In its first quarter after the merger of Quintiles and IMS Health, the newly formed single company said it has kick-started a $1.5 billion repurchase of QuintilesIMS’s ($Q) outstanding common stock as it also forms new business units.
The repurchases, usually done to help boost the value of remaining shares on the market, should be completed by next year, according to the co’s statement.
The new entity was earlier this year meant to be valued at around $19 billion, but yesterday Quintiles IMS Holdings was worth $17.78 billion, with its share price falling steadily over the past month.
After announcing a re-jig of its exec team back in August, the firm has this week also created three new reporting segments: Commercial Solutions, Research & Development Solutions and Integrated Engagement Services.
The Commercial Solutions segment includes nearly all of the IMS legacy businesses as well as the Quintiles legacy real world late phase, payer/provider and advisory businesses.
The R&D Solutions segment includes much of the Quintiles legacy product development segment, and the Integrated Engagement Services segment includes most of Quintiles legacy contract sales organization businesses.
During its third quarter report, the combined company said its Q4 revenue guidance was $1.95 billion to $1.99 billion, with an adjusted diluted EPS of $1.04 to $1.08 per share.