Veeva CEO: Revolution in Medicine | Mad Money | CNBC

This video features an interview with Peter Gassner, CEO of Veeva Systems, on CNBC's Mad Money, where he discusses the company's significant growth and its pivotal role in the ongoing revolution in medicine. The conversation highlights Veeva's cloud-based software solutions for the life sciences industry, emphasizing how these tools enhance efficiency, ensure regulatory compliance, and support pharmaceutical companies in bringing new drugs to market. Gassner explains Veeva's journey from a niche player to a dominant force, particularly with the success of its Veeva Vault platform, and outlines the company's future trajectory amidst the emergence of precision medicine and the increasing integration of artificial intelligence in healthcare.

The discussion delves into Veeva's value proposition, asserting that their cloud software not only saves individual customers money but also significantly increases the overall efficiency of the $1.7 trillion pharmaceutical business. Gassner elaborates on how Veeva's integrated platform addresses various needs, from capturing clinical trial data and managing government regulations to optimizing sales force effectiveness. He underscores the importance of a unified, cloud-based system for life sciences companies, which has driven the rapid adoption and expansion of Veeva's offerings, leading to the company surpassing its revenue targets and projecting a total addressable market exceeding $9 billion.

A significant theme explored is the "revolution in medicine," characterized by the shift towards precision medicine, cell therapy, and gene therapy. Gassner positions Veeva as a crucial enabler of this transformation, stating that their technology is "the brains behind a lot of that stuff" when Jim Cramer brings up artificial intelligence in healthcare. The interview touches upon the increasing valuation of innovative biotech companies, citing the acquisition of Spark Therapeutics by Roche as an example of the premium placed on cutting-edge science in areas like gene therapy for hereditary conditions. Veeva's collaboration with both large pharmaceutical companies and smaller, innovative biotechs like Spark Therapeutics and Bluebird Bio further solidifies its role at the forefront of this medical paradigm shift.

Key Takeaways:

• Veeva's Dominance in Life Sciences Cloud: Veeva Systems has established itself as a leading provider of cloud-based software for the life sciences industry, offering a comprehensive platform that supports pharmaceutical companies from clinical trials to commercial operations and regulatory compliance.
• Efficiency and Cost Savings: Veeva's solutions are presented as critical for increasing efficiency across the $1.7 trillion pharmaceutical sector, not only by saving individual customers money but also by streamlining complex processes involved in drug development and delivery.
• Veeva Vault's Success: The Veeva Vault platform has been a significant growth driver, expanding from 5% to nearly 50% of the company's revenue, demonstrating the industry's demand for integrated, cloud-based applications for various operational needs.
• Addressing Industry Needs: Veeva's software helps pharmaceutical companies capture clinical trial data, comply with government regulations, and enhance the effectiveness of their sales representatives, covering critical aspects of the drug lifecycle.
• Early Stages of Market Penetration: Despite reaching over a billion dollars in sales, Veeva's CEO believes the company is still in the "very early days" of the industry cloud for life sciences, with a total addressable market estimated at over $9 billion and continuous product expansion.
• Enabling Precision Medicine: Veeva is strategically positioned to support the "revolution in medicine" towards precision medicine, cell therapy, and gene therapy, which aim to provide highly targeted treatments for individuals.
• AI as a Core Component: Veeva plays a significant role in the artificial intelligence component of modern healthcare, with its CEO confirming that Veeva's technology is "the brains behind a lot of that stuff," aligning with the vision of AI making healthcare more human.
• Innovation Drives Acquisitions: The interview highlights how innovation in areas like precision medicine and gene therapy is driving significant acquisitions in the biotech sector, as larger pharmaceutical companies seek to integrate cutting-edge science.
• Support for Diverse Clients: Veeva works with a broad spectrum of clients, from large pharmaceutical corporations to smaller, innovative biotechs, facilitating groundbreaking work in new therapeutic areas.
• Strategic Product Development: The company's strategy involves continuously adding new products to its portfolio, ensuring it remains at the forefront of technological advancements and expanding its market reach within the life sciences ecosystem.

Tools/Resources Mentioned:

• Veeva Systems (cloud-based software)
• Veeva Vault (specific product platform)
• Salesforce.com (mentioned in context of Peter Gassner's background and partnership)
• "Deep Medicine: How Artificial Intelligence can make Healthcare Human Again" by Dr. Eric Topol (book reference)

Key Concepts:

• Cloud-based Software: Delivery of software as a service over the internet, enabling scalability, accessibility, and efficiency for life sciences operations.
• Life Sciences Industry Cloud: Specialized cloud platforms tailored to the unique regulatory, data, and operational requirements of pharmaceutical, biotech, and medical device companies.
• Precision Medicine: An emerging approach to disease treatment and prevention that takes into account individual variability in genes, environment, and lifestyle for each person.
• Cell Therapy & Gene Therapy: Advanced therapeutic approaches that involve introducing new genetic material or cells into a patient's body to treat or prevent disease.
• Artificial Intelligence (AI) in Healthcare: The application of AI technologies to improve various aspects of healthcare, from drug discovery and clinical trials to diagnostics and patient care.
• Regulatory Compliance: Adherence to government regulations and industry standards, particularly critical in the highly regulated pharmaceutical and life sciences sectors.

Examples/Case Studies:

• Spark Therapeutics Acquisition: The acquisition of Spark Therapeutics, a biotech company focused on gene therapy for hereditary blindness, by Roche, illustrating the premium placed on innovation in precision medicine.
• Bluebird Bio: Mentioned as another innovative biotech company working on new therapeutic approaches.