The pharmaceutical research wing of AC Nielson ORG-MARG will be merged with IMS Health India Private Ltd soon, it is learnt. Sources said the merged entity, to be known as ORG IMS Research Pvt Ltd, would come into existence from January 2004. The deal was finalised in the US somewhere in the third week of December '03.

Financial aspects of the deal, including the nature of equity offtake are not available. When contacted, Vin Khisty, country manager, IMS Health India Private Limited, refused to divulge the details saying nothing concrete in the form a deal has taken place as of yet.

"We are holding discussions with many leading parties. Talks with ORG MARG have been taking place since quite a long time. Nothing concrete took shape until now," Khisty said.

According to sources, as per the deal IMS will retain ORG name in the products for the time being as it enjoys considerable brand equity and will market all the products under the name of ORG. However, the style, presentation, classification of the information in these products will be according to IMS international classification.

To ensure smooth transition, the merged entity will continue to market both ORG and IMS products for the next 4-5 months, but it will ease out the IMS products from the markets eventually. And IMS will stop all the promotional activities of its products in the meantime.

Regarding the staff strength of the new entity, IMS has agreed to retain around 22 people from ORG. They will move to IMS office in Andheri, Mumbai from the first of January 04.

ORG's pharma division employs nearly 200 people. Whereas the Indian arm of global healthcare audit major IMS has a 50-membered team. With 22 of ORG staff moving to IMS, it is not sure what will be the plan on cards for the remaining people.

It is also decided that a new chief executive officer (CEO) who is neither from IMS nor ORG will take over the merged entity, sources said.

Both the rival pharmaceutical audit firms have been in thick competition for years now. The pharma business of ORG claims the leadership with a 70 per cent market share and an estimated sales turnover of Rs.15 crore. IMS India has a turnover of a little over Rs.7 crore. Kolkata-based C MARC is the third market research company providing medical audit data.

It is to be recalled that IMS had made a bid, earlier in 1998, for ORG. Later, in 2000, another attempt by both the competitors to form a joint venture was again foiled, as ORG wanted 74 per cent stake in the merged entity.

The Dutch consumer behaviour, entertainment information, media information and precision marketing company VNU owns 96 per cent in ORG-MARG. Chairman Titoo Ahluwalia owns three per cent and the balance one per cent is with a trust created by Ahluwalia.