New Veeva Pulse Findings Show Connected Engagement Creates an Advantage as HCP Access Drops

Rhea-AI Summary

Veeva Systems (NYSE: VEEV) unveiled findings from its Veeva Pulse Field Trends Report, highlighting a significant drop in healthcare professional (HCP) access, now at 45% compared to 60% eighteen months ago. The report underscores the effectiveness of a connected engagement model, where sales, marketing, and medical teams coordinate efforts to build more relevant and trusted HCP relationships. This approach helps biopharma companies overcome access barriers, increasing HCP engagement through digital and in-person touchpoints. The findings indicate that HCPs are more selective, often engaging with only three or fewer companies, and that specialties such as internal medicine, oncology, psychiatry, and urology have stricter access limitations. Despite these challenges, coordinated engagement has proven beneficial in extending conversations and improving treatment adoption.

Positive

• Connected engagement model helps biopharma companies build more relevant and trusted HCP relationships.
• Increased share of HCPs open to in-person and video engagement.
• Coordinated efforts between sales, marketing, and medical teams extend HCP interactions.
• Digital and in-person touchpoints give biopharma an advantage despite access challenges.
• Focus on relevance and real-time communication improves customer conversations and patient benefits.
• Companies leveraging compliant chat and synchronizing field activity with digital advertising strengthen engagement.

Negative

• HCP access has dropped to 45%, down from 60% eighteen months ago.
• Half of accessible HCPs meet with only three or fewer companies.
• Significant access restrictions in specialties like internal medicine, oncology, psychiatry, and urology.
• Overall reduction in HCP access could limit opportunities for engagement and treatment adoption.

Market Research Analyst

Current Trends: The Veeva Pulse report highlights a significant shift in healthcare professional (HCP) access post-pandemic. With HCP accessibility dropping to 45%, it’s clear that biopharmas are facing increased hurdles in reaching their target audience. This is important for investors to understand as it directly affects the efficacy of sales and marketing strategies.

Implications for Companies: The report indicates that half of the HCPs limit their engagement to three or fewer companies. This means companies that successfully implement coordinated engagement strategies have a significant competitive advantage. By integrating sales, marketing and medical teams, firms can build stronger relationships and improve treatment adoption rates. This approach is not just about maintaining contact but enhancing the quality of interactions, which could lead to higher long-term returns.

Industry Comparisons: In comparison to other industries where digital transformation has been swift, the biopharma sector appears to be catching up. The adoption of digital touchpoints and coordinated communication is becoming essential for staying competitive. Investors should note that companies investing in these technologies and strategies may see better financial performance over time.

Retail Investor Takeaway: For retail investors, this means focusing on companies that are not only acknowledging this trend but actively adapting to it. Firms that can seamlessly integrate digital and in-person engagements could potentially outperform their peers. Look for quarterly reports that highlight investments in these areas and improvements in engagement metrics.

Financial Analyst

Financial Ramifications: The drop in HCP accessibility to 45% from 60% is a clear indicator of changing market dynamics. This could initially seem like a negative signal; however, the shift towards a more connected and coordinated model could mitigate potential revenue losses. By becoming more selective and strategic, biopharmas can make the most out of limited access opportunities.

Revenue and Cost Impact: In the short term, companies may face increased costs as they invest in digital tools, training and coordination efforts across sales, marketing and medical teams. However, if executed correctly, these investments can lead to higher long-term revenue through better HCP engagement and increased treatment adoption. Investors should watch for any changes in cost structures and anticipate a period of adjustment where costs may rise before yielding benefits.

Investment Strategy: For investors, this indicates a potential uptick in both capital expenditure and operational expense in the near term, which may affect quarterly earnings. However, these investments are aimed at generating sustainable growth. Monitoring companies’ financial statements for strategic investments in technology and coordinated engagement models will be key indicators of future success.

Retail Investor Takeaway: From a retail perspective, it’s important to differentiate between companies that are merely reacting to reduced access and those proactively enhancing their engagement models. The latter are likely to offer better long-term returns. Pay close attention to earnings calls and financial reports that discuss these strategic shifts and related expenditures.

Medical Research Analyst

Understanding HCP Engagement: The report underscores the necessity for continual scientific education and trustworthy product information. With HCP access dropping, biopharmas must ensure that every interaction counts. The shift towards a coordinated engagement model means that companies are now focusing on quality over quantity. This is particularly important in specialties like internal medicine, oncology, psychiatry and urology, where access is even more restricted.

Clinical Implications: Effective coordination among sales, marketing and medical teams ensures that HCPs receive the most relevant and up-to-date information, which can significantly impact treatment adoption. Companies that excel in this area can influence clinical outcomes positively, further strengthening their market position.

