Shares of Veeva Systems Inc. VEEV increased almost 4% to close at $24.29 on Feb 29, 2016, following the news that Bristol-Myers Squibb BMY has selected two of the former’s applications to manage registration tracking and submission archiving on a worldwide basis.
The selected solutions – Vault Registrations and Vault SubmissionsArchive – are part of the Veeva Vault RIM suite. The cloud-based platform provides regulatory information management (RIM) solutions primarily to life sciences and pharma companies.
Vault RIM unites submissions documents, product registration and helps store the interaction into a single source for all regulatory information.
The latest customer win reflects growing demand for Veeva’s solutions among major life sciences and pharmaceutical companies. At the end of the third quarter fiscal 2016, the company had noted that 34 of the top 50 pharmaceutical companies were using Vault in some capacity.
Moreover, Veeva’s partnerships with the likes of Accenture ACN, Deloitte, HighPoint, ZS Associates and drug giant GlaxoSmithKline GSK is a key growth driving factor.
We believe applications like Veeva Vault and OpenData hold substantial long-term prospects. In late 2015, Veeva OpenData was made available across five markets of Europe – U.K., France, Germany, Italy and Spain. Apart from Europe, Veeva OpenData is currently available in Australia, China and the U.S.
Meanwhile, the acquisition of Zinc Ahead is expected to boost Veeva’s competitive position in the fast growing compliance management market. Further, extended use of Veeva’s Customer Relationship Management (CRM) application by customers continues to be a key growth catalyst.
However, foreign exchange volatility, intensifying competition and customer concentration are key headwinds in the near term.
Currently, Veeva has a Zacks Rank #3 (Hold).
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