Hologic, Inc. (NASDAQ: HOLX), a leading provider of specialized medical imaging equipment for women's health and digital radiographic applications, has signed a three year agreement with Novation for purchase and sale of Hologic's digital radiographic systems. The agreement takes effect January 15, 2002 and runs through December 31, 2004, with two one-year, renewal options at Novation's discretion. The agreement will cover purchase of Hologic's EPEX™ and RADEX™ direct-to-digital systems for general radiographic applications, and also designates Hologic as one of only two providers of digital chest x-ray systems.
Novation is one of the largest supply chain management companies in healthcare, managing more than $17 billion in annual purchases for 2,300 VHA Inc. and University HealthSystem Consortium (UHC) members and their affiliates. VHA is a nationwide network of over 2,200 community-owned healthcare organizations and their physicians. UHC is an alliance of 87 academic medical centers and 102 associate members.
"This new agreement will provide VHA and UHC members with significant value," says Bob Benson, Novation vice president, contract and program services. "Member input indicated that Hologic products have broad acceptance in the imaging marketplace. Through our comprehensive competitive bid process, Hologic provided the best combination of product quality and value which earned this award."
Award of the contract to Hologic was based on results of an extensive product evaluation and competitive bidding process focused on providing Novation's VHA and UHC members leading-edge, high-value technology at the most affordable prices.
According to Jack W. Cumming, CEO and President of Hologic, "We are excited by the opportunity to partner with Novation on their migration into digital radiology. Novation is widely recognized for its commitment to delivering high-quality products that maximize clinical performance, productivity and operational efficiencies for the members they serve. We look forward to offering Novation's 2,300 participating facilities the opportunity to realize the numerous benefits to be gained from utilization of our systems. We view Novation's selection of Hologic as further validation of the merits of our proprietary DirectRay® technology, powering the only true direct-to- digital systems on the market today."
Hologic, Inc. is dedicated to developing and delivering proprietary X-ray systems that incorporate direct-to-digital radiographic imaging technology for both women's health and general radiographic applications. Hologic's business divisions include Hologic Osteoporosis Assessment, a provider of premier bone densitometry systems, Hologic Systems, encompassing digital radiography systems, and the wholly-owned subsidiaries: Direct Radiography Corp., a manufacturer of state-of-the-art proprietary flat panel technology called DirectRay®; Lorad, specializing in innovative mammography and minimally invasive breast biopsy systems and Fluoroscan Imaging, a manufacturer of low intensity, real time X-ray imaging devices.
For more information, please visit http://www.hologic.com/. About Novation
Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national healthcare alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. Novation also serves more than 5,400 members of HealthCare Purchasing Partners International (HPPI), another group purchasing organization owned by VHA and UHC. The largest supply chain management company in healthcare, Novation manages more than $17 billion in annual purchases for VHA, UHC and HPPI members. For more information, go to http://www.novationco.com/.
VHA, also based in Irving, is a nationwide network of more than 2,200 leading community- owned healthcare organizations and their physicians. It comprises 26% of the nation's community hospitals. For more information, contact http://www.vha.com/. UHC, based in Oak Brook, Ill., and representing 76% of the academic medical centers in the United States, is an alliance of 87 academic medical centers and 102 associate members. For more information, contact http://www.uhc.edu/. HPPI, an Irving, Texas-based group purchasing organization that manages more than $1 billion in annual purchases, markets its services to organizations that do not belong to VHA or UHC. For more information, contact http://www.hppigpo.com/.
Forward Looking Disclaimer
This News Release contains forward-looking information that involves risks and uncertainties, including statements about Hologic's and Novation's plans, objectives, expectations and intentions. Such statements include, without limitation, statements regarding the anticipated benefits from Hologic's agreement with Novation. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to materially differ include, without limitation, Hologic's and Novation's limited experience in working together; Novation's participating hospitals may choose not to purchase Hologic's products; Hologic's continuing losses and ability to fund those losses as well as other working capital requirements; Hologic's ability to predict accurately the demand for its products and to develop strategies to address its markets successfully; uncertainties inherent in the development of new products and the enhancement of existing products, including technical and regulatory risks, cost overruns and delays; the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; the early stage of market development for digital X-ray products; risks relating to the Company's reliance on a single source of supply for some key components of its products; risks related to ongoing litigation; technical innovations that could render products marketed or under development by Hologic obsolete; competition; and reimbursement policies for the use of Hologic's products. Other factors that could adversely affect Hologic's business and prospects are described in Hologic's filings with the Securities and Exchange Commission. Hologic expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
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SOURCE: Hologic, Inc.
Contact: Glenn P. Muir, Executive Vice President and CFO, or Marianne Ritchie, Manager, Investor Relations, both of Hologic, Inc., +1-781-999-7300
Web site: http://www.hologic.com/