Veeva Systems Inc. VEEV is aggressively expanding its footprint in the international markets by making its Veeva OpenData available across five markets of Europe – U.K., France, Germany, Italy and Spain.
Veeva OpenData provides customer data and services to all healthcare professionals (HCP), healthcare organizations (HCO) and affiliations across major life sciences markets.
Owing to restrictive vendor contracts, life sciences companies fail to fully benefit from the customer data they purchase. Preliminary results from the Veeva 2015 European Life Sciences Industry Survey showed that 83% of life sciences executives are not satisfied with the quality of customer data they have access to.
Moreover, the upcoming European Federation of Pharmaceutical Industries and Associations’ (EFPIA’s) payment disclosure deadline in Jan 2016 makes it a necessity for life sciences companies to have high quality accurate data about spending trends at different customer levels.
However, only 39% of the companies surveyed have access to accurate data that allows them to track and collect spending data at HCP level. Further, only 29% have access to accurate data that enables them to track and manage HCP spending activity across country borders.
Veeva OpenData aims at addressing this acute deficiency. The solution offers accurate and high quality data to companies that can be used to improve customer satisfaction, track spending pattern and comply with local regulations.
We note that Veeva is making consistent efforts to best support customer data needs globally. Apart from Europe, Veeva OpenData is currently available in Australia, China and the U.S. Growing demand for the solution is helping the company win customers on a frequent basis. In the recently reported third quarter of fiscal 2016, Veeva signed its biggest OpenData deal in China.
We believe that growing traction of Veeva OpenData in the customer reference data market will enhance the company’s customer data business and provide significant growth opportunities over the long haul.
Meanwhile, Veeva’s CRM platform continues to experience healthy growth while the non-CRM products are starting to contribute to the overall business. We believe applications like Veeva Vault, KOL Data and OpenData hold substantial growth prospects. The recent acquisition of Zinc Ahead is expected to boost its competitive position in the fast growing compliance management market.
However, foreign exchange volatility and customer concentration are the major headwinds in the near term.
Zacks Rank & Key Picks
Veeva carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same space include Masimo Corp MASI, Natus Medical BABY and Fluidigm FLDM. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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