EUR 850.00 For Business Accounts Only

Morningstar | Raising FVE to $118 for Narrow-Moat IQVIA Due to Robust Near-Term Growth Outlook

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, and IMS Health, a dominant player in life sciences data and analytics. The long-term strategic benefit of the merger remains somewhat uncertain, but there is no question that the company is the entrenched leader in both the CRO space and life sciences data and analytics. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval. Just over 50% of revenue comes from the research and development segment (outsourced clinical research), about 40% from the technology and analytics segment (legacy IMS Health and real-world data solutions), and under 10% from contract sales. The research and development segment focuses on late-stage research, which requires thousands of patients across the globe. IQVIA is one of the few CROs with the global infrastructure to win these contracts, and its size means it works on more clinical trials than any competitor, further sharpening its clinical and regulatory expertise.The company’s comprehensive data set of de-identified patient records and script data enhance its ability to attract and retain healthcare customers throughout the life cycle of a drug product. IQVIA compiles data from over 100,000 sources, including pharmacies, medical claims, and electronic health records, and has access to over 500 million patient records. This unmatched data set, layered with proprietary methodology, enables clients to set informed strategies to most effectively commercialize their drugs. As a result, the business commands a pricing premium and high retention rate of existing clients. Access to this data helps inform patient identification for clinical trials and successful trial design, but the true advantage lies with real-world evidence, in which cohorts of de-identified patient data sets can be used in lieu of traditional clinical trial cohorts for regulatory approval.