Veeva Systems' (VEEV) dispute resolution with IQVIA (IQV) removes investor concerns about the risk of IQVIA cutting off access to CRM data, which was seen as a worst-case scenario during the legal conflict, Oppenheimer said in note Tuesday.
Both companies signed agreements that let their master data and third-party tools connect, and IQVIA will now join Veeva's partner program focused on technology, AI, and services, the investment firm said.
The deal is expected to boost demand for Veeva's non-CRM commercial products, which had slowed earlier due to legal uncertainty and blocked data access, Oppenheimer said.
IQVIA also joined Veeva's clinical partner program, which could eventually help increase use of Veeva's clinical trial tools, though the short-term impact is unclear. Oppenheimer analysts noted.
One possible downside for Veeva is that easier access to IQVIA data might reduce customer interest in switching to Veeva's own data product, Compass, which was seen as a backup option, according to the note.
Oppenheimer has an outperform rating on Veeva with a $325 price target.
Price: 285.41, Change: +3.31, Percent Change: +1.17
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.