Bergen Brunswig Medical Corporation to be Primary Vendor for M.D. Anderson Cancer Center; Agreement Expands Presence Into Houston Area.
Located in Houston, Texas, M.D. Anderson is one of the nation's most respected and productive cancer centers, devoted exclusively to cancer patient care, research, education and prevention. It is one of only 31 Comprehensive Cancer Centers designated by the National Cancer Institute and one of the original three such centers named by the National Cancer Act of 1971.
The agreement, effective immediately, is expected to generate in excess of $50 million in new revenue for Bergen over the course of the contract. M.D. Anderson will close its existing warehouse, transferring all distribution duties to Bergen, and Bergen will open a new distribution facility in Houston by mid-October, easing the shift in responsibility while significantly expanding Bergen's presence into the Houston, San Antonio, Austin and South Texas markets.
The M.D. Anderson agreement builds on an existing partnership with Bergen Brunswig Drug Company and is being facilitated by Bergen's IntePlex team. As part of an integrated supply chain strategy, IntePlex will identify, prioritize and quantify opportunities for more efficient logistics management and cost reduction. In addition, Bergen will be providing daily stockless/Just-In-Time and low-unit-of-measure delivery of all medical-surgical supplies to M.D. Anderson's 40 patient care areas and 13 off-site clinical/research labs.
"We are extremely pleased to add med-surg distribution to Bergen's partnership with M.D. Anderson, one of the nation's most prestigious cancer treatment and research facilities," said Bill Elliott, president of Bergen Brunswig Medical Corporation and president of IntePlex. "By assuming M.D. Anderson's distribution responsibilities, enhancing service levels and establishing true operational efficiencies, we will help to reduce healthcare costs throughout their supply channel and contribute to the advancement of the exceptional treatment and research programs which have been the hallmark of M.D. Anderson since its establishment in 1941."
Philip Pettigrew, M.D. Anderson's executive director for materials services, commented, "Our decision to move forward with this integrated agreement with Bergen is based in great measure on the cost-savings, technologies and excellent service levels they are known for in the industry. We have every confidence in this relationship, which we believe will continue to maximize our operational efficiencies while taking us out of the distribution business so that we can focus on our patient commitment and research goals."
As part of the agreement, Bergen will enter into a partnership with Alko Enterprises Texas, Inc., a Historically Underutilized Business (HUB) as designated by the state of Texas. Bergen will subcontract to Alko at least 30% of the M.D. Anderson distribution volume. Alko currently has several prime and co-prime vendor relationships with some of the leading healthcare institutions in the Houston area.
"This unique partnership, dubbed the Genesis Distribution Program, supports M.D. Anderson's commitment to HUB participation," Elliott said. "It marks a unique partnership between a Fortune 200 company and a small business enterprise, and we appreciate the opportunity to build the program on behalf of M.D. Anderson."
Bergen Brunswig Corporation, a Fortune 200 company with annualized revenues of approximately $14 billion, is one of the nation's leading supply channel management companies. In addition to its diversified healthcare product offerings, the company offers innovative logistics management programs in pharmaceuticals and medical-surgical supplies to all healthcare venues. These programs are designed to help customers grow efficiently, improve cost- effectiveness and further support their focus on patient/consumer care.
Some of the information set forth in this press release (including without limitation the company's statements regarding goals for the remainder of the current fiscal year) constitutes forward-looking statements which are subject to uncertainties which could cause actual results to differ materially from those projected or implied. The most significant of such uncertainties are described in exhibit 99(a) to the company's annual report on form 10-K for the year ended September 30, 1997 and in other reports and exhibits filed with the Securities and Exchange Commission.
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CONTACT: Lisa Riordan Director, Investor Relations (800) 840-5131