IMS Health IPO Raises $1.3B in Second Largest Offering This Year

Source: Thinkstock

Source: Thinkstock

Healthcare tech companies have been big news these days; in March, Castlight Health Inc. (NYSE:CSLT) saw its shares more than double in its first day trading after the company’s IPO. Now, IMS Health Holdings Inc. (NYSE:IMS), a 60-year-old company which makes its money selling data on prescription drug use to both drugmakers and analysts, continued the trend; the company’s shares rose 11 percent in its trading debut, and IMS and its investors managed to raise $1.3 billion after selling the stock for $20 a share, Bloomberg reports. But an earlier report from Bloomberg suggests that despite IMS’s success, analysts are skeptical about whether or not the company will succeed in “shaking up” the healthcare industry. “There’s definitely recognition that change has to happen in healthcare, so the market is rewarding innovative, disruptive models,” said Gene Mannheimer, a healthcare industry analyst based in Los Angeles, said Thursday. “I would caution that IMS is not one of their health-care disrupters.” And while it’s true that IMS didn’t see the same amount of hype that Castlight, a company which makes software to help companies track and analyze the cost of providing employees health insurance, did last month, the company is still the second-biggest IPO so far this year, coming in just after the subprime auto-lender Santander Consumer USA Holdings Inc., which raised $2.1 billion in its IPO in January. Danbury, Connecticut-based IMS collects data regarding how drugs are marketed and prescribed; the company sells its data along with a variety of analytical tools and services to clients that include drugmakers, analysts, pharmacies, and government agencies, Bloomberg reports. The company says it competes with management consultancy firms like Accenture Plc, as well as software developers like India-based Infosys Ltd. IMS’s IPO comes after four years of private-ownership by a group of private equity funds; in that time the company spent about $900 million acquisitions and re-organized its cadre of employees to become more client-facing, Bloomberg adds. More From Wall St. Cheat Sheet: