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To: Bill Harmond who wrote (89414)	1/2/2000 2:01:00 PM
From: H James Morris	Respond to of 164687

Just that David Gardner is a lucky clown, and he misses 1/2 of what really goes on. Btw I thought this might interest you. Hopefully another B2B play coming out of San Diego. Gota go up to LA. >Medibuy.com 10120 Pacific Heights Suite 100 San Diego, CA 92121 (858) 587-7200 Web mavens have been saying the next big thing in cyberspace will be Internet companies that specialize in business-to-business transactions. In San Diego, that concept already has prompted the formation of Medibuy.com. "The health industry has an inefficient supply chain," says Dennis Murphy, who was brought in as chief executive of the start-up company founded in 1998 by Charlie Smith, Dr. Richard Cropper and Mike Chermak. "The Internet is a whole new way of doing business." Medibuy.com makes money by charging a fee for each transaction, ranging from a quarter of 1 percent to 10 percent. The Medibuy.com Web site operates as an online middleman for hospital purchasing agents, medical equipment vendors and other buyers and sellers in the $143 billion market for medical and surgical supplies. By one estimate, a typical hospital buys $50 million in supplies a year, filling up to 70 purchase orders a day. Products from hundreds of suppliers are sold and distributed by three big concerns: Cardinal Health, McKesson HBOC and Owens & Minor. It's a system that generates a mish-mash of paper and computerized records. Murphy contends that Medibuy.com offers a more efficient way for conducting such transactions. Medibuy.com's basic concept has expanded dramatically through an infusion of cash and expert advice from its three principal investment firms: Kleiner Perkins Caufield & Byers, Oak Investment Partners and Sequoia Capital. Financing has totaled about $50 million just in the past six months, and Medibuy.com's board of directors includes a partner from each firm. "Pedigree is a word we use in terms of who we want our investors to be and who we want our managers to be," says Murphy, who was previously president of McKesson Health Systems. He started his career 19 years ago as a salesman for American Hospital Supply. While anyone can access Medibuy.com's Web site, buyers and sellers must be registered before they can enter password-controlled areas for conducting transactions. One feature of the site enables buyers to issue an electronic RFP, or request for proposal, which invites sellers to submit bids for equipment and supplies. Another area features an online auction that enables hospitals to sell used equipment. The company grew rapidly in 1999 and now has 140 employees, most of whom work at its headquarters in San Diego. Its web site has more than 2,000 registered buyers. Murphy refused to discuss whether Medibuy.com plans an initial public stock offering. He also declined to talk about sales revenue, although he says: "We do like the idea of making money, despite what people say about Internet companies."