AmerisourceBergen Obtains Delay in Implementation of Department of Veterans Affairs New Pharmaceutical Distribution Contract.Business Editors/Health/Medical Writers VALLEY FORGE Valley Forge, on the Schuylkill River, SE Pa., NW of Philadelphia. There, during the American Revolution, the main camp of the Continental Army was established (Dec., 1777–June, 1778) under the command of Gen. George Washington. , Pa.--(BUSINESS WIRE)--Feb. 11, 2004 AmerisourceBergen Will Continue to Service VA Until 45 Days After the Court Decision AmerisourceBergen Corporation (NYSE NYSE See: New York Stock Exchange :ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. ) today announced that the U.S. Court of Federal Claims has issued a consent order, as agreed by the parties, delaying the implementation of the recent award of the Department of Veterans Affairs Veterans Affairs is a term of the business that deals with the relation between a government and its veteran communities, usually administered by the designated government agency. (VA) Pharmaceutical Prime Vendor contract to McKesson Corporation. The new contract was scheduled to begin April 1, 2004. The Court's order provides that AmerisourceBergen's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , AmerisourceBergen Drug Corporation, will continue to service the VA for a transition period of 45 days after the Court of Federal Claims makes a decision on the Company's recently filed challenge of the VA contract award. The order also provides that the Court will make a decision on or before March 25, 2004, and that until March 25, 2004, McKesson is prohibited from purchasing inventory to prepare for the VA business, although it can continue other transition activities. Further, if AmerisourceBergen's protest is upheld and the new VA contract is awarded, in whole or in part, to AmerisourceBergen, the Company will apply the relevant pricing from its VA proposal starting April 1, 2004. If AmerisourceBergen's protest is upheld and the VA is instructed by the Court to rebid re·bid v. re·bid, re·bid·den or re·bid, re·bid·ding, re·bids v.tr. 1. Games To bid (a previously bid suit) again in bridge. 2. the award, the Company and the VA will agree upon the pricing that will apply during the rebid period. If AmerisourceBergen's protest is denied, the Company will apply McKesson's pricing starting April 1, 2004 through the remainder of the 45-day transition period. On January 21, 2004, AmerisourceBergen's subsidiary, AmerisourceBergen Drug Corporation, filed a complaint with Court of Federal Claims asking that the award of the VA's Pharmaceutical Prime Vendor contract to McKesson be overturned and instead awarded, in whole or in part, to AmerisourceBergen. In its complaint, the Company asserts that the VA made improper evaluations and determinations concerning the offers it received for the new contract. The Court has scheduled a hearing on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers of the protest for March 11, 2004. AmerisourceBergen said its diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of expectations for fiscal year 2004, which ends September 30, 2004, remain unchanged at $4.10 to $4.20, excluding special items. About AmerisourceBergen AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical services company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dedicated solely to the pharmaceutical supply chain. It is the leading distributor of pharmaceutical products and services to the hospital market, physician's offices, alternate care and mail order facilities, and independent and chain pharmacies. The Company is also a leader in the long term care pharmacy marketplace, the workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. fulfillment business and contract packaging for manufacturers. With more than $45 billion in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. , AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 14,000 people. AmerisourceBergen is ranked #24 on the Fortune 500 list and was ranked #6 in the 2003 Business Week 50, a list of the 50 best performing companies in the S & P 500. For more information, go to www.amerisourcebergen.com. Forward-Looking Statements This news release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. Forward-looking statements may include statements addressing future financial and operating results of AmerisourceBergen and the benefits and other aspects of the 2001 merger between AmeriSource Health Corporation and Bergen Brunswig Corporation. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: competitive pressures; the loss of one or more key customer relationships; customer insolvencies; changes in customer mix; changes in pharmaceutical manufacturers' pricing and distribution policies; regulatory changes; changes in U.S. government policies; failure to integrate the businesses of AmeriSource and Bergen Brunswig successfully; failure to obtain and retain expected synergies from the merger of AmeriSource and Bergen Brunswig; and other economic, business, competitive, regulatory and/or operational factors affecting the business of AmerisourceBergen generally. More detailed information about these factors is set forth in AmerisourceBergen's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 2003. AmerisourceBergen is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward looking statements whether as a result of new information, future events or otherwise. |
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