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Veeva Systems Inc. VEEV, on Thursday, announced that Direct Data API is now included for no additional license fee as part of Veeva Vault Platform. This is expected to enable AI innovation in the life sciences industry.
It is worth noting that Veeva Direct Data API is a new class of API that makes Veeva Vault data accessible at a significantly faster pace, unlike traditional APIs, and is transactionally sound across large datasets.
The latest inclusion of the Direct Data API is expected to make the Veeva Vault Platform more attractive to the life sciences industry, thus boosting its overall business.
Likely Trend of VEEV Stock Following the News
Following the announcement, shares of the company lost nearly 3.6% till yesterday’s closing.
Historically, the company has gained a top-line boost from its various product innovations. Although the latest announcement is likely to be beneficial for VEEV’s top-line growth going forward, the stock declined overall.
Veeva Systems currently has a market capitalization of $36.39 billion. It has an earnings yield of 3.1%, favorable than the industry’s negative yield. In the last reported quarter, VEEV delivered an earnings surprise of 10.8%.
Significance of Veeva Systems’ Latest Announcement
Per Veeva Systems, with the ability to easily extract full or incremental Vault data reliably at very high speeds, customers and partners will be able to use the Direct Data API to power AI applications, analytics and system-to-system integrations. Direct Data API will also include connectors for Amazon Redshift, Snowflake, Databricks and Power BI later this year.
Management believes that the company’s breakthrough technology, Veeva Direct Data API, will likely enable new types of applications and integrations. Management also continued that as it is expected to provide customers and partners with easy and reliable access to large volumes of Veeva Vault data, this will likely fuel innovation in AI and analytics throughout the industry.
Industry Prospects in Favor of VEEV
Per a report by Precedence Research, the global AI in life sciences market is estimated to be $2.73 billion in 2025 and is anticipated to reach $13.89 billion by 2034 at a CAGR of approximately 19.8%. Factors like the growing demand for therapeutics to treat complex diseases and the growing need for improving productivity are likely to drive the market.
Given the market potential, the latest inclusion of Veeva Direct Data API in Vault Platform is expected to be a significant milestone for Veeva Systems and boost its business.
Veeva Systems’ Notable Developments
In January, Veeva Systems announced a product partnership with Zifo to aid biopharmas modernize quality control (QC) operations. By combining Veeva LIMS with Zifo's data integration and management platform, qcKen, companies will be able to import data directly from any source document or other LIMS into Veeva LIMS. This integration is expected to simplify master data configuration during LIMS implementation and site deployment, making it easier for companies to advance beyond legacy QC systems.