VALLEY FORGE, Pa.--(BUSINESS WIRE)--June 16,
2005--AmerisourceBergen Corporation (NYSE:ABC) today announced that it
has signed a definitive agreement to sell substantially all of the
operating assets of its Bridge Medical subsidiary to Cerner Corp.
(NASDAQ:CERN) for approximately $11 million. The agreement also
provides for contingent payments based on achievement of performance
targets through January 1, 2006. Under the terms of the agreement,
AmerisourceBergen will be able to work with Cerner to continue to make
available Bridge Medical products as part of AmerisourceBergen's broad
suite of patient-safety solutions.
"We are excited about Cerner's ability to expand the availability
of Bridge Medical's patient safety application in the healthcare
marketplace," said John Palumbo, Senior Vice President, Healthcare
Sales and Marketing of AmerisourceBergen. "AmerisourceBergen remains
focused on providing a broad array of clinical and patient safety
solutions to our customers."
Named the Best in KLAS for medication administration in a
September 2004 Bedside Study, Bridge Medical's barcode-enabled
point-of-care system combines medication verification with laboratory
specimen identification. The solution employs bar-code scanning,
clinical knowledge bases, and wireless networking and integration
capabilities to alert clinicians of potential medication
administration and collection errors at the bedside.
The sale is expected to close in July. For its third fiscal
quarter ending June 30, 2005, AmerisourceBergen will record an
estimated after tax loss of $5 million to $6 million as Discontinued
Operations related to Bridge Medical. Of this estimate, approximately
$4 million will relate to the loss on the sale of the Bridge assets.
The Company's expectations for fiscal 2005 and fiscal 2006
financial performance remain unchanged. AmerisourceBergen continues to
expect operating revenue in fiscal year 2005 to be about $49 billion,
and diluted earnings per share from continuing operations before the
cumulative effect of an accounting change for fiscal 2005 of between
$3.10 and $3.50 on a GAAP basis. The Company also continues to
estimate diluted earnings per share from continuing operations in
fiscal 2006 to be between $3.60 and $4.40, also on a GAAP basis. The
bottom of the range reflects pharmaceutical market growth in the high
single digits and the full-year impact of fiscal 2005 capital
deployment initiatives. The top of the range depends on
AmerisourceBergen's ability to improve our pharmaceutical distribution
operating margin, expected to be in the 100 to 110 basis points range
in fiscal 2005, by 30 basis points through margin enhancement
activities.
About AmerisourceBergen
AmerisourceBergen(R) (NYSE:ABC) is one of the largest
pharmaceutical services companies in the United States. Servicing both
pharmaceutical manufacturers and healthcare providers in the
pharmaceutical supply channel, the Company provides drug distribution
and related services designed to reduce costs and improve patient
outcomes. AmerisourceBergen's service solutions range from pharmacy
automation, bedside medication safety systems, and pharmaceutical
packaging to pharmacy services for skilled nursing and assisted living
facilities, reimbursement and pharmaceutical consulting services, and
physician education. With more than $48 billion in operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 14,000 people. AmerisourceBergen is ranked #23 on the
Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements
are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results.
The following factors, among others, could cause actual results to
differ materially from those described in any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies or practices; regulatory changes; changes in U.S. government
policies (including changes in government policies pertaining to drug
reimbursement); changes in market interest rates; and other economic,
business, competitive, regulatory and/or operational factors affecting
the business of AmerisourceBergen generally.
More detailed information about these and other factors is set
forth in AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal 2004.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation