Everyday Health expects growth from consolidated offerings and specialty brands

Everyday Health
Everyday Health

Everyday Health CEO Ben Wolin said future growth for the company will likely come from its ability to combine its audience and CRM services into one offering and generate revenue from health insurers and hospital systems.

He also cited aggressive spending from pharma brand managers looking to maximize sales of specialty and orphan drugs as another potential boon for the media company's business.

Advertisers “really want one vendor to work with and ideally they want someone who can sit on the side of the table and take risks in those type of arrangements,” Wolin told analysts during a second-quarter earnings call on Tuesday.

Miki Kapoor, president of Everyday Health, told MM&M in an email that the company decided to bolster its CRM capabilities through acquisitions so it can get to market faster and scale at an accelerated pace.

The company announced the acquisition of Tea Leaves Health for $30 million on Tuesday.

The addition of Tea Leaves Health is meant to bolster the company's CRM capabilities and allow it to generate revenue from health insurers and hospital systems and help grow a business unit it started last year for hospitals and health insurers, Wolin said.

Everyday Health reported sales of $54.8 million in the second quarter of 2015, up 32% from the same period a year ago. Advertising and sponsorship revenue comprised the majority of that revenue, accounting for $50.2 million.

Wolin said he expects orphan drugs, along with specialty medicines, to continue to drive future growth. “Rheumatoid arthritis, hepatitis C, even HIV, those areas of specialty continue to be strong and robust,” he noted, saying companies are spending “aggressively” in the category.

He said that impending competition in the PCSK9 inhibitor market, a new class of therapies that help lower cholesterol, could be a catalyst for heavy spending from drugmakers. Praluent, Sanofi's and Regeneron's PCSK9 inhibitor, was approved in July. Amgen's PCSK9 inhibitor, Repatha, is expected to receive an FDA decision later this month.

Everyday Health acquired rare-disease agency Cambridge BioMarketing for $38 million in March.