By design, Deerfield Agency has flown beneath the radar for the better part of its seven-plus years in existence.
In its first half-decade, the agency set about doing what young agencies do: aggressively courting new clients in the realm of small-to-midsized pharma and attempting to triple-overdeliver on behalf of existing ones. But a growth spurt in 2018 elevated Deerfield’s market cachet — and the combination of a second revenue surge in 2020 and an equity infusion in 2021 have the agency’s three partners thinking big.
“We’ve grown pretty quickly from word of mouth,” says Frank Burrell, one of the three partners. “But for all that growth, we’ve done very little from a business development standpoint. Basically, it’s time to start making some noise.”
There’s plenty to talk about. On the back of well-received assignments for agency mainstays Endo and UCB, as well as new work from Beiersdorf, Averitas Pharma (on Qutenza, for diabetes-related nerve pain) and Acerus Pharmaceuticals (on testosterone nasal gel Natesto), Deerfield saw revenue spike 65% in 2020, to $33 million from the $20 million generated in 2019. In the wake of the growth, the agency increased staff size from 45 full-timers at the end of 2019 to 60 a year later to 70 as of late March.
“The goal has always been to do much more than the usual AOR. We don’t get outworked or outhustled,” says partner Paul Brown.
Given the growth — and the reality that, especially for firms in the $20-$30 million revenue range, growth is expensive —it’s no surprise that Deerfield was open to bringing in a private equity partner. In February, the agency secured an investment of an undisclosed amount from Chicago-based Edgewater Growth Capital Partners. While the three Deerfield partners are noncommittal around their plans for the cash, it’s likely to include investments in enhanced technology and data capabilities and possibly an acquisition or two.
Going through the due diligence process in advance of closing the deal proved an eye-opening experience for the three Deerfield partners, especially as it pertained to their place in the broader agency landscape. A third party, charged with reaching out to Deerfield clients past and present, came back with rave reviews, partner Josh Benson reports.
“Usually you get somebody where there was a hiccup or a challenge … but the clients we work with every day are very pleased, thank goodness. They think we’re gritty, that we get stuff done,” he says.
The equity infusion will also allow Deerfield to continue to do right by its people. “It says to them that they can continue with that entrepreneurial spirit,” Brown says. “They have a sense of being able to run with their business as needed …. There’s no leash on folks who want to go and do and grow.”
The plan moving forward, then, can be summarized quite neatly: More of the same. “The growth in our numbers has been fabulous,” Benson says. “But the growth we’ve seen in people and in our relationships has been even better.”
. . .
The idea I wish I had…
The Doximity Dialer by Doximity was a well-timed, viable telehealth solution perfectly suited for the new abnormal of the pandemic. It was rapidly adopted by thousands of HCPs, leading to an increased user base on their medical network — and more communication sponsorship opportunities. Ultimately, Doximity delivered a unique solution providing value during a challenging time. — Frank Burrell
From the June 01, 2021 Issue of MM+M - Medical Marketing and Media
