To all, from BW:
BW0096 FEB 05,1997 8:29 PACIFIC 11:29 EASTERN
( BW)(SYNCOR-INTL-CORP)(SCOR) Syncor withdraws from discussions on
securing a sole source radiopharmaceutical contract with Premier
Business Editors and Medical/Pharmaceutical Writers
CHATSWORTH, Calif.--(BW HealthWire)--Feb. 5, 1997--Syncor
International Corp. (NASDAQ:SCOR) Wednesday announced it received
notification from Premier of its decision to cancel a previous
agreement for the distribution of radiopharmaceuticals to the former
AmHS members, effective March 31, 1997.
The previous contracts with Sun Health had already expired.
Based on this notification, it appears that Premier has selected a
different radiopharmaceutical supplier to provide services to its
members. Syncor had provided radiopharmaceutical services for AmHS,
Sun Health and Quorum, prior to their merger with Premier in 1996.
"Over the past eight months, Syncor has tried to define a
relationship with Premier that would allow us to sustain a
profitable business relationship with this newly formed national
account," said Robert Funari, president and chief executive officer.
"We remain committed to our business principles of demonstrating
innovative service leadership in radiopharmacy and providing a broad
range of valuable services to our customers. Syncor is not willing
to compete solely on the basis of product/price in order to win the
contract, and as a result, we have withdrawn from any further
discussions at this time with Premier on this award."
Syncor continues to seek mutually beneficial partnerships with
all large healthcare purchasing groups, as recently demonstrated
with the signing of a five year $270 million sole source national
contract with VHA Inc. early last month. Syncor continues to
maintain strategic alliances with major healthcare providers and
services on a national basis including Amerinet, Columbia/HCA, TENET
and Health Services Corp. of America (HSCA). The value that Syncor
provides to national healthcare groups includes a comprehensive and
fully integrated geographic network of radiopharmacies, the Secure
Safety System, the Service Difference Guarantee and an expanding set
of information technology capabilities for nuclear medicine
departments.
The annual value of the Syncor contracts with the former
individual Premier Group members is estimated to be in the range of
$60 million to $65 million annually. Syncor believes it will
continue to service many of the existing Premier members despite
Premier's apparent change in service providers. It is difficult to
quantify the financial impact that the loss of this contract will
have on Syncor. The company estimates that the potential impact in
1997 could be in the range of $5 million to $10 million for revenue
and $1 million to $2 million for pre-tax profits.
Syncor has initiated actions to minimize any potential impact on
its near-term financial results by continuing to provide service to
those Premier members who value the quality services that Syncor
provides to their organization. Syncor will continue to seek
mutually beneficial business relationships will all manufacturers of
radiopharmaceuticals and will remain focused on improving the
profitability of all its radiopharmacies. At the same time, there
will be an acceleration of effort to broaden and diversify the
business through new business opportunities.
The statements made in this news release contain certain
forward-looking statements that involve a number of risks and
uncertainties. Actual events or results may differ from the
company's expectations.
Syncor International operates an expanding network of 121
domestic and nine international nuclear pharmacy service centers.
The company compounds and dispenses patient specific unit dose
radiopharmaceutical prescriptions, as well as distributing bulk
radiopharmaceutical products, for use in diagnostic imaging and
provides a complete range of advanced pharmacy services. Syncor
services more than 7,000 customers and is the only national pharmacy
network of its kind that provides a combination of diagnostic and
information services to hospitals and alternative site markets.
--30--LES/la* TJM/la
CONTACT: Syncor International Corp., Chatsworth
Michael E. Mikity, 818/717-4610
Mary L. Meusborn, 818/717-4643
Investor Web site: WWW.STOCKPROFILES.COM/SCOR
News On Demand: 800/546-8172 |
