2001 GHX Press Releases

DENVER, Colo. and SAN JOSE, Calif.—August 29, 2001— Global Healthcare Exchange, LLC (GHX) and Neoforma, Inc. (Nasdaq: NEOFD) have signed a definitive agreement to create the first comprehensive, integrated supply chain solution for the healthcare industry. GHX and Neoforma entered into this collaboration to deliver a more robust end-to-end solution to help their respective supplier and hospital customers more quickly realize the benefits of e-commerce and minimize the costs of connectivity and information exchange. Together, these two leading Internet-based healthcare supply chain solutions companies will also expedite efforts to establish critical industry standards. The GHX-Neoforma collaboration will leverage the core competencies of both companies. Under the terms of the three-year agreement, Neoforma’s current and future marketplaces will interface with GHX’s supplier connectivity portal and AllSource™ catalog, the industry’s most up-to-date and accurate electronic catalog. GHX will license portions of Neoforma’s innovative NeoConnect™ solution suite, which supports the rapid integration of trading partners for supply chain collaboration. Neoforma and GHX will market this integrated solution to existing and prospective customers. The two organizations also intend to jointly develop, market and sell technology and supply chain solutions. No equity was issued by either company in connection with the agreement. Other terms of the agreement were not disclosed. Neoforma and GHX expect the strategic alliance to accelerate the adoption of e-commerce by hospitals and suppliers, accelerating supply chain cost savings. The agreement enables Neoforma’s hospital customers, including the 514 hospitals currently contracted to use the Neoforma-powered Marketplace@Novation™, to transact business with GHX’s growing network of healthcare supplier members through the integrated solution, without the added cost of implementing and maintaining separate Internet connections. GHX’s connected suppliers will be able to sell their products to Neoforma’s current and future hospital customers through one Internet-based exchange, reducing implementation costs and simplifying the e-commerce strategy for these suppliers. GHX has signed more than 100 leading supplier members. To participate in the integrated solution, hospitals and suppliers will have agreements with both GHX and Neoforma. "We are proud to partner with GHX. This strategic alliance is good news for the healthcare industry," says Bob Zollars, chairman and chief executive officer of Neoforma. "As a result of the integrated solution created by this agreement, hospitals and suppliers can easily connect through one powerful and secure solution. The GHX-Neoforma alliance will enable both companies to undertake complementary development initiatives, allowing us to deliver greater value to our mutual hospital and supplier customers more quickly and at a lower total cost." “From the beginning, GHX has believed that the participation of all stakeholders, including hospitals, manufacturers, distributors and group purchasing organizations, is the best way to achieve real supply chain efficiencies,” adds GHX President Mike Mahoney. “For our customers, this means the integrated solution from GHX and Neoforma will enable them to more quickly realize the benefits of a fully connected supply chain. We’re excited to be working with Neoforma on this important step in making the vision a reality.” Recent studies confirm the strategic purpose behind this collaborative effort. “The Value of E-commerce in the Healthcare Supply Chain,” published in June 2001, found that supply costs represent a major portion of healthcare expenditures, which constitute a significant percentage of the U.S. economy. For hospitals, the study found that reducing supply chain costs can improve profitability and, ultimately, devote more resources to patient care. Suppliers can realize operational and sales efficiencies through effective use of e-commerce. It also concluded that e-commerce “value will be fully realized when supply chain participants reach the critical mass of acceptance, have the technology to integrate information system infrastructures, and design a common language for communication.” By working together, Neoforma and GHX will undertake complementary technology development efforts and expect to create a critical mass of trading partners and speed adoption of industry standards. Both companies have led efforts in the area of industry standards, including universal product numbers and health industry numbers, which are critical to the transfer of real time data. Together, GHX and Neoforma will work to expedite adoption of open standards to accelerate the delivery of operational efficiencies and strategic planning capabilities for supply chain participants. Neoforma and GHX will continue to provide independent, open and neutral technology to all members of the healthcare supply chain. About Global Healthcare Exchange GHX is an Internet-based trading exchange from which hospitals can purchase both medical and non-medical products more easily, quickly, and accurately than ever before. GHX is building a normalized, verified industry standard catalog, which will take advantage of deep connectivity between GHX, hospitals, and suppliers to improve efficiencies and add value throughout the healthcare supply chain. The privately held company was founded in March 2000 and its membership now includes more than 100 supplier members and more than 400 hospital members, representing 58 integrated delivery networks (IDNs). Equity members of GHX include Johnson & Johnson; GE Medical Systems; Baxter International, Inc.; Abbott Laboratories; Medtronic, Inc.; Becton, Dickinson & Co.; Boston Scientific Corporation; C.R. Bard, Inc.; Guidant Corporation; Siemens Medical Solutions and Tyco International, Ltd. For more information visit www.ghx.com About Neoforma Neoforma builds and operates Internet marketplaces that empower healthcare trading partners to optimize supply chain performance. Neoforma uses proven, scalable technologies to provide customized marketplace solutions and services that enable customers to maximize their existing technology and supply chain relationships. Healthcare providers, leading group purchasing organizations, manufacturers and distributors choose Neoforma as their e-commerce partner. For more information, visit the Company's new Web site at www.neoforma.com This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements include statements related to the minimization of connectivity costs, the acceleration of integration of hospitals and suppliers, the acceleration of the adoption of e-commerce and the acceleration of supply chain costs savings, and the establishment of critical industry standards. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include the ability of Neoforma to expand the breadth of products and services offered through its e-commerce marketplaces; the willingness of buyers and sellers of medical products to accept Neoforma’s and GHX’s business models of providing an e-commerce marketplace for the purchase and sale of medical products; the ability of Neoforma to manage its growth, and related technological challenges, including those anticipated to arise in working with GHX; and the ability of Neoforma to successfully manage its changing relationships with its strategic partners, suppliers and customers. Some of these risks and other risks are described in Neoforma's periodic reports filed with the SEC including its Form 10-K for the year ended December 31, 2000, its Form 10-Q for the quarter ended June 30, 2001 and its Proxy Statement, dated July 16, 2001. Neoforma assumes no obligation to update the forward-looking information contained in this news release. Neoforma and Neoforma.com are trademarks of Neoforma, Inc. Other Neoforma logos, product names and service names are also trademarks of Neoforma, Inc., which may be registered in other countries. Other product and brand names are trademarks of their respective owners. GHX-Neoforma Integrated Solution FAQs Contacts For Global Healthcare Exchange: Cheryl Flury Director of Marketing 720.887.7000 Karen Conway or Jason Rodman BRW LeGrand (for GHX) 303.298.8470 kconway@brwlegrand.com jrodman@brwlegrand.com For Neoforma: Rebecca Oles Neoforma Corporate Communications 408.468.4363 rebecca.oles@neoforma.com John Snyder (investors) Snyder Investor Relations 206.262.0291 john@snyderir.com
Posted on Wednesday, August 29, 2001 Posted by host
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