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Oppenheimer sees Merck agreement as strong endorsement for Veeva’s Vault CRM

Oppenheimer analyst Ken Wong notes that Outperform-rated Veeva (VEEV) announced that Merck (MRK) has committed to Vault CRM. This marks Veeva’s sixth enterprise pharma Vault CRM commitment. The company is gaining momentum leading up to the September GA of Salesforce’s Life Sciences Cloud for Customer Engagement. The firm believes the announcement is incrementally positive, but it was broadly expected Veeva would secure a commitment from Merck, given its long-term strategic partnership with the company, and industry chatter that an agreement was an inevitability. That said, Merck is the largest pharma company globally by revenue and a strong endorsement for Vault CRM. Extrapolating current commitments would imply about 75% share for Veeva, which is still within investor expectations, Oppenheimer adds.

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