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Veeva Systems' CRM Product Is Seeing Ten Times More Usage During Coronavirus Pandemic

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Veeva Systems' CRM Product Is Seeing Ten Times More Usage During Coronavirus Pandemic

The customer relationship management (CRM) product developed by Veeva Systems (NYSE: VEEV) is seeing ten times more usage during the novel coronavirus (COVID-19) outbreak, the company's CEO Peter Gassner told CNBC.

What Happened

The cloud computing company provides remote communications services for the life sciences industry and is playing a role in enabling the players to develop testing, treatment, and vaccinations for COVID-19, Gassner said in an interview with CNBC Mad Money host Jim Cramer.

The CRM product Veeva Engage has been made available free of cost for new clients, Gassner said.

"We're offering that free to the whole industry until September. So we have more than 100,000 licenses provisioned, and the usage of that product is up [10 times] in just two weeks," he added.

"The energy of the life sciences industry, there's never been a better time."

Why It Matters

Some of Veeva's clients Biogen Inc. (NASDAQ: BIIB), Eli Lilly and Co. (NYSE: LLY), and Gilead Sciences Inc. (NASDAQ: GILD) have been in the race to develop coronavirus treatment, as noted by CNBC.

The reliance on remote communication services has increased due to the widespread lockdowns imposed by authorities across the United States to curb the spread of the virus.

Zoom Video Communications Inc. (NASDAQ: ZM), which provides the tools for Veeva Engage, has seen a record rise in customers during the pandemic as well, alongside others like Slack Technologies Inc. (NYSE: WORK) and Microsoft Corporation (NASDAQ: MSFT) teams.

Price Action

Veeva's shares closed 9..52% higher at $147.09 on Thursday and added another 0.6% in the after-hours session at $148. The stock is up 4.39% year-till-date and 480% compared to five years ago.

 

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