Since losing its legal battle on prescription information and physician secrecy, IMS Health has struggled. CEO David R. Carlucci has long-maintained that the financial fortunes of the company were de-coupled from the fate of the pharmaceutical industry, but that now appears to be nothing more than wishful thinking. IMS is in crisis.
The company took a 3Q loss due to a restructuring announced in July. The company lost $9.3 million in the quarter and saw revenues fall 6%.
More interesting was the announcement the company is evaluating “strategic options.” Wall Street has punished the company. Despite having repurchased millions of shares to prop up the stock price, the stock has been nearly stagnant over the last seven years. It was time for the Board of Directors to intervene.
Since the buyout was announced, the stock has jumped 20%.
