THE BUSINESSWEEK 50 RANKINGS + 25

25

IMS Health

Data on drugs and health care are the lifeblood of IMS Health. It collects information on everything from the number of prescriptions written for individual drugs to the medical histories of patients. By analyzing the data, IMS can help its 3,000 pharmaceutical, biotech, and health-care clients decide which marketing campaigns work best or which drugs to include in portfolios. It also advises pharma companies on how to launch a drug and what price to set, among other things. The need for data is growing as drugmakers lose blockbusters to generic rivals, struggle to produce new medicines, and face insurers and government buyers who want cost-effective drugs. CEO David Carlucci has seen IMS’s revenues rise 12% in 2005 and 2006, and sales look like they’ll keep climbing.

Overall Grade

A

Market Data

RX

Market Value
(2/28/2007)

$5.8 Billion

Profitability*

46.3%

A

Sales Growth Rate**

12.3%

B-

12-Month Sales

$2.0 Billion

12-Month Net Income

$0.3 Billion

Total Return Past 12 Months

20.4%

Past 36 Months

18.0%

Economic SectorHealth Care
IndustryHealth Care Technology
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

David R. Carlucci

David R. Carlucci, 52

CEO since 2005


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Data as of 2/28/07 provided by Standard & Poor's Compustat