Coram Healthcare Announces Plans to Launch Online Pharmacy and Agreement with Leading Consumer Health Web Site
Online Pharmacy Will Build On The Company's Existing $80 Million Mail Order and Pharmacy Benefit Management Business
DENVER, May 17 /PRNewswire/ -- Coram Healthcare (NYSE: CRH - news) today announced that it will take Coram Prescription Services (CPS), its nearly $80 million mail order and pharmacy benefit management division, online in the third quarter of 1999, a plan which the company first announced on March 19. The Company has chosen Mediconsult.com, Inc. (Nasdaq: MCNS - news) to provide content and promotion for the new site. Under the agreement, Coram will be the exclusive prescription and over-the-counter (OTC) product provider to Mediconsult.com's visitor base. The Coram Online Pharmacy will be integrated into the Mediconsult.com web sites, providing visitors with a seamless interface to purchase their prescriptions and OTC products including vitamins.
The online pharmacy will focus on products for patients with specific medical conditions such as HIV/AIDS, Diabetes, Infertility, and Solid-Organ Transplant. With 20,000 existing mail order customers and access to over 8 million persons through current agreements with managed care organizations, Coram plans to grow online sales rapidly and effectively. The new business unit will take advantage of CPS' state of the art distribution facility in Orlando, Florida.
Dom Meffe Jr., president of CPS, stated, ''While online pharmacy startups are experimenting with their first mail-order prescriptions, we will utilize the same facilities and safety checks and balances that serve thousands of patients today. Our 20 years of experience in servicing patients in their homes will be a significant competitive advantage as we enter this market.''
''Our two key drivers in our effort to leverage web-enabled technology remain the same: enhance patient care and enhance our bottom line. Accordingly, the online pharmacy is expected to provide significant benefits to Coram's existing mail order pharmacy clients and pharmacy benefit management customers and members,'' explained Richard Smith, President and Chief Executive Officer of Coram Healthcare. ''We will provide information and support programs to help patients use their medications correctly, resulting in better health outcomes for our patients and lower costs for our clients. Industry reports estimate that United States industries lose $80 billion annually because of non-compliance with drug therapy, making this a significant opportunity. This is not only an economic issue, but, more importantly, a quality of patient care issue.''
From its inception, the Coram Online Pharmacy will have already solved certain major challenges facing other start ups in the online drug store field: namely, attracting a strong, repeat customer base and having existing relationships with many health insurers. Coram will also offer 90-day prescriptions to many patients, saving money for patients and their employers in comparison to the standard 30-day refills.
''We are already well-established with consumers and insurers and have the service and distribution capabilities to provide service and quality of care excellence.'' added Mr. Smith, ''With this strong base we can provide more service and offer greater convenience to our existing customers and expand rapidly into markets we currently do not reach.
''By focusing on specific conditions and products with strong margins and high repeat sales, the business can grow rapidly and profitably. Coram has excelled in providing a high level of service to its patients and will extend the same level of service commitment to the Web with high-touch, interactive tools and immediate connections to our experienced call center and clinical staff,'' continued Smith. ''Customer service and quality of care are the linchpins of our business, and we believe the Web is a natural technological tool to extend our service to a broader range of patients and health consumers.''
According to the National Association of Chain Drug Stores, the market for prescription drugs in 1998 was $100 billion; the OTC and vitamin markets increase the total to $160 billion. The combined market is expected to grow to $300 billion by 2003.
''According to the pharmaceutical research firm IMS, 75% of the prescription drug market treats patients with chronic conditions, and 47 percent of that market for refills alone,'' noted Mr. Meffe. ''The Internet is ideal for these kinds of purchases.''
''Mediconsult.com is the leading online consumer health site and we wanted to work with the industry leader. The Mediconsult.com site attracts over 2 million consumers every month and over 80% are patients with the chronic conditions we are targeting,'' says Meffe. ''We selected Mediconsult.com because of its large, highly qualified visitor base and their high-quality content and community services.''
''Coram is well known for caring and service excellence in all its lines of business. We are pleased to provide the Mediconsult.com community with access to high quality products and services from the leader in the home health care sector,'' said Ian Sutcliffe, President of Mediconsult.com. ''Coram and Mediconsult.com have a similar focus on patients with chronic conditions by providing responsive and trusted services. Our visitors are concerned about privacy and safety and Coram is a name they recognize and trust.''
Mediconsult.com is a leading provider of patient-oriented healthcare information and services on the World Wide Web. The Company's Web sites provide a trusted source of comprehensive and easy to understand medical information and are designed to empower consumers through increased education regarding medical conditions and treatment alternatives. The Company's Web site, mediconsult.com, has received awards from more than 30 independent organizations including Encyclopedia Britannica (one of the 76 ''Best of Web'' sites out of 125,000 reviewed), The Lancet (''An exceptionally well-designed, easy to navigate site brimming with health news and patient information''), and Popular Science (one of the ''50 Best of the Web'' for 1998). |
