Cardinal Health chooses name for spinoff.
The new company will be dubbed CareFusion. According to Cardinal officials, the name reflects "the diverse blend of medical technologies" the firm will offer, including infusion and medication safety technologies, respiratory equipment, automated medical supply dispensing and infection prevention devices.
"CareFusion is a name that clearly communicates our ability to bring together technologies that improve patient safety and streamline the care process," said David Schlotterbeck, Cardinal Health's vice chairman and future CEO of CareFusion. Schlotterbeck predicted the spinoff would be an "immediate market leader in medication safety and infection prevention," and that the company would put "substantial emphasis" on innovation and clinical differentiation.
"Patient safety has always been a moral obligation for hospitals, but with payers creating additional financial incentives to reduce errors, improving safety has become an economic mandate," he added.
The new company, which will focus on systems for infusion, medication and supply dispensing, respiratory care, infection prevention, medical diagnostics and surgical procedures, will be headquartered in San Diego, Calif. Fiscal 2009 pro forma revenue for these businesses as a standalone entity is expected to be more than $4 billion, which would place the company among the world's largest medical technology firms. Building on existing product lines, of course, helps. Its primary product line will include Cardinal Health's Alaris IV infusion and Pyxis dispensing systems, AVEA and LTV series ventilators, V. Mueller surgical instruments and clinically differentiated offerings to reduce hospital-acquired infections through MedMined services and ChloraPrep preoperative skin preparation.
Cardinal Health will keep certain products made for the operating room, such as fluid management devices and surgical gloves.
CareFusion will have more than 13,000 employees worldwide. Cardinal Health has owned the CareFusion trademark since 2006 when the company acquired Care Fusion Inc., a maker of handheld barcode technology that provides positive patient identification for medication administration, lab specimen collection and blood transfusions.
The company expects to trade on the New York Stock Exchange under the ticker symbol CFN.
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|Title Annotation:||Top of the News|
|Publication:||Medical Product Outsourcing|
|Date:||Apr 1, 2009|
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