Global provider of cloud software and data solutions, Veeva Systems Inc. (VEEV - Analyst Report) recently launched Veeva Vault EDC and Veeva Vault eSource. These are the very first applications for clinical data management on a single cloud platform. The new applications along with Vault CTMS, Vault eTMF, and Vault Study Startup, are part of the company’s Veeva Vault Clinical Suite. It is a suite of unified cloud applications to streamline clinical operations and data management, from study startup to archive.
The focus of the company in this space is evident from the fact that it has added more than 120 clinical operations customers in less than four years. This includes the deployment of Veeva Vault eTMF at seven of the top 20 pharma companies in the world.
We note that volume of data in a Phase III study has risen by more than 50% since 2000 and as a result the cost per patient for a clinical trial has also increased. Traditional electronic data capture (EDC) systems add to the difficulties and expenses as these necessitate site staff to spend a significant amount of time managing clinical data. System set-up, maintenance, inflexibility, and a lack of integration have slackened the pharmaceutical industry’s ability to get data and quickly make decisions during trials. Hence, Veeva aims to expand its customer base through a modern cloud approach for clinical data management with Vault EDC and Vault eSource.
Vault EDC is a modern and adaptive cloud application and is built specifically for trial processes to accelerate critical workflows and enable real-time feedback. It will provide an intuitive, customer-friendly experience for quick and easy access to data.
Consumers can use Vault EDC either as a standalone application or to integrate electronic source data or eSource with Vault eSource to record patient data directly into a user-friendly mobile application. Vault EDC and Vault eSource are based on an open cloud architecture that allows them to be used with other third-party clinical systems.
Veeva Systems has ensured a strong recurring revenue mix through its focus on significant growth in subscription revenues, which are higher than service revenues.
Moreover, the latest launches are highly encouraging in our view. These applications are likely to fortify the company’s position and enhance its long-term growth prospects.
Veeva Systems currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical sector are Boston Scientific Corporation (BSX - Analyst Report) , The Cooper Companies Inc. (COO - Analyst Report) and NuVasive, Inc. (NUVA - Analyst Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Boston Scientific has gained 25.7% year to date, much better than the S&P 500’s 4.3% over the same period. Over the past three months, the company’s earnings estimates for the current year have inched up 0.9% to $1.10 per share.
Cooper has seen eight estimates move higher for the current fiscal over the past 60 days but has witnessed no downward movement. Accordingly, earnings estimates for the year have moved up by 1.2% to $8.42 per share. The stock recorded a gain of 33.6% year to date.
NuVasive recorded an impressive 31.96% gain over the past one year compared with the S&P 500’s 5.8%. Over the next five years, the stock is expected to see 16.7% earnings growth compared with the industry average of 14.8%.
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