Quintiles IMS Holdings, Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Commercial Solutions, Research & Development Solutions, and Integrated Engagement Services. The Commercial Solutions segment offers country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order to life science companies, and investment and financial sectors that deal with life science companies; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level to pharmaceutical sales organizations. This segment also provides OneKey, a reference database of healthcare professionals; real-world insights, and various cloud-based applications and related implementation services; and strategic and implementation consulting services, including advanced analytics and commercial processes outsourcing services. The Research & Development Solutions segment offers biopharmaceutical development services comprising project management and clinical monitoring, clinical trial support, and strategic planning and design services, as well as clinical trial, genomic, and bioanalytical laboratory services. The Integrated Engagement Services segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. Quintiles IMS Holdings, Inc. serves pharmaceutical, biotechnology, medical device, and healthcare companies. The company was formerly known as Quintiles Transnational Holdings Inc. and changed its name to Quintiles IMS Holdings, Inc. as a result of its merger with IMS Health Holdings, Inc. in October 2016. The company was founded in 1982 and is headquartered in Durham, North Carolina.
Business Analysis of QuintilesIMS
The Healthcare Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how QuintilesIMS compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by QuintilesIMS to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of QuintilesIMS with an interactive chart.
- Revenue Growth: QuintilesIMS reported a revenue growth of 19.9% year-on-year during 2016. Healthcare Research Services Industry grew at 14.8% in the same period
- COGS share of Revenues: As a percentage of revenue, QuintilesIMS spent 69.1% of its total revenues on COGS. Healthcare Research Services industry average (COGS share of revenue) in the same period was 68.6%
- R&D share of Revenues: QuintilesIMS R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, QuintilesIMS spent 14.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Healthcare Research Services industry average SG&A spending in the same period was 16.2%
- Inventory share of Revenues: QuintilesIMS Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, QuintilesIMS invested 25.3% of its total revenues on Accounts Payable (A/P) Healthcare Research Services industry average Accounts Payable investment in the same period was 10.4%
- Accounts Receivable share of Revenues: As a percentage of revenue, QuintilesIMS invested 24.8% of its total revenues on Accounts Receivable (A/R). Healthcare Research Services industry average Accounts Receivable investment in the same period was 21.6%
- PP&E share of Revenues: As a percentage of revenue, QuintilesIMS invested 5.9% of its total revenues on Property, Plants, and Equipments (PP&E). Healthcare Research Services industry average PPE investment in the same period was 15.2%
- Intangibles share of Revenues: As a percentage of revenue, QuintilesIMS invested 248.9% of its total revenues on Intangibles. Healthcare Research Services industry average Intangibles investment in the same period was 122.5%
- Net Margins: QuintilesIMS Net Margins in the year 2016 were 1.7%. Healthcare Research Services industry average Net Margins in the same period were 4.6%
Sector and Industry Association of QuintilesIMS
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
QuintilesIMS is associated with Healthcare Sector Group, Healthcare Services Sector, and Healthcare Research Services Industry.
Healthcare Services sector is comprised of the following industries: Drug Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:
- Drug Stores, PBM and Distributors industry includes nationwide drugstore chains, pharmacy benefit management (PBM) companies, and drug distributors. Drug stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims.
- Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
- Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
- Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
- Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.
Industry Ranking of QuintilesIMS
With $6.9 billion revenues, QuintilesIMS ranked number 2 of all the companies in the US Healthcare Research Services industry. There were a total of 14 public companies in the US Healthcare Research Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Healthcare Research Services industry by revenues during 2016 were:
- LabCorp ($9.6 billion)
- QuintilesIMS ($6.9 billion)
- Parexel International ($2.4 billion)
- PRA Health Sciences ($1.8 billion)
- Charles River Laboratories International ($1.7 billion)
- INC Research ($1.6 billion)
- Radnet ($884.5 million)
- Albany Molecular Research ($570.5 million)
- Medpace Holdings ($421.6 million)
- NeoGenomics ($244.1 million)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.