IMS Health Revenue Drops 6% in Q3

Pharma market research giant IMS Health has reported a 6% drop in third-quarter revenue to $540.8m, compared with $573.7m a year earlier. The news follows reports earlier in the week that the Board of Directors is considering selling the company.

Net loss for Q3 was $9.3m and after adjusting for a $106.3m charge relating to restructuring and other items, net income on a GAAP basis was $72.3m compared with $79.4m in the year-earlier period.

Operating loss in the third quarter, including the restructuring charge, was $5.5m compared with $124.0m in operating income in Q3 2008.

CEO David Carlucci commented: 'We're moving out on our plans to lower our cost structure and accelerate operational efficiencies, and we continue to generate excellent cash flow.'

Revenues for the first nine months of 2009 were down 9% to $1,590.6m, from $1,748.6m for the first nine months of 2008. For the 2009 period, net income was $186.9m, compared with net income of $212.8m for the prior year period.

Earlier in the week, the Wall Street Journal reported that IMS Health is in talks with several private equity firms regarding selling the company. In response, the firm said it had formed a committee to explore a 'variety of strategic alternatives', but said that this may not result in a transaction.

Web site: www.imshealth.com .