IMS must sell two busi­ness lines to buy com­peti­tor: FTC

Modern Healthcare - - LATE NEWS -

The Fed­eral Trade Com­mis­sion will re­quire phar­ma­ceu­ti­cal mar­ket re­search firm IMS Health to sell off two busi­ness lines it would ac­quire in a deal to buy a com­peti­tor in the health­care an­a­lyt­ics field, SDI Health. IMS Health—which is owned by Fort Worth, Texas-based pri­va­tee­quity firm TPG through hold­ing com­pany Health­care Tech­nol­ogy Hold­ings— an­nounced this year it would buy SDI Health for an undis­closed sum. Both firms sell pro­pri­etary an­a­lyt­ics on trends in health­care. The FTC filed an ad­min­is­tra­tive an­titrust chal­lenge si­mul­ta­ne­ously with a pro­posed set­tle­ment, which calls for IMS to sell off SDI’S busi­ness unit han­dling pro­mo­tional au­dits that help drug com­pa­nies es­ti­mate how much to spend on ad­ver­tis­ing, as well as SDI’S med­i­cal au­dit unit, which tracks the di­ag­nos­ing and pre­scrib­ing ac­tiv­ity of physi­cians. The FTC says in the com­plaint that the com­bined firm would have al­most no com­pe­ti­tion in those two ar­eas and thus gain the power to raise prices uni­lat­er­ally. IMS agreed to the terms, ac­cord­ing to an FTC news re­lease. Com­pany of­fi­cials could not be reached for com­ment. IMS will have three months from the date of the ac­qui­si­tion to sell the two SDI busi­ness units to a buyer ap­proved by the com­mis­sion. SDI an­nu­ally pro­vides Modern Health­care with the data for an an­nual re­port rank­ing the in­dus­try’s top 100 in­te­grated health net­works.

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