Baron Growth Fund added to its position in Inovalon Holdings, Inc. (INOV, Financial), a health care data and analytics company. The foundation of the company is a proprietary data set that contains more than 9.2 billion medical events from 127 million unique patients. This data powers Inovalon’s advanced analytics, which help insurers identify gaps in care, quality, data integrity and financial performance. Clients leverage Inovalon’s intervention platforms to drive improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape.
Inovalon serves a vast addressable market. The company addresses a $14 billion annual opportunity, and we believe that logical adjacencies can increase the total addressable market by 3–4 times. We are particularly excited by a new relationship with Quest Diagnostics, which can bring Inovalon’s analytics to the commercial market. Secular drivers, particularly the need to reduce inexorable health care cost inflation and a shift to value-based from consumption-based health care, will help to sustain Inovalon’s growth. (Neal Rosenberg)
From Ron Baron (Trades, Portfolio)'s Growth Fund fourth quarter shareholder letter.
