Oppenheimer says Roche’s commitment to Veeva Vault CRM carries greater weight

Oppenheimer notes that Veeva (VEEV) has announced Roche Pharma (RHHBY) will implement Vault CRM globally. Roche represents the tenth signed commitment, and represents the November commitment management hinted at during the Q3 call. While the firm assumed migration expectations were largely baked into the stock, the negative feedback from Veeva messaging “only” retaining 14 of the top 20 suggests there were still lingering concerns. Oppenheimer’s recollection of the prior arrangement is that Veeva managed the Genetech half of Roche. The firm confirmed Roche will be a broad global roll-out which suggests that the deal is expansive for Veeva. Investors have long assumed Roche would be a Salesforce flip considering the existing relationship with IQVIA, so Oppenheimer sees this transaction as an expectations/sentiment win-back and expansive to total contract value. The firm has an Outperform rating on Veeva with a price target of $325.