Projects Increase In EPS Growth Rate to 21-24 Percent
NEW YORK, July 9 /PRNewswire/ -- IMS HEALTH (NYSE: RX), the world's
leading provider of information solutions to the pharmaceutical and healthcare
industries, today presented its business strategy and financial goals at its
first analyst meeting as an independent company. IMS HEALTH was spun off on
July 1 from Cognizant Corporation, itself a 1996 spinoff from Dun & Bradstreet
Corp.
Reflecting the strength of IMS HEALTH's business and the positive outlook
for the global pharmaceutical and healthcare markets, the company increased
its projections for revenue growth to 13-15 percent constant dollar, net
income growth to 19-22 percent and earnings per share growth to 21-24 percent
for the second half of 1998 and the full year 1999.
IMS HEALTH is one of five companies created from Dun & Bradstreet Corp.
Since the original split in November 1996, significant shareholder value has
been created. Today, the five companies have a combined market value of
approximately $19 billion, up from $10 billion in November 1996.
"As the largest information partner to the pharmaceutical industry for
over 40 years, IMS HEALTH is integral to both their strategic and day-to-day
decision-making. Our business is built on a solid foundation of core
competencies, including an unmatched ability to create and manage massive
databases to build world-class analytical tools," Robert E. Weissman, chairman
and chief executive officer, told analysts in New York.
IMS HEALTH has five major business units serving the healthcare industry:
market research to measure worldwide product volumes, trends and market share;
sales management services, which enable client companies to measure the impact
of their sales force activity; technology-enabled selling involving sales
automation; over-the-counter tracking services of non-prescription
pharmaceutical products; and software-based services for the managed care
industry.
Underlying the sound financial outlook for IMS HEALTH, Weissman said, are
positive developments in the global pharmaceutical and healthcare industries.
He noted the growing number of products being brought to market by the
pharmaceutical industry, an increase in sales due to changing demographics,
the recognition of the cost-saving benefits of drug treatment, and the growing
importance of over-the-counter products and pharmaceutical marketing efforts
to consumers.
"Based on the billions of dollars invested in R&D by pharmaceutical
companies, several factors make this the 'golden age' for new drug
development," Weissman said in pointing to the sheer volume of new compounds
in trial phases, as well as the quality of the pipeline -- "breakthrough"
drugs in critical research areas as opposed to "copy cat" drugs -- and
explosive consumer demand for "lifestyle" drugs such as Viagra.
As a result, IMS HEALTH projects sustained growth for the pharmaceutical
industry well into the next century, which translates into excellent growth
opportunities for IMS HEALTH, said Victoria R. Fash, President and Chief
Operating Officer.
In discussing financial goals for the company, Ms. Fash said its operating
strengths contribute to strong performance. "IMS HEALTH's strong cash flows
from operations allow investment in new products to sustain core business
growth," she said.
Ms. Fash told analysts that the company's capital allocation priorities
include a major stock repurchase planned in the second half of 1998.
"This is a 'stick to your knitting' strategy which has historically
generated growth-company results," Ms. Fash said. "The business has delivered
40 years of earnings, driven in part by renewable revenues based on multi-year
or annually renewable 'evergreen' contracts with pharmaceutical companies that
recognize the value of our services as 'mission-critical.' It's not
information that is just nice to have -- it is information that is key to the
success of their business."
IMS HEALTH
IMS HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries. With more than $1 billion in 1997
revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest
pharmaceutical manufacturer information partner, with over 40 years'
experience in the industry. Key products and services integral to customer
day-to-day operations include: market research for prescription and over-the-
counter pharmaceutical products; sales management information to optimize
sales force productivity; technology enabled selling solutions for sales and
marketing decision-making; and technology systems and information services
that support managed care organizations. Additional information is available
at http://www.imshealth.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 IMS HEALTH 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 IMS HEALTH 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 extent in which IMS HEALTH seeks growth through acquisitions, and the
ability to identify and consummate acquisitions on satisfactory terms, (iii)
the ability to develop new or advanced technologies and systems for their
businesses on a cost-effective basis, (iv) regulatory and legislative
initiatives, particularly in the area of medical privacy, and
(v) deterioration in economic conditions, particularly in the pharmaceutical,
healthcare, information technology or other industries in which IMS HEALTH's
customers operate.
SOURCE IMS HEALTH
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Related links:
http://www.imshealth.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 115785
CONTACT:
Michael Gury of IMS HEALTH, 203-222-4230
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