IMS acquires MIHS Holdings for USD 80m

US-headquartered pharmaceutical and healthcare research company IMS Health has acquired US-based analytics and technology firm MIHS Holdings, which has the HIS and MedInitiatives subsidiaries, for a total of USD 80m.

The deal gives IMS access to proprietary MedInitiatives software to improve services to drug companies it already serves and develop new business with health plans and other health care payers. The purchase could boost the local company's presence worldwide.

The purchase agreement specifies a base price of USD 68m, with up to an additional USD 12m to be paid should the company meets performance targets for this year, according to documents filed with the Securities and Exchange Commission (SEC).

The USD 80m acquisition price is four times the projected annual revenue for MedInitiatives in 2007, which is generally an indication of growth potential.

In the US healthcare payer market, IMS assesses doctor dynamics and drug therapies. With the addition of MedInitiatives, the company says clients including pharmacy benefit managers will get additional insights and innovative technology to better manage prescription drug costs.

Bill Nelligan, president of IMS Americas, said: ìThe acquisition represents a significant growth opportunity for us, as drug manufacturers seek greater efficiencies from their non-core operations and payers look for new ways to manage escalating costs and drive evidence-based healthcare decisions.î