Model N Soars Over 30 percent on IPO

Michael Teague |

Model N Soars over 30 percent on IPOModel N (MODN), a Northern California software outfit that provides revenue management services for healthcare and technology companies, is having a stellar IPO day.  Starting off with a price of $15.50, the stock has soared 34.65 percent, currently trading at $20.87. The company raised about $104 million, and currently has a market cap of around $445 million.

Zack Rinat, the company’s CEO and founder, sees a role for management software that extends beyond the traditional cost-cutting and process-automation needs for things like human capital management in human resource departments, sales and marketing for customer relationship management, and finance for enterprise resource planning.  “Keep in mind that customers lose tens of billions each year by leaving money on the table because they do not effectively manage pricing, rebates/incentives and contracting,” he said in an interview on Wednesday morning.

The other part of the business consists of replacing the existing systems, a market in which he sees a $5 billion opportunity.

Prior to founding Model N, Rinat was the vice president and GM on NetDynamics, the business arm of SunMicrosystems, and of which he was also the founder.  He broke enters the current market, having perhaps forged a new chunk of it himself, by going straight to the big companies like Johnson & Johnson (JNJ), Amgen (AMGN), and Merck (MRK) in such a way that Model N has actually become their “strategic partners”.

Founded in 1999, the company will be competing against industry giants like Oracle (ORCL) and SAP (SAP) for market share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
AMGN Amgen Inc. 145.18 -15.39 -9.58 18,308,872
JNJ Johnson & Johnson 115.33 -0.37 -0.32 8,812,952
MODN Model N Inc. 10.30 -0.15 -1.44 149,045
MPX Marine Products Corporation 9.44 0.08 0.85 26,803
MRK Merck & Company Inc. (new) 58.84 -2.45 -4.00 20,261,243
ORCL Oracle Corporation 38.17 -0.05 -0.13 7,803,320
SAP SAP SE ADR (Sponsored) 87.89 0.23 0.26 461,223


Emerging Growth

Lomiko Metals Inc.

Lomiko Metals Inc is an exploration stage company. It is engaged in the acquisition, exploration and development of resource properties. Its projects include Vines Lake project and Quatre - Milles…

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

Dropbox, Inc.

Dropbox is a service that allows their users to bring all photos, docs, and videos anywhere, and share them easily. Any file saved to Dropbox will automatically save to all…