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Fairfield's IMS Health Shows 43 Percent Surge in Net Income for Second Quarter

Posted on: Thursday, 21 July 2005, 03:01 CDT

Jul. 21--Fairfield-based IMS Health said Wednesday that net in-come rose 43 percent in the second quarter as European, American and Asian companies clamored for more information on drugs and the health care industry.

The market research company reported net income of $93.2 million, or 41 cents per diluted share, for the quarter ended June 30, compared to earnings of $65.1 million, or 27 cents per share, for the same period in 2004.

"Our second quarter results were strong around the world, led by the U.S. and Europe," said David Carlucci, IMS chief executive officer and president in a prepared statement. "In fact, our teams delivered double-digit reported revenue gains in all regions -- the Americas, Europe and Asia Pacific." Revenues increased from $379.6 million in the year-ago quarter to $433.3 million for the 2005 quarter.

"We had a great quarter," said Bill Hughes, an IMS spokesman. Hughes said clients in mature and emerging industrial countries are demanding more information on health care. Aging populations in America, Japan and Europe are driving interest in the industry, and U.S. pharmaceutical companies are taking a larger interest in Asia -- especially China and India -- as those countries' economies continue to expand, he said.

An example of an IMS product is the report the company recently released on Medicare Discount Cards that are supposed to help reduce drug prices for seniors. The cards were introduced in June 2004 and expire Dec. 31, 2005.

The report said that the temporary cards, which will be replaced with permanent ones in 2006, have the potential to bring new patients into the market, encouraging them to switch products and increasing competition between pharmaceutical companies. According to IMS, card users saved money on drug purchases 80 percent of the time.

While business is growing for IMS, this is likely the last year that the company reports earnings as an independent company. On July 11, IMS announced that it will merge with VNU N.V. of the Netherlands during the first quarter of 2006. The deal must be approved by shareholders of both companies and gain regulatory approval.

VNU, which already owns television ratings company Nielsen Media Research, will pay IMS shareholders $11.25 per share and grant them 0.60415 shares of VNU for each share of IMS owned.

Shares of IMS closed down 11 cents to $27.04 in Wednesday trading on the New York Stock Exchange.

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RX, VNUVY,

Source: Connecticut Post

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