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Kythera's success story: How digital transformation significantly increased their company value
Having the right ERP infrastructure can make or break a company’s future. Kythera, the company behind Kybella—a successful injectable treatment for chin fat—knew this and made proactive, thoughtful decisions to ensure their long-term success. By implementing Microsoft Dynamics 365 with Merit Solutions, they positioned themselves for commercial success and ultimately increased their acquisition price by $500 million when AbbVie acquired them.
Building the Foundation for Success
Kythera was ready to scale, and their leadership made the critical decision to implement Microsoft Dynamics 365 with Merit Solutions. This wasn’t just about installing new software—it was about getting the design right, setting up the proper controls, and tracking critical batch information at a detailed level. By doing so, Kythera built a digital infrastructure that allowed them to add 150 salespeople and scale their operations seamlessly.
The $500M Acquisition Boost
When AbbVie approached Kythera for acquisition, they saw a company with credible capabilities, both digital and physical, that was ready to scale on its own. Kythera’s proactive approach gave them a "best alternative to negotiation" (BATNA), meaning that if AbbVie hadn’t acquired them, they were well-positioned to go commercial on their own. This strong position led to a $500 million increase in their acquisition price.
The Role of Industry Expertise
What made Kythera’s strategy so successful was their decision to work with experts who understood the unique challenges of life sciences manufacturing. They didn’t try to apply a horizontal ERP solution that wasn’t tailored to their needs. Instead, they worked with Merit Solutions, a solution that addresses over 600 life science-specific user stories. This industry-specific approach ensured that every aspect of their ERP system supported their goals and compliance requirements.
Kythera’s success story is a powerful reminder of the importance of getting your digital infrastructure right. With the right system, controls, and industry expertise, you can position your company for commercial success—and even add millions to your valuation. Ready to follow in Kythera’s footsteps? Let HSO help you build the foundation for your company’s growth.