1. Healthcare Industry Group Update
Healthcare team

2. Healthcare Holdings Update
Purchase Date
Buy Price
Current Price
% Change
IQVIA (formerly QuintilesIMS): IQV
03/17/2017
$77.82
$104.38
34.1%
Veeva Systems: VEEV
11/08/17
$61.06
$76.10
24.6%

3. Fundamentals – useful to look at multiples for re-evaluation
Holding
P/E
EV/EBITDA
EV/REVENUE
Diluted EPS
IQV
17.76
31.23/1.7B =
18.38x
31.23/8.06B =
3.88x
5.88
LabCorp: LH
23.63
24.16/1.98B =
12.18x
24.16/10.21B =
2.37x
12.21
VEEV
82.74
10/.16507B =
60.9x
10/.68557B =
14.67x
0.92
Salesforce:
CRM
n/a
90.12/.8967B =
100.51x
90.12/10.48B =
8.60x
0.17

4. IQVIA beyond financials
CRO market slowing down after a solid run the past 20yrs
IQVIA might still have some room to keep growing, but the high stock growth period is likely over
Uncertainty over structure of healthcare industry right now
consolidation happening so will be interesting to see what happens with CRO and data analysis companies moving forward
Potential to be acquired by large pharma companies looking for synergies and to consolidate an unsteady industry with pressure to decrease drug prices

5. VEEV beyond financials
Beat analyst estimates and raised forecast for 2018 during Q4 earnings announcement
Stock price jumped about 25% after announcement
Bought in at decent time before this high growth took effect
Not too overvalued compared to Salesforce
Stock has good momentum now, but downside would be that it is overvalued and projections are too high after strong Q4

6. Update conclusions
IQVIA – Hold for another few months and see where we stand towards the end of the semester. If there has been little price movement over the past 6 months, could sell at that time. Major upside includes acquisition attempt, downside is uncertainty in drug pricing market could lead to drop in stock price and IQVIA’s business model
Veeva – Hold for longer. Strong Q4 a few weeks ago caused the 25% jump as revenue was up over 23% for quarter and earnings beat projections. Also raised projections for coming year.