After besting rivals such as Oracle ($ORCL) in the pharma market, Veeva Systems aims to complete an initial public offering that values the cloud software provider at $2 billion, sources told Bloomberg. The speculation comes as Veeva emerges as a top player in providing sales software to pharma companies.
The news service casts Veeva in the same cloud camp as Salesforce.com and Athenahealth, both of which have grown successful businesses with web-based software models and, in the case of medical software provider Athenahealth, a focus on a specific sector. For Veeva, the key sector is pharma. Its growing roster of major customers includes AstraZeneca ($AZN), Eli Lilly ($LLY) and Novartis ($NVS).
Bankers pay close attention to the list of customers software companies bring to the table as they seek IPOs, and Veeva doesn't disappoint on this score. The company has won over big names in the industry with customer-relationship management (CRM) software built around the specific needs and regulations facing drugmakers. Veeva has also embraced the mobile trend in pharma, equipping pharma sales folks with web-based tools to operate with on the road.
And the company has a vision to layer on additional services to aid pharma customers.
"Veeva's a shining star that came out of nowhere," IDC analyst Eric Newmark told Bloomberg. "Veeva is No. 1 in pharma in the U.S., and they're not far behind Oracle for the global lead. They should pass them in the next year or so."
If Bloomberg's sources are correct, the market will be learning much more about Veeva's business as the company completes disclosures required to go public.
- check out Bloomberg's article