ADVISORY/MEDIA ALERT.--(BW HealthWire)-- -0-
MCKESSON AND HBOC MERGE TO CREATE MCKESSON HBOC,
THE WORLD LEADER IN HEALTHCARE SERVICES,
WITH EQUITY MARKET VALUE OF ALMOST $23 BILLION
PRESS CONFERENCE AND Q&A SESSION
ON MONDAY, OCTOBER 19, 12 P.M. EDT
(TELEPHONE PARTICIPATION ALSO AVAILABLE)
Merger Combines the No. 1 Healthcare Supply Management and
the No. 1 Healthcare Information Companies
Uniting Information and Supply Management Leaders Will Improve
Productivity and Clinical Outcomes for Healthcare Delivery
WHAT: McKesson Corporation, the leading healthcare supply management
company in North America, and HBO & Company, the leading
healthcare information systems & technology company in the U.S.,
today announced that they have signed a definitive merger
agreement for McKesson to acquire HBOC. This merger will create
the world's first comprehensive healthcare supply management and
information solutions company, uniting two top-performing,
rapidly growing leaders in their respective industries. The
merged company, McKesson HBOC, will have estimated revenues of
more than $20 billion and an equity market capitalization of
almost $23 billion.
At the press conference and on the call, executives from the two
companies will discuss how the complementary capabilities of
McKesson and HBOC, which together address the entire information
and supply cost structure across the full continuum of
healthcare, will enable the new company to uniquely offer a
comprehensive source for the health care products and systems,
increasing the efficiency of providers and improving the quality
of care for patients. They will also talk about how customers,
employees and shareholders of both companies will benefit from
the expanded product and service offerings, broader reach and
integration of information systems and supply management from
McKesson HBOC.
WHO: Mark Pulido, chairman and chief executive officer, McKesson
Corporation Charles McCall, president and chief executive
officer, HBO and Company Richard Hawkins, vice president and
chief financial officer, McKesson Corporation Jay Gilbertson,
vice president and chief financial officer, HBO and Company
WHERE: Waldorf-Astoria 301 Park Ave. (between 49th and 50th St.), New
York, NY Jade Room
WHEN: 12:00 P.M. (EDT)
SLIDES: Slides for the presentation are available on the McKesson
World Wide Web site (www.mckesson.com) in the site's Investor
Resources section
TELEPHONE: To join the briefing via telephone, call 800/369-2150
(password: Mark), ask for LARRY KURTZ, host
CONTACTS: McKesson: Larry Kurtz (415) 983-8418 or Kim Sankaran (415)
983-8416 HBOC: Monica Brown (770) 668-5926 or Beth Dalton (770)
393-6587
-0- McKesson McKesson Corporation (NYSE: MCK) is a large United States-based corporation specializing in the distribution of health care systems, medical supplies and pharmaceutical products. Profile McKesson Corporation, a Fortune 100 company, is the largest healthcare supply management company in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. through its U.S. healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. businesses; its Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. subsidiary, Medis Health and Pharmaceutical Services; and its 22.7% interest in Mexico's Nadro. McKesson distributes pharmaceutical, medical and surgical products and provides healthcare supply management services and technologies on a nationwide basis across the entire continuum Continuum (pl. -tinua or -tinuums) can refer to:
supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. . McKesson, founded in 1833 and headquartered in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14,000 employees and is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Pacific stock exchanges under the symbol, "MCK MCK McKinsey & Company (consulting firm) MCK Mohawk Council of Kahnawake (Quebec) MCK Mon Colle Knights (children's TV show) MCK Mirror Classes Kit MCK Maintenance Check ." Mission McKesson's Mission is to be the world leader in healthcare supply management by advancing the success of our partners. Our partners are our provider customers, our manufacturing partners, our employees and our shareholders. When we succeed, they succeed. McKesson has two strategies for achieving its Mission. First, to remain the distributor of choice for pharmaceuticals and medical-surgical supplies by performing the basics better than anyone else. Second, to provide the tools, technologies and programs that help customers reduce costs and improve quality as they deliver healthcare. Operations Overview McKesson is the nation's leading wholesaler of pharmaceuticals and medical-surgical products to pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major , food stores and mass merchandisers, chain drugstores, hospitals and IDNs, physician clinics and extended care sites. Each day of the year, McKesson delivers prescription prescription In property law, the effect of the lapse of time in creating and destroying rights. Acquisitive prescription allows an individual, after unequivocal possession for a specific period, to acquire an interest in real property, such as an easement, but not the pharmaceuticals, over-the-counter drugs over-the-counter drug A therapeutic agent that does not require a prescription, which the FDA feels can be safely self-prescribed by non-physicians. Cf Prescription drug, Under-the-counter. and medical-surgical supplies to 4,500 customers for use by patients in all 50 states. Each day, McKesson's communication infrastructure processes 30 million business transactions, connecting McKesson's 130 business locations with its 45,000 customers and 3,000 suppliers. In addition, McKesson provides a range of tools and technologies that help its customers reduce costs and improve quality as they deliver healthcare to patients. These products and services include pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. networks and franchises that allow independent community pharmacies to enjoy the technical capabilities and buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of chain drugstores, advanced supply management logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , on-line order entry and inventory management, hospital pharmacy A hospital pharmacy is concerned with pharmacy service to all types of hospital and differs considerably from a community pharmacy. Some pharmacists in hospital pharmacies may have more complex clinical medication management issues whereas pharmacists in community automation systems and software, and a variety of market-enhancement services for manufacturers. -0-
Operating Groups
McKesson is organized into three operating groups:
-- McKesson Customer Operations Group consists of the company's
pharmaceutical distribution operations and retail pharmacy sales
and service, addressing the needs of independent pharmacies, mass
merchandisers, national pharmacy chains and food/drug stores.
