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Veeva Systems' (VEEV) Buyout to Bolster Clinical Offering

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Veeva Systems Inc. VEEV recently acquired Veracity Logic — a cloud software provider for randomization and trial supply management (RTSM). Interestingly, the team at Veracity Logic will join Veeva Systems to provide industry-leading software and services that can enable companies to streamline complex processes and accelerate clinical trials.

It is worth mentioning that the solution — offered as Veeva RTSM — offers fast setup timelines and a configurable feature set to cater to a wide range of randomization and supply needs. The solution has supported above 175 trials with sites in 60 countries and covered a variety of trial designs and complexities throughout all therapeutic areas in spaces like pharma/biotech, medical device, and diagnostics.

This buyout is likely to provide a boost to Veeva Systems’ already robust product portfolio.

Rationale of the Buyout

Per management at Veeva Vault R&D and Quality, the buyout can bring RTSM excellence to the company’s customers. Apart from this, the transaction is likely to strengthen Veeva Systems’ clinical offering with flexible and user-friendly RTSM abilities.

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Zacks Investment Research

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From Veracity Logic’s standpoint, this deal will enable it to scale its solution to a bigger market while continuing to provide customer success.

Market Prospects

Per a report by Grand View Research, the global clinical trial supplies market was worth $1.9 billion in 2020 and is projected to witness a CAGR of 6% during the forecast period (2021-2028). Globalization, the growing number of clinical trials, and the number of biologics and biosimilar drugs in clinical trials are some of the major factors likely to drive this market’s growth.

Hence, the transaction comes at an opportune time for Veeva Systems.

Recent Developments

In November, Veeva Systems unveiled two new digital tools at the European Veeva Commercial and Medical Summit Connect event. The company unveiled enhancements in digital tools that add new ways for seamless communication among healthcare professionals (HCPs) and field teams.

In the same month, Veeva Systems' Veeva Vault Quality Suite was adopted by the CBM with the aim of modernizing development and manufacturing services for sponsors.

Price Performance

Shares of the Zacks Rank #3 (Hold) company have lost 2% on a year-to-date basis compared with the industry’s decline of 20.9%.

Stocks to Consider

Some better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. TMO, McKesson Corporation MCK and NextGen Healthcare, Inc. NXGN.

Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).

McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.

McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.

NextGen Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 16%. The company currently carries a Zacks Rank of 2.

NextGen Healthcare’s long-term earnings growth rate is estimated at 8.5%. The company’s earnings yield of 5.9% compares favorably with the industry’s (4.1%).


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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

McKesson Corporation (MCK) : Free Stock Analysis Report

Veeva Systems Inc. (VEEV) : Free Stock Analysis Report

NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report

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