Is This Data Collector a Sure Bet?
IMS Health Inc (RX) has got the niche on pharmaceutical data collection, and its place in the ever-growing need for medical data collection has solidified it as an attractive investment prospect. The company gathers data on prescription sales transactions in 100 countries and has no direct competition. IMS Health provides real-time sales numbers used by pharmaceutical companies, government regulators, and reporters.
According to BusinessWeek, revenues for IMS Health grew 12% to $1.96 billion and earnings rose 11% to $315.5 million in 2006. IMS Health continues to grow despite some efforts by state governments to restrict the company's ability to collect data on specific prescription use of certain physicians. New Hampshire recently lost its lawsuit against IMS, making it more difficult for other states to win in similar battles. Analysts say that IMS Health's increasing global market and the increasing need for medical data collection make it a solid investment choice.