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Veeva Systems: 2013’s Can’t-Miss IPO

Veeva is at the crossroads of two red-hot markets


Biotech has been red-hot in the IPO market this year. So have cloud operators.

And when you combine the two, you get Veeva Systems — possibly the most can’t-miss IPO of the year.

Veeva, which has filed for an IPO, operates a cloud platform for the life sciences industry, and its technology includes a number of solutions that help improve productivity and cut costs, such as …

  • CRM: Provides for drug sample tracking with electronic signature capture, healthcare affiliations management, and interactive, rich media demonstrations.
  • Vault: Allows for the secure storage of thousands of documents for the clinical trials process, such as helping with versioning and approvals.
  • Network (expected in late 2013): Makes it possible to create a healthcare provider master data set.

These modules also meet life sciences’ rigorous compliance requirements, and the software is available on a global basis. In fact, Veeva’s systems are translated into 27 languages.

Meanwhile, Veeva’s customers are a veritable who’s who of the healthcare industry, including Bayer Healthcare, Boehringer Ingelheim, Eli Lilly (LLY), Gilead Sciences (GILD) and Merck (MRK).

One huge driver behind the company’s success is its leadership, which includes a number of execs with strong backgrounds. CEO Peter Gassner was the senior VP of technology of (CRM), and President Matt Wallach, who was chief marketing officer at Health Market Science, a supplier of healthcare data solutions.

Veeva’s growth ramp has been spectacular. From fiscal 2011 to 2013, revenues shot up from $29.1 million to $129.5 million. More importantly, the company is already profitable — a pretty attractive IPO quality — with net income improving from $3.9 million to $18.8 million during the same period.

This is all the more attractive considering Veeva’s in very early stages; its S-1 states that the market opportunity is about $5 billion or so.

All in all, Veeva has every ingredient you need for a slam-dunk deal: profits, super growth and a focus on two of the market’s hottest industries.

Personally, I’d love to be the one making the pitch. This would be a tough deal to mess up.

Veeva plans to list on the NYSE under the symbol “VEEV.” Lead underwriters include Morgan Stanley (MS) and Deutsche Bank (DB).

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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