McKesson operates 35 pharmaceutical distribution centers that
deliver healthcare products to retail customers as well as
McKesson's institutional customers in all 50 states on a timely
basis. McKesson APS is the leader in the development and
implementation of productivity solutions, including automated
counting and dispensing technology for retail, mail order and
outpatient pharmacies. The Customer Operations Group also
includes McKesson's Carrollton Operations, which handles customer
service and support and financial logistics. The Customer
Operations field sales force works closely with the
Pharmaceutical Services and International Group to execute retail
programs and support McKesson's pharmacy networks. Its products
and services include:
-- OmniLink(R), which provides on-line confirmation of
thousands of daily price updates and clarifies managed care
requirements, generating significant savings for retail
pharmacists,
-- EconoLink(R) order entry and inventory management system,
and
-- InfoLink(SM), a Web-based technology that allows both
McKesson and its customers real-time access and analysis of
detailed product usage and purchasing information down to
the store level.
-- McKesson Pharmaceutical Services and International Group combines
the company's pharmaceutical procurement and product management
functions in a single group that is focused on improving sales
and marketing effectiveness for manufacturers and creating
affiliation programs and information technologies for its retail
customers. These include: the Valu-Rite(R), Valu-Rite/CareMax(SM)
and Health Mart(R) retail networks; Patient Care Enhancing
Programs(SM) to ensure patient compliance with appropriate
pharmaceutical therapy; Select Generics(SM) for pharmacies;
Healthcare Delivery Systems (HDS), which performs an entire suite
of specialized logistics and patient services for manufacturers
and its subsidiary, J. Knipper and Company, one of the nation's
leading providers of direct marketing and fulfillment services to
the health care industry; and McKesson BioServices Corporation,
which provides biomedical support services to the pharmaceutical
and biotechnology industries, U.S. government, universities and
institutions, and contract research organizations. The McKesson
Pharmaceutical Services and International Group also includes
Medis Health and Pharmaceutical Services, the largest healthcare
distributor in Canada.
-- McKesson Health Systems Group consists of the company's McKesson
Health Systems business unit, McKesson General Medical, McKesson
Automated Healthcare and McKesson MedManagement. McKesson Health
Systems serves the pharmaceutical and supply management needs of
hospitals, healthcare organizations and integrated health
networks. McKesson General Medical provides medical-surgical
supply management across the continuum of care, including acute
care, primary, or physician care, and extended care. McKesson
Automated Healthcare is the nation's premier manufacturer of
automated pharmacy systems including ROBOT-Rx(TM), a robotic
pharmacy dispensing and utilization tracking system that enables
hospitals to lower pharmacy costs while significantly improving
the accuracy of drug dispensing, and AcuDose-Rx(TM), a new
unit-based cabinet that securely dispenses bar-coded unit-dose
medications. McKesson MedManagement is a leading pharmacy
management, purchasing, consulting and information services
company. McKesson Health Systems products for institutions
include:
-- SupplyNET(SM), an advanced supply chain product selection
and logistics management program that uses physician and
pharmacy data to provide cost management analysis and
savings recommendations, and
-- CoSource(SM), which integrates pharmaceutical distribution
services with SupplyNET and automated pharmacy technologies
and information systems from McKesson Automated Healthcare.
