Member Paul Osborn introduced our guest speaker, his boss, Tim Gibbons, CEO and founder of Pharmacy OneSource. Another member, Kaj Pedersen, is the CTO of the company.
Paul Osborn makes the introduction.
Tim gave a brief history and description of the Factoria-based company with 120 employees.
The company was formed to provide chemical surveillance software services to hospital pharmacies. Since its founding in 2000, the company’s revenues have grown from $6 million to $22 million. Tim explained two of its principal products: Accupedia, a software program that assures accurate delivery of drip medications to pediatric patients based on algorithms that account for patient criteria; and Sentri7, a clinical surveillance software product that takes information from various hospital sources and analyzes it to make sure that appropriate medicines and dosages are being given to avoid unwanted medication events or inappropriate indications. Tim explained that these products are very useful to hospital pharmacies since the principal job of hospital pharmacists has become consultation on drugs for physicians and nurses, as the dispensing has become somewhat automated through machines on the floors in hospitals.
Tim Gibbons, with President John Martinka.
Tim described the company’s funding history, in which it relied on private and angel investors, rather than investment firms. This was done to ensure that the company was able to keep a long-term vision. In 2005, additional capital was raised to buy (and take the name of a company in Madison, WI), and this year, the company was sold to Wolters Kluwer, which has continued to use the Pharmacy OneSource name and is keeping it operating as a discrete division.
Tim identified the company’s keys to success as, first, thoroughly understanding its market domain and market command. Initially it outsourced the technology necessary to build its products, but it has gradually brought technology development in house.
Second, he described their careful and deliberate funding, starting with private investors and bootstrapping growth, rather than seeking outside professional investors.
Another key was a successful banking relationship with Northwest Bank, then known as Bank of Bellevue, and great support from its accountants and others such as Houser Martin in finding key personnel. A good management team with core competencies and a good business plan were also key factors, as was its commitment to execute successfully on its projections.
Tim Gibbons, with BBRC member Chuck Kimbrough.
Finally, Tim credited a knowledgeable board of directors and Minneapolis investment banking company, Triple Tree, with providing great service in developing and executing a good exit strategy plan.
Its products are now found in 1300 sites worldwide and in 20% of hospitals in the US. Its products are helping hospitals successfully operate in the new world of value-based payments now in use by the federal government in paying for its medical programs.