IMS Health Rises on Ruling

NEW YORK — IMS Health Inc., which provides market research to pharmaceutical and health care companies, climbed to an eight-year high Tuesday after a federal judge overturned a law that kept companies from learning about doctors' prescription-writing habits.
Judge Paul Barbodoro of New Hampshire federal court said the law, which was signed in June, was an unconstitutional restriction on speech.
IMS and Verispan LLC had sued to stop the law from taking effect. New Hampshire is the only U.S. state to pass a law restricting provider-identifiable data, which pharmaceutical companies use to fine-tune their sales pitches to individual doctors.
At least a dozen other states have considered similar bills, and a federal version failed to make it out of committee last year. Robert W. Baird & Co. analyst Eric Coldwell said Barbodoro's ruling could make investors more enthusiastic about the stock.
"Following Nevada's recent election not to pursue similar legislation, this positive outcome may severely curtail other states' desire to pursue similar legislation," he said. "This year-long overhang is effectively quashed."
Coldwell reiterated an "Outperform" rating and $37 price target for shares of Fairfield, Conn.-based IMS.
The stock rose $2.13, or 7.3 percent, to $31.46 in afternoon trading on the New York Stock Exchange. Shares went as high as $31.60, their greatest value since March 1999.