As a result, it's expected to be relatively resilient in the face of cyclical economic downturns like the one we're facing now. Of course, if pharmas went into a slump because of pricing pressures or a shortage of new products, IMS would be vulnerable. For now the company's growth prospects look sound, though analysts appear slightly less bullish than IMS itself. There are currently more than 1,000 drugs in development at pharmaceutical companies. Plus, there are plenty of new markets for IMS to tap into.
Overseas markets offer plenty of potential, too.
In a reflection of the multinational scope of major pharmas, IMS draws two-thirds of its sales from outside the U.S., including a considerable portion from Europe and Japan. Frank says the company has seen strong growth in the relatively young markets in Latin America, Asia and Eastern Europe. And though it's not expected to boost growth significantly, a new initiative to push consulting services could foster closer ties with existing clients. By aggressively promoting consulting, IMS would fill an existing need among its customers. Knocked Down on the Mat, IMS Gets Back on Its Feet Of course, all that growth doesn't come risk-free.