IMS Health sees 8% decline in first-quarter revenue
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US-- Healthcare data firm IMS Health has reported an 8% drop in first-quarter revenues to $526.9m and a 13% decline in operating income to $100.9m.
The company pegged the bulk of the revenue drop on the strengthening US dollar as more than 60% of its sales come from outside its home market. At constant dollar rates, revenue was down 3% and operating income was down 20%.
IMS had already warned 2009 would be marked by lower rates of growth than in previous years because of the general economic downturn and other factors affecting the pharmaceutical industry specifically, such as the loss of patent exclusivity on drugs and expected client mergers.
But CEO David Carlucci told investors: “IMS continues to generate strong cash flow and earnings-per-share growth, even as increasingly difficult economic conditions worldwide impact the healthcare industry and our customers.
“While there was a softening in demand for consulting engagements in some major markets, we maintained solid growth in our services offerings.”
Author: Brian Tarran
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