IMS Health Holdings, which sells prescription data and technology services to medical-device manufacturers, providers and payers, reported a rise in its year-end profits and is looking forward to more growth in 2016.
Operating income jumped to $364 million in fiscal 2015 from $208 million in the prior-year. IMS has recovered financially from its April 2014 initial public offering and reported a net income of $417 million last year, compared with a net loss of $189 million in the prior-year period. The loss included one-time IPO-related charges, IMS said. Adjusted net income was up 24.6%, according to the earnings report. Connecticut-based IMS operates globally.
Revenue rose 21% on a constant currency basis and increased 5.8% on a constant currency basis excluding the impact of the acquisition of Cegedim's customer relationship management business. The deal closed in April 2015.
Additionally, IMS projected a bright 2016 outlook. The company expects revenue growth of 10% to 12%, adjusted EBITDA growth of 7.5% to 9.5%, adjusted net income growth of 6.5% to 8.5% and adjusted diluted earnings per share growth of 8.5% to 10.5%.
IMS stock traded at $23.75 per share and was up 3.26%, as of 10:47 a.m. Central time Wednesday.
The skyrocketing use of prescription drugs globally is aiding IMS' success. Projections say 4.5 trillion doses will be used in 2020, with China and India driving the demand. That represents a 24% increase over 2015 prescription drug use, according to the IMS Institute for Healthcare Informatics.