American Red Cross Signs Agreement with Novation That Expands Access to PLAS+RSD.

WASHINGTON--(BUSINESS WIRE)--Aug. 5, 1999--

The American Red Cross and Novation, the foremost group purchasing organization in health care, signed an agreement today that offers all Novation customers greater access to Plas+SD (Pooled Plasma, Solvent Detergent Treated).

Irving, Texas- based Novation is the supply company of VHA Inc. (VHA) and the University HealthSystem Consortium (UHC). Novation represents nearly 2,000 health care organizations nationwide, including some of the nation's most renowned community hospitals and teaching hospitals.

The new agreement also extends to the 4,200 health care organizations that purchase supplies through HealthCare Purchasing Partners International, LLC (HPPI), a company that markets Novation contracts to organizations that do not belong to VHA or UHC.

This is the first group purchasing agreement the Red Cross has entered into for Plas+SD. Through the agreement, which goes into effect on September 1, 1999, Novation and HPPI customers have access to Plas+SD at a price lower than the current hospital list price. The two-year agreement includes 2 one-year renewal options.

"We're pleased to offer VHA and UHC members additional value through our lab program via this contract," said John Engles, lab program director at Novation.

Plas+SD is the first virus-inactivated frozen plasma product for transfusion. The FDA approved Plas+SD in May 1998 as a safe alternative to fresh frozen plasma for transfusion.

Plas+SD is pooled human plasma that has been treated with the solvent detergent (SD) process. This process virtually eliminates the risk of transmitting the lipid-enveloped viruses that cause AIDS, hepatitis C and hepatitis B by destroying their lipid (fatty) coating. The process has been used since the late 1980s on plasma derivatives such as intravenous immune globulin and antihemophilic factor.

To date, billions of units of SD-treated products have been transfused without a single documented case of lipid-enveloped virus transmission. The SD process does not affect non-lipid enveloped viruses such as hepatitis A and parvovirus B19. However, all lots of Plas+SD are PCR tested as "negative for HAV nucleic acid" prior to release. This is based on measuring the amount of HAV genomic material present in the product. A negative result means that the product has been tested and shown to have not more than an average of 9.4 GE (genome equivalents) of HAV genomic material per mL.

The Red Cross agreement gives Novation and HPPI customers access to Plas+SD through all 37 Red Cross blood regions, Medical Distribution, Inc. (MDI) and several other select distributors across the country at the contract price. Additionally, non-Red Cross blood centers will be invited to participate as authorized distributors of the product under the new agreement.

"We see this agreement as a tremendous opportunity to make this important product available to more patients around the country who require plasma transfusions," said Chris Lamb, chief operating officer of Plasma Services for the American Red Cross. "Our mission is to provide the nation with the safest, most efficacious plasma products possible. Our relationship with Novation will help us achieve our mission."

The American Red Cross is the nation's largest supplier of blood, plasma and tissue products in the United States. The Red Cross supplies almost half of the nation's blood supply by working with more than 4.5 million donors and 3,000 hospitals through its national network of 37 blood regions. In addition, the Red Cross supplies one-quarter of the nation's tissue for transplantation through its network of 15 tissue centers nationwide.