Tucker Remmers

Tucker Remmers asked about the development of AI agents in the clinical suite, specific examples of their application, and how Veeva plans to monetize this innovation in the future.

Answer

Paul Shawah (EVP Strategy) outlined Veeva's accelerated roadmap for AI agents, expecting them in virtually all software applications by the end of 2026, starting with commercial, then safety/quality, and later clinical operations and data management. He cited streamlining core processes like eTMF document intake as an example of productivity gains.

Tucker Remmers inquired about the development of AI agents in Veeva's clinical suite, including the timeline for development, specific examples, and how Veeva plans to monetize these agents.

Answer

Paul Shawah (EVP Strategy) outlined Veeva's roadmap to have AI agents in virtually all software applications by the end of 2026, starting this year in commercial and expanding to safety, quality, clinical operations, and clinical data management next year. He highlighted clinical as the largest single opportunity for streamlining core processes like ETMF document intake, replacing human labor, and driving productivity, noting an accelerated agent roadmap.

Tucker Remmers asked for a breakdown of the 2% Annex 1 contribution this year, specifically how it splits between projects in development/validation versus those already in commercial production.

Answer

CEO Eric Green stated that less than 40% of the open Annex 1 projects have converted to commercial revenues since the initiative began, indicating a significant portion remains in development or validation phases, with project timelines varying from three to eight quarters.

Tucker Remmers from Jefferies asked for a breakdown of the 2% contribution from Annex 1 projects this year, specifically how it splits between projects in development/validation phase versus those already in commercial production.

Answer

CEO Eric Green indicated that less than 40% of the total open Annex 1 projects have been converted to commercial revenues since the initiative began. He explained that the timing of conversion varies by client, with some projects taking three to four quarters and others six to eight quarters, depending on scale and customer speed.

Tucker Remmers from Jefferies inquired about the hurdles to automating the SmartDose device assembly and the potential margin improvement from the new line expected in 2026.

Answer

CEO Eric Green stated that the company is on track with its plan, which involves both driving near-term cost improvements and commercializing a new automated line in late 2025 or early 2026. While he declined to comment on specific product-level margins, he assured that the team is focused on enhancing the economics of SmartDose and evaluating all strategic options.

Tucker Remmers of Jefferies asked for the rationale behind the second-half revenue guidance, which implies a step-down from Q2, and the role of pass-throughs. He also inquired about the large pharma environment and Fortrea's win rates with those clients.

Answer

CFO Jill McConnell explained that the anticipated revenue moderation is partly due to the successful early conclusion of a large, pass-through-heavy study. She noted that while H2 revenue would be more aligned with Q1 levels, margins are expected to be better due to ongoing cost savings. She also confirmed that relationships and win rates with existing large pharma customers remain strong and consistent.