WESTPORT, Conn., July 22 /PRNewswire/ -- IMS HEALTH (NYSE: RX) and
Pharmaceutical Marketing Services Inc. (PMSI) (Nasdaq: PMRX) today jointly
announced the signing of an agreement in principle for IMS HEALTH to acquire
the non-U.S. assets of PMSI. The agreement restructures a previously
announced agreement to acquire PMSI. IMS HEALTH is the world's leading
provider of information solutions to the pharmaceutical and healthcare
industries.
"Our strategic goal is accelerating the launch of IMS HEALTH European
prescription-based products," said Robert E. Weissman, Chairman and CEO of IMS
HEALTH. "This transaction will enable us to deliver new, value-add products
to our customers, and to enhance our growth."
The agreement in principle contemplates that PMSI will receive
consideration of $75 million, or approximately 1.2 million shares of IMS
HEALTH common stock at current prices. PMSI will remain an independent public
company retaining PMSI Scott-Levin, its U.S. subsidiary that provides market
research and managed care audits, and PMSI will also retain all of its
non-operating assets.
The transaction has been authorized by the IMS HEALTH and PMSI boards of
directors. The acquisition will be accounted for under purchase accounting,
is expected to be tax-free to PMSI, and is expected to close in the third
quarter of 1998.
PMSI had ongoing information services revenue of $62 million for its
fiscal year ended June 30, 1997, and employs approximately 500 professionals
in nine countries. PMSI was established in 1991 and provides a range of
information services to pharmaceutical and healthcare companies in the U.S.,
Europe and Japan. PMSI's Source Europe division delivers prescription
database services in five European countries. PMSI is the international
leader in physician profiling database services, with its ScripTrac(TM)
service offered in Europe and Japan.
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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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 115785
CONTACT:
Michael Gury of IMS HEALTH, 203-222-4230; or
Warren Hauser of PMSI, 212-841-0610
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