According to insider sources, Veeva Systems has plans of having its initial public offering right in 2013. Thereby, it is stepping up a challenge to Oracle with its web based software for the pharmaceutical sales. Veeva is currently negotiating with several banks and Morgan Stanley is one of them. The overall valuation that Veeva is seeking is $2 billion. This is 10 times of the projected 2013 sales of the company. All the negotiations are currently kept private; any official confirmation is yet to be made on this matter. According to initial expectations, the revenue is expected to grow at 50% rate in 2013 and things look on track now. Veeva has already edged past Oracle in tools that help the drug makers to promote treatment to the doctors.
Veeva and other companies such as Athenahealth & Dealertrack Technologies have created a new business model where they specialize in a definite business such as car sales or medical offices. Incidentally, these companies have broken away from the model that is closely followed by Oracle to deliver software through internet to customers of different industries. Veeva has already been able to win over many of the top drug makers in the world; however, its share of the $22.3 billion in the cloud-computing market is still not big enough.
The Analyst of Researcher IDC, Eric Newmark considers Veeva to be a shining star that actually came out from nowhere. He added that Veeva is already the number 1 pharmaceutical company in US, even when it comes to global lead; it is not far behind Oracle. Eric believes that Veeva should be able to surpass Oracle even in global lead by end of 2014.
According to many analysts, word of mouth publicity has been the key to the success that Veeva has achieved. When it comes to the drug industry, the software developed by Veeva has built up a following as it’s able to track prescribing habits and tailor pitches to doctors as well. The sales representatives, on the other hand, can take advantage of the mobile tools and therefore document the samples given to the doctors. They can also get the electronic signatures required to the meet the regulations of drug marketing.
Only 25% of its revenue is used for product promotion, by Veeva. This is half of what Salesforce.com spends on advertising.