Salesforce is determined to develop and innovate with its Life Sciences Cloud for Pharma. In the pharma market, among others, two significant players are leading the way in delivering engaging customer experiences: Veeva and IQVIA.
The relationship between them has been marked by intense legal disputes, including a notable lawsuit where IQVIA accused Veeva of stealing proprietary data and engaging in fraud. A U.S. District Court found substantial evidence supporting these claims, leading to sanctions against Veeva for destroying evidence. This backdrop of litigation raises questions about the competitive dynamics in the life sciences, especially after Salesforce recruited Frank Defesche, former General Manager of Veeva’s Vault, in November 2023. His recruitment could shift the competitive landscape as Salesforce seeks to strengthen its foothold in life sciences.
Development of Life Sciences Cloud and the Global Partnership between IQVIA and Salesforce
What do Veeva Systems and Salesforce have in common? Since 2017, they have worked together to provide a customer relationship management (CRM) solution specifically for the life sciences industry. However, this partnership is coming to an end as Veeva plans to develop its own CRM system (Vault CRM).
This creates the opportunity for an entirely new collaboration in the CRM market.
What do IQVIA and Salesforce have in common?
Both companies announced in 2024 that they are teaming up for an expanded partnership. They are to develop the Life Sciences Cloud for customers, a platform designed for better customer engagement, which is expected to launch in 2025.
Let’s take a closer look at both companies, focusing on the similarities and differences between their operations, performance and CRM capabilities.
Life Sciences Companies: Market Shares, Customer Groups and Functionalities
Veeva Systems commands a significant presence in the life sciences sector, with 58% of its revenue generated from North America, 27% from Europe, and the remainder from Asia, MENA, and Latin America. With over 1,388 customers, including more than 50 of the largest global pharmaceutical companies, the company boasts a market capitalization of $33.11 billion.
Veeva primarily serves the life sciences sector, including pharmaceuticals, biotechnology, and medical devices, while also marketing CRM solutions to non-life science companies such as consumer packaging and chemicals. Their customer base includes both CRM and R&D clients.
IQVIA serves nearly 400 customers across over 100 countries and has a market capitalization of $41.33 billion.
IQVIA targets biotech, medical device, and pharmaceutical companies, as well as medical researchers, government agencies, payers, and other healthcare stakeholders. The company excels in regulatory compliance solutions, tailored to the pharma market.
Veeva offers a comprehensive suite of functionalities tailored for the life sciences operations. Its solutions include Account and Contact Management, Call Planning, Sample Management, and Closed-Loop Marketing (CLM). Additionally, the platform provides robust Quality Management features such as Regulatory Information Management (RIM), Clinical Data Management, and Content Management.
On the other hand, IQVIA’s Orchestrated Customer Engagement (OCE) platform includes digital detailing, regulated document management, validated sampling management, marketing integration, and order management. By integrating Salesforce capabilities like Sales Cloud and Marketing Cloud, IQVIA ensures that companies can retain most of the features they currently use from Veeva while benefiting from enhanced functionalities in the Life Sciences Cloud.
Comparing CRM Solutions
Veeva and IQVIA offer CRM solutions tailored for the life sciences domain, sharing key functionalities aimed at enhancing customer experiences. Both platforms feature Closed Loop Marketing (CLM) tools that enable pharmaceutical representatives to engage healthcare professionals (HCPs) effectively with visual content. These tools allow users to track interactions and gain insights into audience preferences, adapting based on collected data.
However, there are notable differences between the two. Cost is a significant factor; Veeva tends to be more expensive, particularly for larger companies, while IQVIA provides a more affordable option for small and mid-sized businesses. Additionally, it offers self-paced online training, whereas IQVIA focuses on personalized, instructor-led sessions. .
As Veeva moves forward with its own platform, it will focus on reducing reliance on Salesforce and enhancing its offerings for the life sciences industry. Meanwhile, Salesforce is strengthening its position by partnering with IQVIA to create a comprehensive solution that addresses the needs of modern healthcare engagement.
AI Capabilities: IQVIA and Salesforce accelerate the development of Life Sciences Cloud
Veeva is actively leveraging artificial intelligence to enhance its offerings. Their AI application, Veeva Andi, learns from user interactions, suggesting next best actions and simulating outcomes to optimize decision-making.
IQVIA OCE is going to use Salesforce’s capabilities to quickly build new features for the pharmaceutical industry. The solution includes rep-centered deep dive data analysis, an AI copilot for sales representatives, and generative AI for knowledge search and creation.
Salesforce Life Sciences Cloud for Customer Engagement: The Future of Veeva, IQVIA, and Salesforce
The pharmaceutical market is poised for significant transformation, influenced by the competitive dynamics among all three parties. Veeva leverages its deep industry expertise and robust compliance features to provide integrated solutions tailored to the life sciences industry. However, its limited flexibility for non-industry-specific customizations may hinder broader adoption.
In contrast, Salesforce offers a versatile and highly customizable platform with extensive third-party integrations through AppExchange. Its strong analytics and AI capabilities enable pharmaceutical companies to optimize customer engagement and streamline operations. The collaboration with IQVIA will strengthen Salesforce’s position in the pharmaceutical market. The recent launch of Salesforce’s Life Sciences Cloud exemplifies its commitment to enhancing patient and healthcare professional interactions through data-driven insights.
As these companies continue to innovate. The integration of AI and advanced analytics will play a crucial role in shaping the future of the pharmaceutical market, driving efficiency, compliance, and ultimately better patient outcomes.
