Model N: Life Sciences and High-Tech Shift to Automated Revenue Management
SAN MATEO, Calif., Feb. 4, 2025 -- Model N, a leader in revenue optimization and compliance for life sciences and high-tech companies, published its seventh annual State of Revenue Report, highlighting how executives in these industries are transforming their revenue operations.
The report reveals that while 87% of industry leaders are shifting toward automated revenue management operations, nearly 60% still rely on multiple solutions. Additionally, 62% are using or planning to implement generative artificial intelligence (GenAI) for revenue optimization activities, including deal analytics, process automation, and forecasting.
This gap between automation goals and system integration presents both a challenge and an opportunity. The research found that companies with more than 10,000 employees are 51% more likely than smaller organizations to use a unified revenue management solution.
“Life sciences and high-tech manufacturers are using advanced technologies to automate and optimize revenue operations with data-driven insights,” said Suresh Kannan, Model N Chief Product Officer. “This year’s State of Revenue Report highlights the value of integrating GenAI for revenue management and transitioning to a unified solution. By harnessing AI and consolidating platforms, organizations can unlock greater revenue optimization opportunities, boost efficiency, and drive growth.”
Life Sciences Executives Focus on Regulatory Readiness and AI Adoption
Pharmaceutical companies are modernizing their revenue management approach to navigate a complex regulatory landscape. Pricing strategy is pharmaceutical leaders’ highest priority for revenue management-related strategic investment over the next two years. Eighty-seven percent of leaders report that they have already adjusted their launch plans in response to the Inflation Reduction Act (IRA).
State-level regulations like price transparency mandates and affordability boards are also a significant focus, with 76% of leaders concerned about how the regulatory changes may impact revenue management. Automation and technology, including GenAI, are key enablers, with 62% of pharmaceutical companies using or planning to use GenAI to strengthen revenue operations.
The medtech sector is undergoing a similar transformation. Regulatory changes like healthcare price transparency (45%) and the European Union’s implementation of the Medical Device Regulation (MDR) (40%) top the list of impacts on revenue programs. Nearly two-thirds of medtech companies are already seeing shifts as AI and automation are integrated into healthcare operations, and leaders are beginning to incorporate these approaches into their own company’s revenue optimization and compliance processes. Looking ahead, 38% of leaders are focusing on adapting to value-based care models, expecting further impacts on revenue optimization functions.
High-Tech Manufacturers Strengthen Channel Intelligence
High-tech companies are advancing their use of channel data – in fact, 87% regularly use channel sales data to inform price management and optimization processes. This industry leads in applying new technology to business processes, with 74% of high-tech manufacturers planning to implement GenAI solutions – the highest rate across industries surveyed in the State of Revenue Report.
Supply chain disruption continues to influence strategy, prompting 53% of companies to diversify suppliers, 51% to deploy new technologies, and half to implement sustainability initiatives. Additionally, 95% of high-tech leaders express concerns about grey market sales, implementing measures such as removing unauthorized sellers and enhanced contract enforcement.
For more specific information about revenue optimization in life sciences and high-tech, download the full 2025 State of Revenue Report.
About Model N
Model N is the leader in revenue optimization and compliance for pharmaceutical, medtech and high-tech innovators. For 25 years, our intelligent platform has powered digital transformation for pharmaceutical, medtech, and high-tech companies with integrated technology, data, analytics, and expert services that deliver deep insight and control. Our integrated cloud solution is proven to automate pricing, incentive and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 120 countries by the world’s leading companies, including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and Microchip Technology.
Source: Model N
