Inovalon, a technology company focused on the transition from volume-based to value-based models in healthcare, joining in a partnership with global pharmaceutical outfit Boehringer Ingelheim on a diabetes product.
The announcements comes after a rough few months for the company, which has become subject to investigations into possible violations of federal securities laws.
The product is jointly governed by Boehringer Ingelheim and global healthcare concern Eli Lilly and Company. With Inovalon and its subsidiary Avalere entering the picture, the companies expect that stronger data integration and analytics capabilities will help support outcomes-based contracting, and thereby improve clinical care for patients.
On Dec. 12, Inovalon disclosed that it had failed to close a major transaction worth $40 million, forcing it to adjust its full-year 2016 guidance. This led some analysts to suspect larger financial issues for the company, and Inovalon's shares fell more than 36 percent during trading the next day. At least two firms are currently investigating whether the company did indeed transgress federal securities laws.
According to the company, the partnership with Boehringer Ingelheim "will leverage a more holistic and integrated support to outcomes-based contracting that will better align with payer needs and help improve quality and clinical/economic outcomes."
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