Back in mid-March, I wrote a two-part series on the hunt for a COVID-19 vaccine.
You can read the first part of that series here and the second part right here.
At the time, I noted there were roughly a dozen or so companies involved racing to find a way to stop the deadly disease.
And while that sounded like a lot of scientific effort at the time, it turns out my analysis was too conservative.
We now have well over 100 research teams around the world scrambling for a vaccine or a drug that treats the disease.
Of those, at least two dozen hail from biotech or drug firms, many of them publicly traded.
I don’t know about you but I would love to get in on all that action with a great tech-centric firm that has superior earnings and price appreciation ahead.
And that is just what I’m going to reveal today. Doubling its earnings every 18 months, this “Biotech Goldmine” is set to crush the overall market…
The All-In-One Biotech Play
Now, then I first told you about this company back on October 29, 2019. I said then it was set to double in as little as three years.
So, the obvious question is: how is it doing? I’m glad you asked.
Since that column appeared, the S&P 500 has eked out a mere 2% gain. But this growth-centric firm has gained 56%, beating the broad market by a stunning 2,700%.
In other words, we are more than half way to my target in less than a third of the time. Now you know why I say it’s like owning our very own Biotech Goldmine.
Let me show you why there’s so much upside ahead.
The company in question is Veeva Systems Inc. (VEEV). This is an aggressive, growth-centric provider of essential cloud computing services to the life sciences industry.
Yes, Veeva boasts some very large customers. We’re talking Big Pharma leaders like AstraZeneca PLC (AZN), Bayer Aktiengesellschaft (BAYRY), GlaxoSmithKline plc (GSK), and Novartis AG (NVS).
But it also caters to smaller, cutting-edge biotechs like Karyopharm Therapeutics Inc. (KPTI), which has a market cap of just $1 billion, and Clovis Oncology Inc. (CLVS), a $6 stock valued at just $580 million.
These and about 600 more life sciences companies all use Veeva’s suite of cloud-based software tools to deal with all the intricacies of working in biotech.
Research on The Cloud
After all, whether you’re developing drugs or medical devices, testing them, or selling them, you face challenges very different from those of most other companies.
That’s because they’re not regulated by the FDA. Founded in 2007 in Pleasanton, California, Veeva is focused on helping companies overcome the complexities entailed in getting and maintaining regulatory approvals.
The foundation of the industry is research, which is Veeva’s strong suit. Its tools help set up studies, collect the data, and store it securely – all while making sure everything is compliant with strict regulations.
The effect is astonishing. For example, Vertex Pharmaceuticals Inc. (VRTX) managed to cut the time it takes to set up a research study from 12 weeks down to just six.
Keep in mind, studies are the lifeblood of biotech companies. So this 50% reduction is extremely valuable to a company like Vertex looking to speed up drug discovery.
But this doesn’t come from making scientists work harder. In fact, in the biotech world, hurrying or cutting corners can derail the whole process.
Instead, Veeva’s software is tailor-made for biotechs that want to run smarter. By making sure everything is in one place in the cloud, all test sites are always on the same page, and researchers can prepare the study in unison, without waiting for one another.
Streamlining Regulations
By storing all this data on Veeva’s platform, biotechs are automatically compliant with the required privacy regulations.
That’s great news, because another big hurdle for the life sciences industry is complying with regulations.
To make sure our drugs and medical devices are safe and effective, the onus is on biotech firms to make sure they keep meticulous records, including reports on side effects.
Veeva’s cloud software integrates all this and more in one simple package. The same software that researchers use to collect study data and submit it to regulators also keeps track of which worker needs to be trained and when.
Simple status screens let floor managers and other executives get a quick overview of their employees, how the production process is working, and the quality of test samples.
As for study data, Veeva’s data vault stores it all in the same way that the FDA will want to see it, making sure any approval process or random audit goes smoothly.
Veeva even uses AI to help companies sort incoming reports of side effects, as well as managing relationships with the insurers, hospitals, or physicians who buy the products.
A Biotech Convergence
The timing here is opportune as drug and biotech firms race to find a vaccine or treatment for COVID-19. There are now more than 100 studies underway, and Veeva is helping with many of them.
With clients like that, it’s no wonder Veeva is a veritable Biotech Goldmine.
Over the past three years, it has grown per-share profits by 47%. But let’s be conservative and cut that number down to 30% to account for a slowing economy.
Even then Veeva would still be on track to double in about 2.5 years.
Let’s call it a round three years.
Clearly, this backdoor tech play on all the best biotech’s in the world will continue to outperform the S&P 500 for years to come.
Cheers and good investing,
Michael A. Robinson
Source: Strategic Tech Investor