Cognizant Spin-off Builds Core IMS Business by Acquiring China's Leading
Pharmaceutical Market Research Company
WESTPORT, Conn., April 21 /PRNewswire/ -- IMS HEALTH, a spin-off of
Cognizant Corporation (NYSE: CZT), today announced that it has acquired
ChinaMetrik, a privately held company with extensive expertise and
capabilities in measuring the pharmaceutical market in China. Financial terms
of the agreement were not disclosed. IMS HEALTH is the premier global
provider of information solutions to the pharmaceutical and healthcare
industries, with more than $1 billion in 1997 revenue.
"This acquisition reflects our strategy to continue building IMS HEALTH's
worldwide healthcare market coverage," said Victoria R. Fash, President and
COO, IMS HEALTH. "The Chinese pharmaceutical market is projected to be the
world's largest within 20 years, and in-depth information about the health
economy is of tremendous importance to both our multi-national pharmaceutical
company and Chinese pharmaceutical company customers. While the transaction
cost is nominal financially, we believe it will prove strategically
significant long-term."
ChinaMetrik began reporting data on the Chinese pharmaceutical market in
1985, and today publishes information covering the entire country. Its key
data sources include some 60 hospitals located in all major cities, and an
agreement for exclusive access to distribution information from more than
20 major distributors. In addition, ChinaMetrik has installed computers and
proprietary software in all cooperating hospital pharmacies and distributors.
Under the direction of Country Manager Simon Luo, the company publishes a
China Drug Purchase Audit and a China Distributor Sales Audit.
ChinaMetrik also conducts specialized and custom studies on Chinese health
economics.
"The growth potential for pharmaceutical and healthcare products in China
is tremendous," said Curtis Cutter, ChinaMetrik president and chief executive
officer. "Merging our operations into IMS HEALTH means that we will be much
better positioned to provide high-quality information and insight about the
fast-changing Chinese pharmaceutical market to global customers."
The acquisition of ChinaMetrik positions IMS HEALTH as the most
authoritative source of information about the Chinese health market. It
provides enhanced access to pharmaceutical distribution and hospital usage
data in China which, in turn, enables IMS to provide customers with a more
complete and accurate view of the market as it evolves.
IMS HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries. Pharmaceutical sales, prescription
and market data and analysis are offered, along with decision-support systems
that facilitate the advancement of world health. IMS HEALTH operates in more
than 90 countries, and its businesses include: IMS, the leading global
provider of sales management and market research information to pharmaceutical
companies; Erisco, a provider of software-based administrative and analytical
solutions to the healthcare industry; Cognizant Technology Solutions, an
outsourcer of software applications and development services; and Enterprises,
the company's venture capital unit, focused on investments in emerging
healthcare businesses. IMS HEALTH is also the largest shareholder of
GartnerGroup (Nasdaq: GART), the premier provider of research and advisory
services to the information technology industry.
IMS HEALTH is currently a unit of Cognizant Corporation (NYSE: CZT).
On Jan. 15, 1998, Cognizant announced plans to become two independent public
companies by mid-1998: IMS HEALTH and Nielsen Media Research. Additional
information is available at Cognizant's web site:
http://www.cognizantcorp.com.
This press release includes statements which may constitute forward-
looking statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although Cognizant believes the
expectations contained in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove correct. This
information may involve risks and uncertainties that could cause actual
results of Cognizant, IMS HEALTH or ChinaMetrik to differ materially from the
forward-looking statements. Factors which could cause or contribute to such
differences include, but are not limited to (i) the risks associated with
operating on a global basis, including fluctuations in the value of foreign
currencies relative to the U.S. dollar, and the ability to successfully hedge
such risks, (ii) the ability to develop new or advanced technologies and
systems for their businesses on a cost-effective basis, (iii) the ability to
successfully achieve estimated effective tax rates and corporate overhead
levels, (iv) regulatory and legislative initiatives, particularly in the area
of medical privacy, (v) deterioration in economic conditions, particularly in
the pharmaceutical, healthcare, information technology or other industries in
which their customers operate, (vi) conditions in the securities markets which
may affect the value or liquidity of portfolio investments, and (vii) other
factors detailed in Cognizant's SEC filings.
SOURCE Cognizant Corporation
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CONTACT:
Joseph C. Allen of Cognizant, 203-222-4235
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