LONDON, May 3 (APM) - Two of the world’s leading organisations that provide information and support to the pharma industry IMS Health and Quintiles, announced on Tuesday they will merge to create a company with a combined market capitalisation of around $17.6 billion.
The deal brings together IMS Health, a leading provider of healthcare intelligence, and Quintiles, one of the world’s biggest contract research organisations, under one company to be known as Quintiles IMS, said a joint statement.
Under the terms of the agreement, IMS Health shareholders will receive 0.384 shares of Quintiles common stock for each share of IMS Health common stock.
Following completion of the merger, which is expected to close in the second half of 2016, IMS Health shareholders will own 51.4% of the stock of the combined company and Quintiles shareholders will own 48.6%.
Based on 2015 data, reported annual revenue for the combined firm Quintiles IMS was $7.2 billion.
The companies said the growing importance of real-world evidence for pharma companies was one of the main strategic reasons for the deal, as the combined company would be able to create a portfolio of anonymous patient records, data collection and research experts.
They added that they can improve clinical trial design, recruitment and execution by combining IMS Health’s data-collecting skills and Quintiles’ abilities in product development.
Financial reasons for the deal include adding an anticipated 100 to 200 basis points to the combined annual growth rate after three years of operations, while annual run-rate cost savings of $100 million are also expected by this time.
Ari Bousbib, chief executive of IMS Health, said: “This powerful combination brings together leading technology and analytics with deep scientific expertise delivered on a global scale by our 50,000 immensely talented professionals in more than 100 markets. Our combined business will accelerate growth, yield greater operating efficiencies and provide more flexibility for future expansion.”
Quintiles’ chief executive Tom Pike said: “This combination addresses life-science companies’ most pressing needs: to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world, and drive commercial success.”
Bousbib will become chairman and CEO of Quintiles IMS, while Pike will become vice chairman.
The combined company expects to maintain two headquarters: Danbury, Connecticut, home of IMS Health, and Quintiles’ base in the Research Triangle Park, North Carolina.
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