Cloud-provider Veeva Systems CEO on supporting vaccine, drug development processes

This video provides an in-depth exploration of how Veeva Systems, an "industry cloud for life sciences," is driving the digitization of pharmaceutical and biotech companies, particularly in the context of vaccine and drug development. Peter Gassner, CEO of Veeva Systems, discusses with Jim Cramer the critical role of cloud software in accelerating the entire lifecycle of medicines, from clinical trials to commercialization and regulatory adherence. The conversation highlights the ongoing shift from traditional paper-based processes to digital solutions, emphasizing efficiency, compliance, and the long-term growth trajectory of the life sciences sector.

Gassner elaborates on Veeva's comprehensive platform, which includes over 30 applications designed to support various stages of drug development and delivery. He cites prominent customers like Moderna, Pfizer, and Glaxo, underscoring Veeva's direct contribution to speeding up the end of the pandemic through its technology. A key theme is the significant, yet still early, transition from manual, paper-heavy operations, especially in large-scale clinical trials. Gassner projects a substantial reduction in paper usage in clinical development within a few years, reinforcing the idea that digitization is a future-proof trend for the two-trillion-dollar life sciences industry, independent of the immediate pandemic-driven demand.

The discussion also delves into the evolving landscape of commercial operations and regulatory compliance within the pharmaceutical industry. Gassner acknowledges a potential shrinkage in sales forces (around 10%) due to increased efficiency driven by digital tools. He positions Veeva as a technology and data provider that enables this shift, supporting remote engagement with doctors through specialized, compliant software for activities like virtual meetings and digital sample signing. Furthermore, the interview touches on critical aspects such as cybersecurity vigilance against state-sponsored threats and the company's readiness to partner with administrations to navigate evolving regulatory environments, aiming to make healthcare more efficient and potentially less expensive through digitization.

Key Takeaways:

• Veeva as the Industry Cloud: Veeva Systems positions itself as the specialized "industry cloud for life sciences," offering a comprehensive platform with over 30 applications that support the entire drug lifecycle, from development and clinical trials to regulatory submissions and commercialization.
• Accelerating Drug Development: Veeva's cloud software plays a crucial role in accelerating the development and delivery of medicines, including vaccines, by digitizing critical processes for major pharmaceutical companies like Moderna, Pfizer, and Glaxo.
• Digitization of Clinical Trials: While significant progress has been made in commercialization, clinical trial management still heavily relies on paper-based processes. Veeva is actively working to digitize this area, with the CEO projecting a 50% reduction in paper usage within two to three years.
• Long-Term Industry Stability: The life sciences industry is a massive, two-trillion-dollar sector critical for human health and happiness. Its growth and importance are long-term trends that predate COVID-19 and will continue long after the pandemic, dispelling concerns about post-pandemic decline.
• Impact on Commercial Operations: Digitization is leading to increased efficiency in pharmaceutical commercial operations, potentially resulting in a 10% reduction in sales forces. This shift is beneficial for technology providers like Veeva, as companies adopt more digital tools to drive efficiency.
• Enabling Remote Engagement: Veeva provides specialized software to facilitate remote interactions between pharmaceutical companies and healthcare professionals, such as compliant virtual meetings and digital signing for drug samples, adapting to the rise of telemedicine and remote work.
• Cybersecurity Vigilance: Given the sensitive nature of pharmaceutical data and the high value of drug development, robust cybersecurity is paramount. Companies must assume constant threats and maintain vigilant defenses against attempts to access their systems.
• Regulatory Compliance Support: Veeva's technology aids pharmaceutical companies in adhering to complex industry regulations. The company anticipates partnering with administrations worldwide to provide technology that supports better and more efficient healthcare, even with potentially stricter regulatory environments.
• Efficiency Drives Cost Reduction: By digitizing and streamlining processes, Veeva contributes to making the overall value proposition of healthcare better and more efficient. This efficiency can ultimately lead to less expensive healthcare, though the distribution of these savings depends on administrative and policy decisions.
• Full Spectrum Support: Veeva's applications cover the full spectrum of pharmaceutical operations, including manufacturing, clinical development, regulatory submissions, and patient outreach, demonstrating its integrated approach to industry challenges.

Tools/Resources Mentioned:

• Veeva Systems Platform: The core cloud-based software suite for life sciences.
• Veeva's 30+ Applications: A suite of specialized software tools supporting various aspects of drug development, clinical trials, regulatory compliance, and commercial operations.

Key Concepts:

• Industry Cloud: A specialized cloud computing platform tailored to the unique needs and regulatory requirements of a specific industry, in this case, life sciences.
• Digitization of Life Sciences: The ongoing process of converting information and processes from analog (e.g., paper) to digital formats and leveraging technology to improve efficiency, data management, and compliance across the pharmaceutical and biotech sectors.
• Remote Engagement: The use of digital tools and platforms to facilitate interactions between pharmaceutical companies and healthcare professionals, replacing traditional in-person meetings.