…Today, Veeva provides the cloud backbone for the $1.7 trillion life sciences industry where it rivals the likes of Medidata Solutions (MDSO), and counts companies like Pfizer (PFE), Novartis (NVS), Amgen (AMGN) and Eli Lilly (LLY) among its customers.

As drugmakers tackle the challenge of developing, testing and manufacturing lifesaving drugs, Veeva operates the cloud system in the background. Its dual roles include organizing doctor information for pharmaceutical reps and clinical trial data/graphs for companies.

Gassner calls the latter point “Veeva’s second act.” In total, Veeva estimates its total addressable market at $7 billion, though Gassner expects its nascent third act could add another $1 billion onto that.

Veeva launched 10 years ago with a single application to help pharmaceutical reps organize drug data to make stronger doctor pitches. Today, 60% of the globe’s pharma sales reps use what’s called Veeva CRM — customer relationship management — an iPad application.

But it’s Veeva’s second act that really has Wall Street keyed up, he said.
Veeva Vault was launched in 2011 with a single customer and the goal of organizing all content involved in clinical trials — documents, videos, images and data records. Vault represents about a third of Veeva’s total sales and targets a $4 billion total-addressable market, Gassner said.

He sees Vault as the reason for recent excitement around Veeva stock. Shares are up 29% since January and, on March 13, burst out of a cup-with-handle formation that began in November, topping a 45.95 buy point on a deeper Salesforce partnership. The stock is now more than 14% extended from that point.

That salesforce partnership is a great kicker, they are really looking to buy someone, why not Veeva?

Now, Vault is prepping for a potential third act by looking for opportunities outside life sciences — a first for Veeva. Gassner says Veeva could see an additional $1 billion opportunity in taking Vault to other manufacturing-heavy industries like chemicals and consumer packaging.

O’Neil’s Ash says success in that venture will be a “game-changer” for Veeva.

“Your brand becomes what you’re good at,” Gassner said. “If we become good at delivering this value outside life sciences, then I think over time we’ll become known for that.”

David Gardner likes a stock with multiple possible futures.

I really like this one and have been long since the early breakout. Very nice growth numbers, in the cloud and clearly some top notch customers it is making happy.


Veeva’s been on my watchlist for a while.

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Announcement today from a direct VEEV competitor and from CRM. VEEV is not mentioned in the article but clearly this is a direct competitive response to VEEV. The thread is only 3 posts long, but I think covers the issue.

Relevance in my opinion is that the CAP premium that VEEV has could take a chink if this competitive partnership becomes a material competitor in the clinical trials business that Vault is now in full rollout mode in.

I think the thread is explanatory in regard as well as my opinion that this is more likely a move to retain existing clients, try as they might to take back clients lost (less likely).

Nevertheless, perception is reality. At this point in time it is irrelevant, but worth keeping in mind over the next few quarters.

Always competitive threats out there. Very few amount to a hill of beans. But good to know them and to see if they will affect the CAP premium that VEEV has in spades.



Some more good discussion and details on this new competition.

I believe I am correct on this as Quintiles has no product or anticipated release dates. But I believe the entire post gets to the gist of the relevant information. W exception of what proprietary date Quintiles has that could cause customers to wait potentially years for this new multi year product roll out to be available instead of going with VEEV, who has a product, and a December date for EDS expansion of the product.

As such, like before, it is largely competing against legacy technology and a promise of some future product that will roll out in the next few years that will use Quintiles data.