Healthcare Industry News: Novation
News Release - February 21, 2006
Orthofix's BREG Division Awarded Three-Year Supply Contract from NovationHUNTERSVILLE, N.C.--(HSMN NewsFeed)--Feb. 21, 2006--Orthofix International N.V. (NASDAQ: OFIX ) announced today that its BREG Inc. division, a leading medical device company specializing in premium orthopedic, reconstructive and post-operative products, has entered into a second dual-source three-year supply agreement with Novation, the health care contracting services company of VHA Inc. and University HealthSystem Consortium (UHC).
Under the terms of the agreement with Novation, BREG will supply its comprehensive line of functional, OA, patellofemoral, upper and lower extremity, and postoperative braces to VHA- and UHC-member hospitals, which use Novation contracts to purchase more than $26 billion in supplies annually. This agreement also extends to health care organizations that purchase supplies through HealthCare Purchasing Partners International (HPPI), a group purchasing organization co-owned by VHA and UHC.
"BREG is committed to delivering the most advanced solutions to the market," said Brad Mason, president of BREG. "This additional three-year agreement with Novation bears strong testimony to our commitment to quality, innovation and, most importantly, our customers. We are very pleased with the opportunities afforded by this mutually beneficial agreement, and we look forward to continuing to serve the diverse needs of VHA's and UHC's valued member hospitals."
Novation awarded the contract to BREG through its competitive bid process. The decision was based on extensive member-driven criteria, which measures both financial and non-financial factors, including product line breadth, clinical acceptability, new product development, and service capabilities. The second three-year supply agreement will become effective April 1, 2006. The first three-year supply agreement between Novation and BREG, involving BREG's Polar CareŽ cold therapy product line, went into effect Jan. 1, 2006.
"This contract represents a significant step forward for BREG as the company continues to focus on expanding its domestic market share," said Charles Federico, group president and CEO of Orthofix. "BREG has long been a leader in bracing, and this new agreement will help to further strengthen its position in the marketplace."
About BREG, Inc.
Since 1989, BREG, Inc., a division of Orthofix International N.V. (NASDAQ: OFIX ), has pioneered premium orthopedic, reconstructive and postoperative products. With a commitment to customer-driven innovation, BREG has established itself as a leader in the industry by continually delivering world-class solutions that address the critical needs of its customers. Based in Vista, Calif., BREG's products are currently distributed through a worldwide network of more than 100 distributors in 36 countries. The company's extensive product offerings--including postoperative pain management products, CPM devices, and a full range of soft goods and functional knee braces--are designed to meet the changing needs of its customers worldwide. BREG also offers inventory management services and solutions to create overall practice management efficiencies for health care providers. For more information visit www.breg.com.
About Orthofix International, N.V.
Orthofix International N.V., a global diversified orthopedic products company, offers a broad line of minimally invasive surgical, and non-surgical products for the spine, reconstruction, and trauma market sectors that address the lifelong bone-and-joint health needs of patients of all ages, helping them achieve a more active and mobile lifestyle. Orthofix's products are widely distributed around the world to orthopedic surgeons and patients via Orthofix's sales representatives and its subsidiaries, including BREG, Inc., and via partnerships with other leading orthopedic product companies, such as Medtronic Sofamor Danek and Kendall Healthcare. In addition, Orthofix is collaborating in R&D partnerships with leading medical institutions such as the Orthopedic Research and Education Foundation, the Cleveland Clinic Foundation, Innovative Spinal Technologies and the National Osteoporosis Institute. For more information about Orthofix, please visit www.orthofix.com.
This news release contains certain forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements concerning the projections, financial condition, results of operations and businesses of Orthofix, and are based on management's current expectations and estimates and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Factors that could cause or contribute to such differences may include, but are not limited to, unanticipated expenditures, changing relationship with customers, suppliers and strategic partners, risks relating to the protection of intellectual property, changes to the reimbursement policies of third parties, changes to governmental regulation of medical devices, the impact of competitive products, changes to the competitive environment, the acceptance of new products in the market, conditions of the orthopedic industry and the economy and other factors described in the most recent report on Form 10-K and other periodic reports filed by Orthofix with the Securities and Exchange Commission.
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