-0- On September September: see month. 30, McKesson announced that it had signed a definitive agreement to acquire Red Line HealthCare Corporation, a subsidiary of Novartis Novartis International AG (NYSE: NVS) is a multinational pharmaceutical company based in Basel, Switzerland that manufactures drugs such as diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec / Glivec), cyclosporin A (Neoral / , for approximately $230 million in cash and assumed debt. Red Line is a leading distributor of medical supplies and services to the extended care industry, including long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and home care sites. Following the completion of the transaction, Red Line will become a unit of McKesson General Medical. MGM's long-term care business will be combined with Red Line's. Financial Highlights for fiscal years ending March 31 (dollars in millions except per share amounts) from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before unusual items: -0-
FY1998 FY1997 FY1996
Operations
Revenues 18,153 12,887 9,954
Operating Profit 435 274 246
EBITA 404 238 217
Net Income 176 115 121
Financial Strength
Total Assets 5,608 5,173 3,360
Working Capital 1,528 1,124 821
Stockholders' Equity 1,407 1,261 1,065
Performance Measures
Return on Average 13.3% 12.4% 13.0%
Stockholders' Equity
Return on 21.6% 18.3% 28.8%
Committed Capital
Diluted EPS $ 1.80 $ 1.29 $ 1.29
More information about McKesson can be obtained on the World Wide
Web at: http://www.mckesson.com
-0- HBOC HBOC HBO & Co of Georgia HBOC Hereditary Breast and Ovarian Cancer HBOC Hemoglobin-Based Oxygen Carrier HBOC Hawke's Bay Orienteering Club (New Zealand) HBOC Hunter Bird Observers Club HBOC Horse Breeders and Owners Conference Corporate Overview Healthcare Information Systems & Technology With approximately 7,000 employees worldwide, HBOC serves the information systems needs of the health enterprise -- integrated health systems, managed care organizations, physician enterprises, payors, home health agencies and hospitals. HBOC develops, implements and supports patient care, financial, clinical, homecare British Gas HomeCare is the name for British Gas Services which operates in the United Kingdom, which was originally set up to provide maintenance for central heating and other gas appliances. , managed care and strategic management software that facilitates the integration of data throughout the enterprise. HBOC also provides a full complement of network technologies as well as outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services for managing business offices and information system operations. HBOC's only focus is the healthcare market, and the company is an industry leader in revenue and market share with products and services that are sold throughout the world. Mission HBOC's mission is to deploy information technology to help its customers as they restructure the healthcare delivery process. The company is committed to continuous quality improvement so that every product and service HBOC offers is known as the best in the market. Financial Performance The company's financial performance is illustrated by the following highlights: -0-
For the year: 1997 1996 1995
Revenue (in millions) $ 1,203.2 $ 950.9 $ 715.9
Operating Income (in millions)(1) $ 318.1 $ 199.4 $ 113.7
Net Income (in millions)(1) $ 200.7 $ 124.5 $ 70.3
Earnings Per Share(1) $ .47 $ .30 $ .18
R&D Expenditures (in millions) $ 123.7 $ 112.5 $ 94.9
Sales Stock Price Per Share:
High $ 24.31 $ 18.13 $ 10.81
Low $ 10.63 $ 8.19 $ 4.11
Employees At Year-End 6,286 5,417 5,030
For the quarter ending: March 31, June 30,
1998 1998
Revenue (in millions) $ 342.8 $ 376.7
Operating Income (in millions)(1) $ 103.0 $ 119.0
Net Income (in millions)(1) $ 64.9 $ 73.8
Earnings Per Share(1) $ .15 $ .17
R&D Expenditures (in millions) $ 31.2 $ 34.8
Sales Stock Price Per Share:
High $ 30.47 $ 35.56
Low $ 21.69 $ 28.00
(1) Excludes nonrecurring charge
All share and per share amounts have been restated to reflect the
1998 two-for-one stock split effected in the form of a stock dividend.
Product Portfolio
HBO & Company's products and services are designed to meet the
information needs of all participants in the integrated health system.
HBOC offers solutions in the following categories:
-- Enterprise management -- Managed care administrative systems, and
clinical auditing and compliance tools for payors and providers
-- Clinical management -- Electronic medical record including
documentation, guidelines and orders for the enterprise,
hospital, homecare and physician office markets
-- Practice management -- Billing, time management and
administrative systems for physicians
-- Access management -- Scheduling, master person index and
encounter management
-- Community health management -- Demand management, disease
management and computer telephony systems
-- Resource management -- Materials management, accounts payable,
general ledger, staff scheduling
-- HIS solutions -- Patient care, clinical and financial systems
-- Infrastructure -- Enterprise repository, imaging and interface
manager
-- Enterprise services -- End-to-end support from the application to
the desktop
-- Outsourcing services -- Information technology, revenue cycle,
networking
Competitive Advantages
-- Financial strength
-- Comprehensive product line
-- Strategic vision
-- Leading market share
-- Clinical competency
-- Leadership technology
HBOC Offices
-- Corporate Headquarters -- Atlanta
301 Perimeter Center North
Atlanta, GA 30346
(770) 393-6000
www.hboc.com
-- Sales and Regional Offices
Amherst, Mass. Hauppauge, N.Y. Mt. Laurel, N.J.
Boulder, Colo. Itasca, Ill. Murray Hill, N.J.
Cambridge, Mass. Lexington, Mass. Somerset, N.J.
Charlotte, N.C. Lisle, Ill. Omaha, Neb.
Chicago Longwood, Fla. Overland Park, Kan.
Dallas Malvern, Pa. Phoenix
Dubuque, Iowa Marietta, Ga. Pittsburgh
Eugene, Ore. Minneapolis Rockville, Md.
Salt Lake City
San Diego
San Francisco
Scottsdale, Ariz.
Seattle, Wash.
Springfield, Mo.
Tampa, Fla.
Wheeling, Ill.
Whittier, Calif.
-- International Offices Canada, Puerto Rico, United Kingdom,
Ireland and Israel
-0- Stockholder Information HBO Hyperbaric oxygen therapy (HBO) A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy & Company's common stock trades on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. National Market (symbol:HBOC). Updated 10/1/98 |
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