Veeva (NYSE:VEEV) has led the development of cloud-based compliance and software solutions for the growing life sciences industry. The business has 2 main products, Veeva Commercial Cloud and Veeva Vault. Commercial Cloud is Veeva’s legacy business and provides features to customers including customer relationship management ("CRM"). Veeva Vault, provides document and content hosting and management. Veeva has a market capitalization of almost $21B, and will generate more than $1.0B in annual revenue over the next 12 months. The company’s products are especially important to maintain regulatory compliance yet also allow more active collaboration and marketing to customers and prospects. Veeva has delivered strong investor returns over the last 5 years of nearly 38% p.a. over this period.
Veeva has been a core holding of the Sustainable Growth portfolio.
Investment Thesis
Critical Software in a growing market
Veeva has managed to make significant headway by providing mission-critical software in the growing Lifesciences industry. The unique value proposition that Veeva has developed is the ability to assist life sciences businesses in proactive customer marketing and development of sales relationships while ensuring strict compliance with the extensive regulatory regime that the industry faces. Veeva’s dominance in the life sciences industry is so complete that it counts over 800 customers market and has over 80% market share for software applications within the life sciences vertical. Veeva’s customer list read like the 'Who’s Who' of the pharmaceutical and biotechnology industries and includes customers such as Abbott (ABT), Amgen (AMGN), Bayer (OTCPK:BAYRY), GSK (GSK), AstraZeneca (AZN).
Veeva Commercial Cloud is the legacy CRM product that helps life sciences businesses proactively market and drive customer penetration while ensuring strict compliance with regulatory requirements in terms of product disclosures and commission structures/incentive payments to resellers. This business accounts for approximately 50% of Veeva’s revenues. The faster-growing segment of Veeva‘s business is
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