Beckman Coulter Expands Contract With Novation for Entire Menu of Access Immunoassay System Chemistries.

Business Editors & Health/Medical Writers

FULLERTON, Calif.--(BW HealthWire)--May 4, 2000

$45 Million Agreement Includes Recent FDA-Approved Access(R)

Hybritech(R) PSA and Access(R) Hybritech(R) free PSA Blood Tests

Beckman Coulter, Inc. (NYSE: BEC) announced Thursday that it has expanded its Access(R) Immunoassay System contract with Irving, Texas-based Novation, the largest supply cost-management company in health care.

The revised agreement - valued at approximately $45 million over two and a half years - significantly broadens Beckman Coulter's relationship with Novation, which also has contracts for Beckman Coulter hematology, clinical chemistry, automation, centrifugation, specific protein, electrophoresis and capillary zone electrophoresis (CZE), flow cytometry and other immunochemistry systems and reagents.

Novation is the supply company of VHA Inc. and the University HealthSystem Consortium, two national health care alliances. Health care organizations that purchase supplies through HealthCare Purchasing Partners International (HPPI) in Irving also have access to Novation contracts. All total, Novation serves more than 6,600 health-care organizations in the United States.

The new contract incorporates the entire test menu of Beckman Coulter's Access(R) system, including the Access(R) Hybritech(R) PSA and Access(R) Hybritech(R) free PSA blood tests. The assays recently became the first and only pairing of automated PSA tests approved by the Food and Drug Administration (FDA) as aids in the detection of prostate cancer. In addition, the Access(R) instrument can run approximately 40 assays for cardiac, cancer, anemia, thyroid, infectious disease, reproductive and other endocrine tests.

"We're pleased that Novation recognized the value that our Access(R) product line, particularly Access(R) Hybritech(R) PSA and Access(R) Hybritech(R) free PSA, can bring to VHA and UHC members," said Jeff McHugh, Beckman Coulter vice president, diagnostics commercial operations, the Americas. "This most recent agreement serves as yet another indicator of Novation's confidence in our ability to meet member needs."

According to Bob Benson, vice president of contract services for Novation, the agreement will provide additional savings for health care organizations that purchase supplies through Novation.

"We chose to expand our contract with Beckman Coulter based on the results of a public and competitive bid process," said Benson. "Beckman Coulter provides an extensive line of immunodiagnostic assays as well as other diagnostic solutions."

Novation manages more than $14 billion in annual purchases for more than 2,000 VHA and UHC members, and for 4,600 organizations that purchase supplies through HPPI. More information about Novation can be found at http://www.novationco.com.

Beckman Coulter is a leading provider of instrument systems and complementary products that simplify and automate processes in life science and clinical laboratories. The company's products are used throughout the world in all phases of the battle against disease, from pioneering medical research and drug discovery to diagnostic testing that aids in patient treatment. Annual sales for the company totaled $1.8 billion in 1999, with approximately half of this amount generated outside the United States. More information on the company is available at www.beckmancoulter.com.