IMS to seek Supreme Court review of prescription data ruling

US-- IMS Health chief executive David Carlucci has made clear that the company will not be calling time on its protracted battle to block a state law that prevents the use of physician prescribing information for marketing purposes.

Speaking on a conference call to discuss the healthcare data firm's full-year results, Carlucci said IMS intends to file a request for a judicial review of the First Circuit Court of Appeals decision allowing New Hampshire's so-called ‘prescription restraint law' to stand.

IMS and rival Verispan – its partner in this legal fight – had earlier convinced a lower court to block the law on free speech grounds, but that ruling has now been reversed.

The decision paves the way for the enforcement of the legislation, which wouldn't stop IMS and Verispan from collecting the data, but would prevent them from selling it on to drugs companies, who traditionally use that information to market new medicines to doctors.

A similar law is on hold in Maine, but with the state also in the First Circuit it is expected that the appeals court ruling will apply there too.

Carlucci said IMS had seen further legislative activity in over 10 states since the First Circuit decision. The firm plans to ask the Supreme Court to review the decision by mid-April, he added.

IMS and Verispan are also battling a ‘prescription restraint law' in Vermont, which is in the Second Circuit. They are still waiting to hear whether their legal challenge there has succeeded.

Carlucci was upbeat about the situation. “We believe we will still ultimately prevail in the courts,” he said.

However legislative issues have been factored into the company's prediction of flat to 3% constant-dollar revenue growth in 2009 – which one analyst remarked was the firm's “lowest growth forecast in the last 10 years”.

Carlucci explained that aside from the general economic downturn, the company was expecting to see slower growth as pharmaceutical companies turned their attentions towards transforming their businesses while coming to terms with the loss of patent exclusivity on their drugs. Client mergers were also expected, he said.

“We have positioned IMS to perform well in a slower growth environment and taken the right steps to align for new opportunities, tightly manage our costs, and maintain a solid balance sheet,” Carlucci said.

For 2008, IMS reported revenue of $2.33bn, up 6% (or 3% constant dollar). Click here to read the complete financials.

Author: Brian Tarran

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