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Veeva Systems' (VEEV) New Offering to Optimize Lab Operations

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Veeva Systems Inc. (VEEV - Free Report) recently announced a new cloud application — Veeva Vault LIMS — with the aim of modernizing quality control lab operations. Vault LIMS, which is expected to be available in the second half of 2022, is a part of the Vault Quality Suite, which includes Vault QMS, Vault QualityDocs and Vault Training.

For investors’ note, Vault Quality Suite allows manufacturers to smoothly manage quality and lab operations in one unified solution. It also provides the power and scalability required across the life sciences value chain.

The latest addition to Veeva Systems’ portfolio is expected to strengthen its position in the global cloud application space.

Significance of the Launch

Vault LIMS’ addition to Veeva Vault Quality Suite is expected to aid manufacturing organizations to effortlessly connect their lab operations with the broader quality ecosystem. This, in turn, is likely to simplify sample management, test execution and lab investigation processes for faster batch release and reduced inventory carrying costs. Vault LIMS is expected to allow easy information sharing between lab users and partners, and deliver real-time data for better decision-making.

Per a renowned customer of Veeva Systems, the availability of Vault LIMS is expected to provide a powerful and modern cloud solution, including quality operations, thereby propelling greater efficiency and effectiveness across quality.

Per Veeva Systems’ management, Vault LIMS is likely to combine lab and quality applications to enhance productivity as well as advance time to market.

Industry Prospects

Per a report by Emergen Research, the global healthcare cloud computing market was estimated to be $25.90 billion in 2019 and is anticipated to reach $90.46 billion by 2027 at a CAGR of 17.9%. Factors like rising demand for cloud technology in healthcare facilities, increasing demand for cost-effective healthcare services and a shift toward value-based payments are expected to drive the market.

Given the market potential, Veeva Systems’ latest offering is expected to provide a significant boost to its global business.

Recent Developments

Of late, Veeva Systems has witnessed a few notable developments across its business.

This month, the company announced that the global medical products company, ConvaTec, has adopted Veeva Vault CDMS to provide electronic data capture, coding and data cleaning for their upcoming study on the detection of wound infections.

Also in September, Veeva Systems announced that Emmes is standardizing on Veeva Development Cloud applications across functional areas to enable greater speed and compliance. The company will use applications in Vault Clinical, Vault Quality, and Vault Safety suites to establish a technology foundation for delivering clinical research and pharmacovigilance services to its global customers.

Further this month, the company announced a new application — Veeva Vault Validation Management — which will enable more efficient and cost-effective validation lifecycle management.

Price Performance

Shares of Veeva Systems have gained 1.4% in the past year compared with the industry’s 9.2% growth and the S&P 500's 34.1% rise.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, Veeva Systems carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .

Henry Schein’s long-term earnings growth rate is estimated at 13.9%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEXX’s long-term earnings growth rate is estimated at 19.9%. It currently has a Zacks Rank #2.

West Pharmaceutical’s long-term earnings growth rate is estimated at 27.3%. It currently carries a Zacks Rank #2.