News and information provider Thomson Reuters has announced that it will sell its healthcare business, which includes software and data products for clinicians, hospitals, and drug manufacturers. CEO Thomas Glocer said in the announcement that its healthcare business “lacks the integration with and global scale of our other units” and that proceeds from its sale will be reinvested in its core markets of financial, legal, media, and science.
Thomson Reuters is a publicly traded company with annual revenue of $13 billion and market capitalization of $31 billion. The company says the healthcare business generates $450 million in annual revenue, with a profit margin comparable to its consolidated 19.3%. Its products are used by more than 3,000 US hospitals.
Popular Thomson Reuters healthcare products include Micromedex (drug reference), CareNotes (patient education), ClinicalXpert Navigator (mobile patient information), CareDiscovery (benchmarking), CareFocus (clinical surveillance), Ascent (financial management), The 100 Top Hospitals program, and Clinical Performance Solutions (formerly Solucient and Medstat).
The company’s benchmarking database stores information from more than 750 healthcare organizations and is claimed to be the largest in the industry. Its MarketScan data warehouse contains information on more than 40 million unique patients. Thomson Reuters announced on May 25 that it had jointly developed a data and analytics solution with GE Healthcare to support population-based effectiveness and outcomes research.
The company says it expects the sale of the unit to close by the end of the year. Morgan Stanley and Allen & Co are its financial advisors.
We interviewed John Loyack, the company’s director of healthcare product management, in December.