IMS HEALTH Launches Provider Perspective: Home Health Care — Industry's First Tracking Service for U.S. Home Health Care Pharmaceutical Sales

Business Wire, July 27, 2000

Business/Health & Science Editors

LONDON--(BW HealthWire)--July 27, 2000

Addresses Fastest-Growing, $1.6 Billion

Non-Retail Distribution Channel

IMS HEALTH (NYSE: RX) today announced the launch of Provider Perspective(TM): Home Health Care, a new service that tracks pharmaceutical sales within the rapidly expanding U.S. home health care market. Pharmaceutical sales into the U.S. home health care market grew 30 percent to $1.57 billion in the 12-month period ending May 2000, the fastest rate of growth for all provider channels. IMS HEALTH is the world's leading provider of information solutions for the pharmaceutical and healthcare industries.

"With the continuing shift of healthcare costs from the inpatient setting to a variety of outpatient, alternative and home settings, it's critical that pharmaceutical expenditures be tracked and measured at this vital point of distribution," said Liz Coyle, vice president, Market Research, IMS HEALTH North America. "Provider Perspective: Home Health Care provides new insights into this growing market segment, and takes us to a new level in mapping the total U.S. pharmaceutical landscape for our customers."

Coyle attributes the growth of home health care pharmaceutical activity to several key factors: shorter stays in hospitals and nursing home facilities, medical and technological advances for in-home treatments, and the medical community's acknowledgment that many treatments can be effectively delivered in a home setting. Injectable products made up the largest share of expenditures in the channel, with sales exceeding $1 billion, or 6 percent of the total injectable market.

IMS HEALTH's Provider Perspective: Home Health Care is the newest member of the industry-benchmark Retail & Provider Perspective(TM) family of insight services for the pharmaceutical industry. Other pharmaceutical channels tracked by the IMS HEALTH Retail & Provider Perspective insight family include: Mail Order, Independent Pharmacies, Chain Drugstores, Mass Merchandisers, Food Stores with Pharmacies, Hospitals, Clinics, HMOs, Long-Term Care and Federal Facilities.

IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries. With more than $1.1 billion in 1999 revenue, IMS HEALTH operates in more than 100 countries. IMS HEALTH is the largest pharmaceutical manufacturer information partner, with more than 40 years' experience in the industry. Key products and services integral to customer day-to-day operations include market research for prescription and over-the-counter pharmaceutical products and sales management information to optimize sales force productivity. Additional information is available at: http://www.imshealth.com

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although IMS HEALTH believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results of IMS HEALTH to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to (i) the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. dollar, and the ability to successfully hedge such risks, (ii) to the extent IMS HEALTH seeks growth through acquisitions and joint ventures, the ability to identify, consummate and integrate acquisitions and ventures on satisfactory terms, (iii) the ability to develop new or advanced technologies and systems for its businesses on time and on a cost-effective basis, (iv) regulatory, legislative and enforcement initiatives, particularly in the areas of medical privacy and tax, and (v) deterioration in economic conditions, particularly in the pharmaceutical, healthcare or other industries in which IMS HEALTH's customers operate. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company made from time to time with the Securities and Exchange Commission.