Future Trends: The trend towards digital and in-person touchpoints indicates a hybrid model will likely become the norm. Companies that leverage technology for compliant communication and synchronization of activities will have an edge in educating and engaging HCPs comprehensively.

Retail Investor Takeaway: For retail investors, this highlights the importance of investing in biopharmas that prioritize scientific education and coordinated engagement. These companies are not only likely to see better adoption of their treatments but also enhance their reputation among HCPs, leading to sustained growth.

With less than half of HCPs now accessible, coordinated engagement across sales, marketing, and medical makes the most of limited time

PLEASANTON, Calif., May 23, 2024 /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today unveiled the latest findings from its Veeva Pulse Field Trends Report. The analysis finds that healthcare professional (HCP) access has returned to its pre-pandemic state. Today, 45% of HCPs are accessible to biopharmas compared to 60% eighteen months ago, with half restricting engagement to three or fewer companies.

Despite access challenges, some field teams are extending HCP relationships by becoming one connected resource across sales, marketing, and medical to build more relevant and trusted relationships. This new connected engagement model coordinates touchpoints across channels and roles to continuously build on the last interaction, helping companies overcome access barriers. Commercial teams are evolving as valuable partners to HCPs, responding to their needs faster and improving treatment adoption.

"We need three things from the industry to get the right patient outcome: trustworthy, high-quality product information, scientific education for us as physicians, and research insights," said Dr. Vital Hevia, a urologist on Veeva's HCP Advisory Board. "Physicians must be continuously educated. Every interaction should inform the next communication."

The latest Veeva Pulse findings on HCP access reveal that:

• Access drops but HCPs want to expand engagement channels: With 45% accessible to biopharmas compared to 60% in 2022, HCPs open to in-person and video engagement with field teams increase in share of overall access compared to prior years.
• HCPs are more selective across specialties: Half of accessible HCPs meet with three or fewer companies. Access also varies significantly across specialties with nearly 30% of those in internal medicine, oncology, psychiatry, and urology restricting access to just one company.
• Connected engagement breaks through: Coordinated engagement models where sales, marketing, and medical teams work together as a single resource are extending conversations with HCPs and increasing treatment adoption. From educating key experts before launch and leveraging compliant chat to share relevant content during meetings, to synchronizing field activity with digital advertising, biopharmas are strengthening engagement and improving outcomes.

"Despite a drop in HCP access, digital and in-person touchpoints seamlessly coordinated across sales, marketing, and medical teams are proving to give biopharmas an advantage in the field," said Dan Rizzo, vice president of business consulting at Veeva. "Companies focused on relevance and real-time communication, instead of reach and frequency, will pave the way for more impactful customer conversations that benefit patients."

About the Veeva Pulse Field Trends Report
Analyzing over 600 million HCP interactions and activities annually from more than 80% of commercial biopharma field teams worldwide, the Veeva Pulse Field Trends Report is the largest industry benchmark of its kind on HCP engagement. The analysis compiles real-time transactional data recorded in Veeva CRM and Veeva data products to deliver a view of engagement activity across life sciences. Indexed by Veeva quarterly, the data will help companies effectively and accurately benchmark performance to set the right, actionable goals for continued growth and impact.

Additional Information
To download a copy of the Veeva Pulse Field Trends Report, visit: veeva.com/FieldTrends
Learn more about Veeva Business Consulting: veeva.com/BusinessConsulting
Connect with Veeva on LinkedIn: linkedin.com/company/veeva-systems

About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest biopharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.

Veeva Forward-looking Statements
This release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-K for the fiscal year ended January 31, 2024, which you can find here (a summary of risks which may impact our business can be found on pages 9 and 10), and in our subsequent SEC filings, which you can access at sec.gov.

Contact:

Alison Borris
Veeva Systems
925-226-8821
alison.borris@veeva.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-veeva-pulse-findings-show-connected-engagement-creates-an-advantage-as-hcp-access-drops-302153747.html

SOURCE Veeva Systems

FAQ

What are the key findings of the Veeva Pulse Field Trends Report for VEEV?

The report highlights a drop in HCP access to 45%, an increase in in-person and video engagement, and the effectiveness of a connected engagement model across sales, marketing, and medical teams.

How has HCP access changed for VEEV?

HCP access has decreased to 45% from 60% eighteen months ago, with many HCPs limiting engagement to three or fewer companies.

What is the significance of the connected engagement model for VEEV?

The connected engagement model helps biopharma companies build stronger relationships with HCPs, overcoming access barriers through coordinated efforts across sales, marketing, and medical teams.

How are HCPs engaging with VEEV according to the latest report?

HCPs are increasingly open to in-person and video engagements, although many remain selective, often interacting with only three or fewer companies.

Which specialties have stricter HCP access according to VEEV's findings?

Specialties such as internal medicine, oncology, psychiatry, and urology show stricter access limitations, with nearly 30% engaging with only one company.