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[Healtheon / WebMD Logo] [Quintiles Transnational Logo]
FOR IMMEDIATE RELEASE
CONTACTS:
HEALTHEON/WEBMD: QUINTILES TRANSNATIONAL CORP:
Investor Relations Investor Relations
Lew Belote Greg Connors
404 495 7602 919 998 2000
[email protected] [email protected]
Media Relations Media Relations
Dave Faupel Pat Grebe
404 897 2300 919 998 2031
[email protected] [email protected]
HEALTHEON/WEBMD COMPLETES ACQUISITION OF QUINTILES' ENVOY UNIT
HEALTHEON/WEBMD ENHANCES NETWORK WITH GREATER PAYOR, PROVIDER AND PATIENT
CONNECTIVITY THROUGH ENVOY RELATIONSHIPS
QUINTILES AND HEALTHEON/WEBMD TO ACCELERATE CO-DEVELOPMENT OF INTEGRATED SUITE
OF WEB-ENABLED PRODUCTS TO IMPROVE DRUG DEVELOPMENT AND COMMERCIALIZATION
ATLANTA and RESEARCH TRIANGLE PARK, N.C. - May 30, 2000 - Healtheon/WebMD
Corporation (Nasdaq: HLTH) and Quintiles Transnational Corp. (Nasdaq: QTRN)
today announced completion of Healtheon/WebMD's acquisition of Quintiles'
electronic data interchange unit, ENVOY Corporation, under the financial terms
originally announced on Jan. 24, 2000.
In 1999, ENVOY's network processed more than 1.4 billion medical, pharmacy and
dental transactions involving about 250,000 physicians, 35,000 pharmacies,
47,000 dentists, 4,500 hospitals and 900 payors. With the acquisition of ENVOY,
Healtheon/WebMD will process more than 2 billion transactions a year for U.S.
healthcare customers.
As announced on Jan. 24, 2000, Healtheon/WebMD acquired ENVOY from Quintiles in
exchange for 35 million shares of Healtheon/WebMD stock and $400 million in
cash. Quintiles has issued Healtheon/WebMD a warrant to purchase up to 10
million shares of Quintiles common stock at $40 per share, exercisable for four
years. The acquisition was treated as a purchase transaction for accounting
purposes.
Also as part of the agreement, Quintiles and Healtheon/WebMD are jointly
developing an integrated series of Web-based products to vastly improve the
efficiency of drug development and commercialization; and Quintiles is
Healtheon/WebMD's exclusive licensee for creating healthcare informatics
products.
Immediately upon the closing of the acquisition, Healtheon/WebMD and ENVOY are
executing the integration of payors with connectivity to ENVOY into
Healtheon/WebMD's professional portal, WebMD Practice(SM). The next generation
of WebMD Practice will bring physician
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practice managers and other administrators improved usability and the ability to
perform real-time transactions with a significantly expanded group of insurers.
Planned integration initiatives also include the consolidation of
Healtheon/WebMD's existing EDI operations into ENVOY, which will be led by ENVOY
Chief Executive Officer Jim Kever, and Fred C. Goad, chairman of ENVOY.
"The completion of our acquisition of ENVOY significantly enhances our network
with greater payor connectivity, accelerating our goal of using the Internet to
provide better access to information for all participants in the healthcare
industry including doctors, consumers and healthcare institutions," said Jeff
Arnold, chief executive officer of Healtheon/WebMD. "We will immediately execute
the plan for the complete integration of ENVOY, which we began preparing in
February. We're pleased that the senior management team of ENVOY is remaining
with the company to run the ENVOY operations from Nashville, where the company
is based."
Dennis Gillings, chairman and chief executive officer of Quintiles
Transnational, said: "I believe completion of this deal marks the beginning of a
new era of vastly improved healthcare transaction and information delivery to
all stakeholders in the system - patients, doctors, payors and pharmaceutical
companies. Teams from Quintiles and Healtheon/WebMD have been working since
February to plan a new Web-based system to improve the efficiency of drug
development and bring new medicines to patients sooner. With the closing of this
deal, those efforts will now dramatically accelerate."
Gillings will be appointed to the Healtheon/WebMD Board of Directors in the near
future.
ABOUT HEALTHEON/WEBMD
Healtheon/WebMD (Nasdaq: HLTH) is the first end-to-end Internet healthcare
company connecting physicians and consumers to the entire healthcare industry.
Healtheon/WebMD is using the Internet to facilitate a new system for the
delivery of healthcare, resulting in a single, secure environment for all
communications and transactions that will enable a more efficient and cost
effective healthcare system. Healtheon/WebMD has its corporate headquarters in
Atlanta and its technology headquarters in Silicon Valley. For more information
visit http://www.webmd.com.
Other than historical information set forth herein, information in this press
release contains "forward-looking statements." These statements involve risks
and uncertainties that could cause actual results to differ materially,
including without limitation, the ability of Healtheon/WebMD's services to
decrease costs and improve patient care, Healtheon/WebMD's limited operating
history, continued growth in the use of the Internet, acceptance of the Internet
as a secure medium over which to conduct transactions, the performance of
Healtheon/WebMD and risks associated with its business, the volatility of the
market for Healtheon/WebMD stock, actual operating performance, the ability to
operate successfully in various strategic alliances, the ability to maintain
large client contracts or to enter into new contracts, and the competition from
other participants in the healthcare industry. Additional factors that could
cause actual results to differ materially are discussed in each of
Healtheon/WebMD's recent filings with the Securities and Exchange Commission,
including but not limited to S-1 and S-4 Registration Statements, Annual Reports
on Form 10-K, Form 8-Ks, and other periodic reports, including Form 10-Qs.
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ABOUT QUINTILES TRANSNATIONAL CORP.
Quintiles Transnational Corp. improves healthcare by bringing new medicines to
patients faster and providing knowledge-rich medical and drug data to advance
the quality and cost effectiveness of healthcare. Quintiles is the global market
leader in helping pharmaceutical, biotechnology and medical device companies
market and sell their products; and the company provides insightful market
research solutions and strategic analyses to support healthcare decisions.
Quintiles Transnational is headquartered near Research Triangle Park, North
Carolina, and has about 20,000 employees in 31 countries. Quintiles is a member
of the S&P 500, Fortune 1000 and Nasdaq 100.
For more information visit www.quintiles.com.
Information in this press release contains "forward-looking statements" about a
number of matters, including, without limitation, our Internet strategy, the
ability to maintain large client contracts or to enter into new contracts,
overall industry conditions, the ability to create data products from data
licensed to us, the ability to operate successfully in new lines of business
and, with respect to our strategic alliance with Healtheon/WebMD, risks
associated with Healtheon/WebMD's business as set forth in its filings with the
Securities and Exchange Commission. Additional factors that could cause actual
results to differ materially are discussed in the company's recent filings with
the Securities and Exchange Commission, including but not limited to its S-3 and
S-4 Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks, and
its other periodic reports, including Form 10-Qs.
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