Bergen Brunswig Awarded Prime Vendor Agreement With U.S. Department Of Defense In Hawaii
The contract, which includes an initial 24-month period with three additional option terms of 24 months each, is expected to generate approximately $300 million to Bergen over its lifetime.
Bergen is the prime vendor for the DOD's Tricare Region Six in Texas, Oklahoma, Arkansas and Louisiana; and Tricare Region Five in Illinois, Ohio, Kentucky and Michigan. In 1999, Bergen was also awarded prime vendor contracts for Tricare Region Two, covering Virginia and North Carolina; and Tricare Region Four, covering Alabama, Mississippi and the Florida Panhandle.
"This selection reflects Bergen's recognized commitment to service throughout the regions they currently supply for the Department of Defense," said Mike Fowler, contracting officer for the DOD's Defense Supply Center Philadelphia. "We have great confidence that their responsiveness and excellent customer service will continue to satisfy the unique needs of our men and women in uniform."
Noted Doug Swanson, president, health systems division, for Bergen Brunswig Drug Company, "We are delighted that the Department of Defense is expanding its relationship with Bergen. The Pacific Rim Award is incremental volume representing half of the total, and we are committed to providing them the same service excellence that earned us a renewal in Hawaii."
Bergen Brunswig Corporation, headquartered in Orange County, California, is a leading supplier of pharmaceuticals and specialty healthcare products, as well as information management solutions and consulting services. Bergen's customers include the nation's healthcare providers (hospitals, nursing homes and physicians), drug stores, manufacturers and patients. Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum.
Except for historical information, all other information set forth in this press release, such as earnings forecasts and earnings rate projections, consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate," "believe," "think, "continue" or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99(a) to the Company's Annual Report on Form 10-K for the year ended September 30, 2000 and in other reports and exhibits filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, the costs and difficulties related to the integration of acquired businesses, the loss or disruption of one or more key customer or supplier relationships, changes in the distribution outsourcing pattern for pharmaceutical products and/or services, the ability to obtain general financing or financing rates that would be compatible with the Company's business operations, and the costs and other effects of governmental regulation and legal and administrative proceedings. The Company assumes no obligation to update the information in the release.
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