Feds approve IMS's purchase of SDI Health

Share this article:

IMS Health's acquisition of SDI Health was officially consummated, and its parent company is moving forward to divest two SDI product lines, as per a settlement order proposed by federal regulators to preserve competition.

The Federal Trade Commission (FTC) put forth the settlement and must approve any buyer. As IMS parent Healthcare Technology Holdings moves forward with its acquisition of SDI through IMS, it must sell the two businesses to a buyer within three months of the completion of the deal, or the FTC may appoint a trustee to sell the assets (the holding company can also ask for an extension).

One of those two product lines, SDI's medical audit business, is part of a two-player market, with IMS controlling 53% and SDI holding a 47% stake. The other product line, the promotional audits business, is also dominated by the two firms—SDI has 68% of the market, and IMS holds a 30% share (Cegedim controls 2%).

Terms of the sale, which IMS announced in January, were not disclosed. “We are excited to have successfully completed our purchase of SDI Health,” said IMS spokesman Gary Gatyas, Jr. “Together, the newly combined company is well positioned to support the needs of our clients.”

On the same day it announced the settlement, the FTC filed a complaint alleging “that the proposed acquisition would substantially increase IMS's share in [the two audit markets],” and eliminate its only significant competitor. The settlement is designed to soothe the regulator's concerns.
Share this article:
You must be a registered member of MMM to post a comment.
close

Next Article in Features

Email Newsletters

MM&M EBOOK: PATIENT ACCESS

Patient access to pharmaceuticals is a tale of two worlds—affordability has improved for the majority, while the minority is hampered by cost, distribution and red tape. To provide marketers with a well-rounded perspective, MM&M presents this e-book chock full of key insights. Click here to access it.

More in Features

Read the complete October 2014 Digital Edition

Read the complete October 2014 Digital Edition

Click the above link to access the complete Digital Edition of the October 2014 issue of MM&M, with all text, charts and pictures.

Predicting your pink slip

Predicting your pink slip

Any time a firm needs to save money, high-salaried executives are targets

Private View: New ways to engage with customers

Private View: New ways to engage with customers

These healthcare social media campaigns successfully use emotion, altruism and the human desire to "brand" oneself to get customers engaged.