With spending on prescription drugs soaring and the number of clinical trials skyrocketing, it's little wonder why healthcare companies are embracing Veeva Systems (NYSE:VEEV) software-as-a-service platform.

In this clip from The Motley Fool's Industry Focus: Healthcare, analyst Kristine Harjes and contributor Todd Campbell explain why more and more companies are turning to Veeva Systems to manage their information and how that's translating into medal-winning sales growth for investors.

A full transcript follows the video.

This video was recorded on Feb. 14, 2018.

Kristine Harjes: And we're back to the Olympics of healthcare with our next competition, health tech. A very broad category, but my gold medal goes to a company called Veeva Systems. They're the dominant SaaS company in the life sciences space, and their value proposition is consolidating legacy IT systems into a single cloud-based system with add-on applications like event management and marketing territory alignment. It's specifically designed for healthcare companies and meeting industry-specific challenges like clinical trial management, regulatory requirements, data collection and more. Their legacy CRM platform is being used by a seriously impressive list of some of the most important and biggest drug makers out there, and their next phase of growth will come from their Veeva Vault, which is a line of products and data management, as well as expansion to beyond just life sciences, which is something that's pretty exciting and was made at the request of companies in other areas who had heard such great things about Veeva that they wanted to be able to use their offerings, even though they're not healthcare companies. From an investing standpoint, I love the predictability of a subscription business. And I also love that it's super sticky. Once you're in their product suite, it's really tough to get out of it and go to a competitor, even if you wanted to. That gives it a super wide moat.

Todd Campbell: That's a really interesting stock. I think it's awesome that you picked it as a gold medalist. I went back and I started looking at this stock, and it's like, wow, no wonder they've had so much revenue growth and so much are earnings growth. Kristine, since 2010, we've gone from 100,000 trials registered on the clinicaltrials.gov website to 266,000 trials.

Harjes: Dang.

Campbell: Just since 2010. So, there's no wonder that that new Veeva Vault that's helping companies manage their clinical trials is enjoying some pretty rapid growth, I think 50% annualized year-over-year just for that piece of the business. So, even if you have some slowdown in that legacy customer relationship management software business, this Veeva Vault is opening up all sorts of new opportunities for them. It's an exciting time for the company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.