Prolifiq potential - Portland Business Journal: Page 1 of 2

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Portland Business Journal - October 12, 2009
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Friday, October 9, 2009 | Modified: Saturday, October 10, 2009, 3:32am PDT

Prolifiq potential
Software firm vies to become a $50 million company in 3 years
Portland Business Journal - by Erik Siemers Business Journal staff writer

Prolifiq Software Inc. is on pace to match last year’s 52 percent revenue growth by selling sales communication
software to high-tech and digital media companies.

Now CEO Jeff Gaus has his sites on the life sciences space. He believes his company’s software can help
pharmaceutical and medical device companies avoid costly mistakes caused by running afoul of federal Food & Drug
Adminstration marketing guidelines. Cathy Cheney | Portland
Business Journal

Prolifiq Software CEO

Gaus believes the move into a $400 billion industry will turn his $3.2 million, 30-employee Beaverton company into Jeff Gaus believes the
a 200-person, international business with $50 million in revenue. life sciences sector
provides unlimited
And that’s just in the next three years. opportunity for his
company.
Some of those expectations are borne from fortuitous timing. View Larger

Prolifiq has been dipping its toes into the life science space for the past year. It unveiled its life sciences product at a regulatory affairs trade
show about a week after Pfizer Inc. and a subsidiary agreed to pay $2.3 billion to settle charges that it illegally promoted certain drugs.

“If I could have picked (the timing), I couldn’t have done it much better,” Gaus said.

While drugs or other medical products might have a multitude of applications, the FDA prohibits the marketing of products for anything
other than their approved uses.

It has always been tricky territory for medical-related sales operations. Then came Pfizer, which was the largest so-called “off-label”
settlement on record.

“There’s a lot more concern since the Pfizer settlement,” said John Mack, publisher of online trade publication Pharma Marketing News
based in New Town, Pa.

Steven E. Skwara, a litigation attorney with the Washington, D.C., firm Epstein Baker & Green PC who primarily represents health care
clients, said companies in the life sciences space need to be vigilant, “perhaps more than any other business.

“In a lot of these cases, in the investigations, some of the so-called evidence will be the promotional materials,” Skwara said. “Some of it
might be problematic for various reasons. They might not have been vetted and given to the wrong people.”

That’s where Prolifiq comes in.

The company launched in the late ’90s during the dot-com bubble with a plan to incorporate rich media content into university e-mail
systems using an advertising-supported model.

It was financed by $4 million in venture capital, the majority from Oregon investors.

Gaus said the company quickly realized that model wasn’t going to work and in 2002 shifted gears.

Starting with high-tech clients like Cisco Systems, the company developed communication software to allow sales representatives to more
easily include corporate brand images and company-approved marketing materials into e-mail and text communications without the use of
bulky attachments.

The company later moved into the digital media space, first serving photo archiving company Getty Images with the idea that the
company’s client communication should logically incorporate Getty’s pictures.

Today, Prolifiq also works with other media outlets including Corbis Corp., the Associated Press and the British Broadcasting Corp.

A year ago the company was approached by Cincinnati-based medical device company AtriCure Inc., which was looking for a way to control
marketing content related to unapproved uses of products.

That set Profliq on its current path.

Now the company is marketing its software solution as a way for life sciences companies to not only promote their brands, but also comply
with applicable laws.

Its software includes an embedded rules-monitoring engine to ensure that outside communication adheres to company and regulatory
guidelines.

And on Monday it will announce a partnership with Portland-based EthicsPoint, a maker of a Web-based ethics reporting system. Prolifiq
will send alerts to a company’s EthicsPoint program when communication falls outside pre-defined boundaries.

Gaus said that to the high-tech and digital media world, Prolifiq is merely “an aspirin and a vitamin” enhancing the look and effectiveness

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Prolifiq potential - Portland Business Journal: Page 2 of 2

of sales communication.

But to the life sciences world, its service is more of a vaccine, inoculating companies from the costly risks of non-compliance.

A study by professors from the University of Pennsylvania and Atlanta’s Emory University showed that 170 companies cited for deceptive
marketing practices on the FDA Web site experienced a 1 percent drop in market value. That translates to an $86 million average decline,
according to the study, which is published in the November edition of the Journal of Marketing.

Now Prolifiq is gearing up.

It’s brought Maureen Shaffer, AtriCure’s vice president of marketing, to lead the company’s life sciences division. Last week it hired Jeff
Pearson as COO. Pearson had been with Clearwire, the provider of wireless broadband services, as vice president for customer operations,
and has experience building small companies into large ones.

Gaus hopes to eventually expand into other regulated industries such as financial services.

esiemers@bizjournals.com | 503-219-3418

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