Good Progress for IMS after Cegedim Buy

Pharma research giant IMS Health has reported second quarter revenue up 5.2% on a like-for-like basis, allowing for currency changes and the acquisition of assets of Cegedim. Reported revenue was up 12.0% to $742m, equivalent to a 24.6% rise at constant currency.

First announced more than a year ago, the acquisition of Cegedim's CRM and Strategic Data businesses was completed early in the current quarter, which ended 30th June. Technology services revenue saw very strong growth - equivalent to 45.6% on a constant currency basis or 11.7% with Cegedim excluded; while Information offerings revenue rose 9.4% at constant currency but were flat (+0.5%) excluding Cegedim. Both emerging (29.4%) and developed markets (23.5%) saw strong constant currency growth with the Cegedim buy included.

Adjusted EBITDA of $220 million was up 9.5% on a constant currency basis, although margin at 29.7% was down roughly four percentage points during the quarter, with the addition of lower margin Cegedim business.

Diluted EPS of $0.14 compared very favourably with a $0.67 loss per share in Q2 2014. Adjusted and at constant currency, the measure increased 3.6%.

Chairman and CEO Ari Bousbib (pictured) said the firm was very pleased with results: 'Second-quarter revenue growth remained solid, driven by continued strong double-digit growth for core IMS technology services offerings. Important contract wins in technology services during the quarter position us well for continued revenue and profitability growth, as does the good progress we are making in executing the integration of the Cegedim Acquisition'.

Revenue for the six months ended June 30th was $1,374m, up 15.9% on a constant currency basis and 5.1 percent reported, while adjusted EBITDA was $436m, up 9.7% at constant currency.

A bond issue and a debt-financed share repurchase relating to the Cegedim buy meant the firm's cash position worsened slightly - as of June 30th net debt was up to $3,866m.

IMS has around 15,000 employees and is online at www.imshealth.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• IMS Health Inc
• All news