Danbury-based Quintiles IMS Holdings Inc., an international provider of information, technology services and contract research to the health care and life sciences industries, reported fourth quarter 2016 revenue of nearly $1.96 billion – a 74.2 percent increase over the fourth quarter of 2015 on a constant currency basis.
The results were driven largely by the Oct. 3 completion of the merger of Quintiles Transnational Holdings Inc. and IMS Health Holdings Inc. Under purchase accounting rules, a portion of IMS Health’s deferred revenue, which would have otherwise been realized as revenue in future periods, must be eliminated. Excluding that deferred revenue adjustment, and on a combined company basis, revenue for the fourth quarter increased 4.2 percent on a constant currency basis.
Commercial solutions revenue at the Danbury company increased 927.4 percent in the fourth quarter on a constant currency basis; excluding the $55 million deferred revenue adjustment, the legacy IMS commercial business had revenues of $860 million and grew 6.9 percent on a constant currency rate. The legacy Quintiles commercial business had revenues of $74 million and declined 14 percent at a constant currency rate. Combined company commercial solutions revenue of $934 million grew 4.9 percent in the fourth quarter at a constant currency rate.
Fourth-quarter 2016 net loss was $178 million and loss per share was 74 cents, due primarily due to a one-time deferred tax charge relating to certain changes in Quintiles IMS’ assertion regarding reinvestment of foreign earnings. Adjusted net income was $266 million and adjusted diluted earnings per share was $1.09 in the fourth quarter.
“For our first quarter as a combined company, we delivered a strong operational performance and achieved financial results in line with or above our targets,” said Ari Bousbib, chairman and CEO, QuintilesIMS. “The post-merger integration process is advancing well and we are pleased with our progress to date.”
The firm’s fiscal year, which ended Dec. 31, saw revenue increase 24.2 percent to nearly $5.4 billion on a constant currency basis. On a full-year combined company basis, and excluding the deferred revenue adjustment, revenue of $7.78 billion was a 7.8 percent increase on a constant currency basis.