Organizing Life's Data: Veeva Systems

Posted by Yari Wajid on April 7, 2017

VEEV is another example of an innovative Tri-Valley business in our MTVX index. Founded in 2007, Veeva Systems, Inc. provides cloud software and data solutions to the life sciences industry.

Overview

Available on a variety of platforms (web, mobile, tablet), Veeva's cloud-based solutions are used by companies of all sizes to streamline critical business processes from R&D through commercialization while more effectively maintaining compliance with regulatory requirements. The Company serves over 500 customers ranging from large pharmaceutical corporations such as Merck & Co, Pfizer, and Gilead Sciences, to emerging companies such as BioMarin, Merrimack, and Alexion. For the trailing twelve months ending January 2017, VEEV generated $544 million of revenue and $122 million EBITDA, up 32% and 36%, respectively, over the prior year.

Opportunity

Having lacked an integrated solution that addresses the unique regulatory and procedural characteristics of the industry, the market for life sciences IT is ripe for disruption. Life sciences companies are heavily regulated and scrutinized through all phases of the product lifecycle, underscoring the need to keep consistent and comprehensive records of all touchpoints.  Existing systems are outdated and often consist of traditional enterprise software or custom built applications, and the initial fixed costs and required IT infrastructure (both hardware and personnel) make many of these solutions impractical for smaller companies. Most cloud-based solutions address a single business function and lack the seamless integration across the product lifecycle, from development through marketing. The VEEV platform addresses these needs through its various cloud solutions.

Solutions

VEEV operates under two primary categories:  Commercial Cloud and Veeva Vault

  1. Commercial Cloud: VEEV’s commercial suite is centered around its customer relationship management platform, around which it has recently introduced additional data and networking offerings:
    • CRM: VEEV's flagship family of applications for multichannel customer relationship management.
      • OpenData: VEEV's data solution containing demographic, license information, affiliations, and other information regarding healthcare professionals or organizations that is critical for compliance and effective customer outreach.
      • KOL Data: Offers more in-depth profiles of important healthcare professionals that includes information from conference presentations, clinical trials, grants, and social activity.
      • Network: enables life sciences companies to maintain complete and accurate master records healthcare professionals and organizations, as well as products, and helps clients address issues of duplicate or inconsistent records; can be operated in a private mode (relying solely on companies' proprietary internal data) or linked to VEEV's data solutions to enable more comprehensive and updated records.

Veeva Chart-1.jpg

  1. Vault: VEEV's content/information management solution used across virtually all business functions including medical, marketing, and R&D.  Similar to the way Network helps standardize data, Vault helps standardize content.

A Compelling Future

We believe Veeva has a number of desirable characteristics that provide it with a compelling future:

  • Strong competitive position: VEEV's leading industry position creates a powerful barrier-to-entry, network effects create a captive customer base, and as the company's vast network of data grows, it becomes increasingly difficult to replicate
    • Veeva CRM is the leading CRM platform within the life sciences industry, and is used by companies such as Bayer, Pfizer, and Novartis. VEEV’s exclusivity agreement with Salesforce provides a solid moat for the core CRM business.
    • New applications expand the platform across other business functions (clinical, regulatory, quality) and act synergistically to streamline processes and add to the mission-critical nature of the integrated platform.
    • Network effects create barrier to entry:  Veeva Vault becomes increasingly valuable as more users are added to the platform.
  • Long growth runway: With LTM revenue of $544 million and an estimated addressable market of $7 billion, VEEV has ample opportunity to grow into its valuation through increased penetration, and management has identified multiple avenues for further growth
  • Favorable industry dynamics: VEEV is in a strong position to take additional share during the replacement cycle as none of the legacy systems have adopted an industry-specific, cloud-based solution.    

The Tri-Valley Connection

Veeva is another example of an attractive business that has opted to remain in Pleasanton: In 2015, VEEV moved into an all-new 141,000 SF headquarters building located in Hacienda Business Park.  With an on-site fitness studio, loaner bike program, and cafeteria, VEEV’s new facility should attract potential employees from both near and afar and support VEEV’s robust growth well into the future.

Topics: Company Profiles, Tri-Valley Research

Get Started With  Mirador Today

Recent Posts

Subscribe to The Mirador View