Omnicom To Bolster Healthcare Marketing With BioPharm Buy

Omnicom Group Inc. (NYSE:OMC) , the world’s leading advertising, marketing and corporate communications company, recently announced that its healthcare segment Omnicom Health Group would be acquiring BioPharm Communications. The details of the acquisition remain undisclosed.

Headquartered in New Hope, PA, BioPharm serves 17 out of 25 major pharmaceutical companies across the globe. BioPharm Communications is a leading communications agency that focuses on the development and multi-channel operation of proprietary marketing programs. The company designs programs that address specific healthcare marketing opportunities and helps brands tackle market challenges across a wide range of addressees.

Omnicom Health Group is likely to benefit from BioPharm's technology and marketing expertise in reaching out to a wide array of customers. This acquisition will enable Omnicom to expand its leadership position in a highly competitive data-driven healthcare market.

Per a research report provided by Markets and Markets, the global healthcare analytics market is likely to reach $18.7 billion by 2020 from $5.8 billion in 2015, at a CAGR of 26.5%. Given the exponential rate of growth, the BioPharm acquisition is expected to fetch higher revenues for Omnicom in the years to come and fortify its leadership position as a multichannel marketer for leading healthcare clients.

The top brass at BioPharm such as its co-founders, Jeff Persinger and Daniel Egeland, EVP and Chief Sales and Marketing Officer along with other executives will retain their place in the new company post transaction.

The acquisition is expected to be completed by the end of the second quarter of 2016.

Omnicom Health Group is a renowned communication company with over 3,200 healthcare communications specialists serving more than 100 clients in over 55 offices worldwide.

Omnicom carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth a look include WPP (LON:WPP) plc (NASDAQ:WPPGY) , Publicis Groupe SA (OTC:PUBGY) and Vectrus, Inc. (NYSE:VEC) . WPP and Vectrus sport a Zacks Rank #1 (Strong Buy), while Publicis Groupe carries a Zacks Rank #2 (Buy).