that provides patients and clinicians with drug information drawn only from approved materials compliant with medical, legal and regulatory requirements.
Ostro’s chat tool can be integrated into drug brands’ websites, emails and text messages, where it answers direct questions from consumers and points to relevant resources. From there, it analyzes the interactions to give pharma clients data-backed tips for boosting engagement.
According to the company, its AI platform is used by “most” of the 20 biggest global pharmas, including the likes of Johnson & Johnson, Eli Lilly, AstraZeneca and Sanofi.
Veeva is paying approximately $100 million to acquire Ostro, according to this week’s announcement, comprising a combination of cash and long-term equity retention grants.
Post-acquisition, Ostro will continue to operate as an independent unit under the Veeva umbrella, still led by CEO Chase Feiger, M.D.
Eventually, per the announcement, the companies plan to “develop integrations” between Ostro’s technology and Veeva’s cloud-based software programs, with the aim of improving customer-centricity by connecting online and in-the-field interactions with patients and doctors.
“We’re focused on shortening the time it takes to identify and treat health conditions,” Feiger said in the release. “Brand content should be effortless to access and fully compliant by design. We built Ostro to remove friction so patients and doctors can get trusted answers with less clicking, thinking, and scrolling. With Veeva, we can bring that experience to many more patients, doctors, and brands.”