IMS Health Clears EC Takeover Hurdle

Pharmaceutical research giant IMS Health has received clearance from the European Commission (EC) to proceed with its sale to US investment firms TPG Capital and Canada Pension Plan Investment Board (CPPIB) for $5.2bn.

News broke of the takeover last November, after IMS Health reported a 6% drop in third-quarter revenue to $540.8m, compared with $573.7m the previous year.

The proposed deal would result in a 'vertical relationship' between the supply of health-related market research services by IMS Health, and the development and marketing of finished pharmaceuticals by Axcan Pharma, a Canadian pharmaceutical producer controlled by TPG.

However, after examining the contract, the EC concluded that the transaction would not 'significantly' impede effective competition in the European Economic Area, or any substantial part of it.

Completion of the agreement is now subject to approval of IMS shareholders and is expected to occur by the end of March.

If the deal does go ahead, shareholders will receive $22.00 cash for each share of IMS common stock they own, which represents a 50% increase on the closing share price on Friday October 16 2009 - the last trading day prior to speculation that IMS was considering the sale.

Chairman and CEO David Carlucci says the sell-off will enable IMS Health shareholders to realize substantial value from their investment in the firm, while at the same time, strengthening the business's position to capture long-term growth opportunities.

Web site: www.imshealth.com .