Are you “Mining for Gold” or “Selling Pickaxes?”
Veeva Systems is selling pickaxes, specifically CRM (Customer Relationship Management) tools and applications like their commercial data warehouses. Veeva’s global cloud-based software business model has been capturing a TON of customers (More customers = More Revenue). They have been having an endless supply of new partnerships and contracts.. Fundamentally, their year over year growth has been outstanding.
The biggest thing here is the genius and uniqueness of Veeva. By providing the CRM software, Veeva effectively shares the industry upside without intellectual property, regulation, or clinical trial pressures. Rather than chasing the latest and greatest patent, technology, or idea (Mining for Gold)… they offer CRM applications and commercial data warehouses to those companies.
Quick example – Redhill biopharma and Veeva have been working together to enhance the value of the opaganib phase 2/3 of the Covid-19 data… Redhill has grown 6% while Veeva has grown 77%.
Looking Forward… we believe Veeva makes for an excellent mid to long-term position.