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Neoforma and Medbuy, Canada's Largest National GPO, to Offer Online Procurement Solution; Medbuy Selects Neoforma as its E-commerce Provider for Canadian Healthcare Market
Business Editors & Health/Medical Writers
SAN JOSE, Calif. & LONDON, Ontario--(BW HealthWire)--Nov. 6, 2000--Neoforma.com, Inc. (Nasdaq:NEOF), a leading e-commerce medical marketplace builder in the United States, and Medbuy Corp. today announced that they have entered into a 10-year strategic relationship to jointly develop a comprehensive Internet solution for the Canadian healthcare marketplace. The agreement names Neoforma as Medbuy's exclusive provider of Internet e-commerce solutions for the procurement of products and services. Terms of the agreement were not disclosed.
Medbuy, Canada's largest national medical group purchasing organization (GPO), is owned by 14 leading Canadian healthcare institutions, with an additional five Portfolio members, which collectively represent more than 170 facilities. Its hospitals purchase more than $300 million U.S. ($450 million Canadian) of hospital supplies annually.
Medbuy represents greater than 20 percent of the Canadian healthcare market, measured in active beds for acute, pediatric and long-term care. Medbuy currently negotiates contracts for medical supplies in four categories -- operating room, medical imaging, medical-surgical and pharmaceuticals.
Medbuy recently established a wholly owned subsidiary, Canadian Health Marketplace Corporation (CHM), to serve Medbuy institutions and the rest of the Canadian market. Together, CHM and Neoforma will develop a unique, custom, online marketplace that is also known as Canadian Health Marketplace (CHM Marketplace).
Neoforma will power the CHM Marketplace to offer a variety of Internet-based services, including online product purchasing, online auctions of new and refurbished medical products and online tracking of purchases and product usage. CHM will enhance the value of procurement services for all Canadian buyers and suppliers that participate in the new marketplace.
"We are proud to align with Medbuy to power the CHM Marketplace for the benefit of the Canadian healthcare market," said Bob Zollars, chairman, president and chief executive officer of Neoforma. "We are excited to now work with the largest GPO in Canada along with the largest GPO in the United States."
Doug McVeigh, president of Medbuy, said, "With Neoforma's technological expertise in building healthcare marketplaces and their depth of industry knowledge, we believe that CHM will quickly become the pre-eminent e-commerce service provider for the Canadian healthcare market."
"We estimate that CHM will cut the current costs of medical sales and distribution by six to 15 percent, saving healthcare professionals time, and freeing up resources that can be used for other priorities, such as patient care," McVeigh continued.
Neoforma's solutions are built by healthcare and technology professionals, and are based on a scalable, reliable technology platform and proven implementation methodology. Medbuy is hosting demonstrations of Neoforma's technology at its booth during the annual meeting of the Ontario Hospital Association, taking place this week in Toronto (Nov. 6-9).
About Neoforma.com Inc.
Neoforma.com, Inc. is a leading provider of business-to-business e-commerce solutions to the global medical marketplace. Focused on transforming the inefficient and highly fragmented healthcare supply chain, the company provides online solutions that enable buyers to lower product-procurement costs, while giving suppliers a new, highly efficient direct marketing channel. Neoforma is building multiple custom marketplaces to meet the needs of leading healthcare organizations. Neoforma's comprehensive e-commerce solutions are focused on improving the process of healthcare purchasing, from planning to procurement to liquidation. For more information, visit the company's web site at www.neoforma.com.
About Medbuy Corp.
Medbuy Corp. is Canada's largest national medical group purchasing organization, owned by 14 of the country's leading health care institutions. Medbuy contracts for the purchase of medical supplies in four categories -- operating room, medical imaging, medical surgical and pharmaceuticals. Medbuy has also developed programs to strengthen the qualitative aspects of the GPO, delivering extensive value added benefits in such areas as education, product standardization and information sharing. For more information, visit www.medbuy.com.
About Canadian Health Marketplace Corporation
Canadian Health Marketplace Corporation was established by Medbuy Corporation to provide a variety of Internet-based services to the Canadian health-care marketplace. Services to be provided include product purchasing, requests for proposal and quotations, auctions and information sharing. Medbuy's extensive expertise in the Canadian health-care marketplace assures CHM will become the pre-eminent e-commerce provider. CHM will deliver its services at www.chmkt.com.
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements include statements related to the anticipated benefits of Neoforma's agreements with Medbuy and CHM. There are a number of technological and business risks that could cause actual results to differ materially from those anticipated by these forward-looking statements. Those risks include the failure of buyers and suppliers to participate in the CHM Marketplace and technology difficulties that may occur. These risks and other risks are described in Neoforma.com's periodic reports filed with the SEC including its Form 10-K for the year ended Dec. 31, 1999, its Form 10-Q for the quarter ended June 30, 2000 and its Proxy Statement, dated June 29, 2000, relating to the VHA and UHC transactions. Neoforma.com assumes no obligation to update the forward-looking information contained in this news release.
Note to Editors: Neoforma.com, Inc., and www.neoforma.com are trademarks of Neoforma.com, Inc. Other Neoforma.com logos, product names, and service names are also trademarks of Neoforma.com, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners.