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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
March 26, 1996
Mallinckrodt Group Inc.
(Exact name of registrant as specified in its charter)
New York 1-483 36-1263901
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
7733 Forsyth Boulevard, St. Louis, MO 63105-1820
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, (314)854-5200
including area code
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Item 5. Other Events
A press release was issued March 26, 1996. The relevant portion of the text of
that release was as follows:
PREMIER ANNOUNCES BLOCKBUSTER DEALS WITH MALLINCKRODT AND BERLEX FOR CONTRAST
MEDIA
CHARLOTTE, N.C./SAN DIEGO, Ca./WESTCHESTER, Il./ST. LOUIS, Mo., March 26, 1996
- -- Premier, Inc., the nation's newest and largest healthcare alliance,
announced today unprecedented "signature" deals for the purchase of contrast
imaging products with Mallinckrodt Group Inc. (NYSE:MKG), a leading
manufacturer of contrast media and other medical devices, and Berlex
Laboratories, Inc., the market leader in MRI contrast media.
Alan Weinstein, chairman of Purchasing Partners, a related company of the
newly named Premier, said the five-year agreement will allow participating
hospitals and healthcare systems in the new Premier's purchasing program to
realize significantly improved value, with some hospitals and healthcare systems
saving as much as 30 percent OVER current costs for contrast media and as much
as 15 percent OVER current costs for MRI products.
"Never before in the industry has this kind of blockbuster deal been
presented," said Weinstein. "This creative solution to offer a total product
line is a major step forward in providing exceptional value and leading edge
technology for our owners and affiliates.
"This is the kind of creative strategic thinking that allows top-line
manufacturers to create product offerings for the changing face of healthcare
delivery. We will provide our owners and affiliates with excellent value."
Savings through the contrast media agreements and a newly announced medical
imaging film agreement already represent combined savings of at least 20 percent
of the projected $500 million, first-year savings for participants in the new
Premier's group purchasing program. Actual expenditures by Premier facilities
for imaging film and contrast media represent only 4 percent of the total
purchasing volume of the alliance.
C. Ray Holman, chairman and CEO of Mallinckrodt Group, said, "As one of the
first signature business partners of Premier, we are pleased to bring high
quality, cost-effective contrast media to its membership. We anticipate a
long-term partnership with Premier that will transcend the customary vendor-
buyer relationship. Our goal is to provide Premier hospitals and healthcare
systems with products and services to reduce their costs by improving the
delivery of healthcare."
Jorge Engel, president of Berlex Laboratories, said, "As the leader in MRI
contrast media, Berlex is very excited about our new venture with Premier. We
are looking forward to providing Premier members with the exceptional value
associated with Berlex MRI products and services. We anticipate a long-term
relationship with Premier that will be built on trust and a commitment from all
parties to best serve our common customers."
"We were convinced going into the merger of AmHS, Premier and SunHealth
that there were additional savings out there if we came together," said
Weinstein. "This proves we were right. This is only the first of the signature
deals we will bring to our membership."
Premier Purchasing Partners received contrast media proposals from
competitive manufacturers which were subsequently reviewed by a task force
comprising hospital staff of purchasing and materials executives, radiology
administrative directors and radiologists. The task force made recommendations
to an oversight committee at the alliance's March 14-16 Governance Education
Conference in Orlando where the recommendations were accepted.
"Critical to the process of choosing our business partners is the
participation of owner and affiliate hospital staff representing many
disciplines," said Weinstein. "These groups can be proud of their work to
choose quality products for the best price possible for all Premier hospitals
and healthcare systems."
Mallinckrodt Group Inc., headquartered in St. Louis, Missouri, had fiscal
1995 net sales of more than $2.2 billion. Through its technology-based
businesses, it provides more than 2,000 human and animal health and specialty
chemical products in more than 100 countries.
Berlex Laboratories, Inc., headquartered in Wayne, New Jersey, employs
1,400 people, with 480 of them dedicated to research and development. With more
than $500 million in sales for 1995, Berlex is committed to bringing to market
beneficial preventive, diagnostic, and therapeutic medicines in the fields of
Diagnostic Imaging, Female Healthcare and Life-Threatening and Disabling
Diseases.
The recent merger of American Healthcare Systems, Premier Healthcare
Alliance, and The SunHealth Alliance, creates the largest voluntary healthcare
alliance covering all 50 states. With offices in Charlotte, Chicago, San Diego
and Washington, D.C., the new Premier includes more than 240 owner systems that
own or operate 650 institutions as well as another 1,000 affiliated hospitals.
Annual group purchasing volume is projected at $10 billion. Additional savings
to members' supply purchases is projected to be $500 million each year.
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MALLINCKRODT GROUP INC.
ROGER A. KELLER
Vice President, Secretary
and General Counsel
DATE: March 28, 1996
