Curative to buy Millennium Health. Wound-care provider Curative Health Services said last week that it will pay $37.3 million to acquire Millennium Health, Santa Clara, Calif., a specialty pharmaceutical distributor. The deal is expected to close within 30 days. Hauppauge, N.Y.-based Curative will pay $32.3 million in cash and assume $5 million in debt. Millennium, also known as eBioCare.com, will keep its current management and operate as a subsidiary of Curative.
Strong pulse for stent market. Thanks in part to graying baby boomers, the U.S. coronary stent market is expected to grow 5.4% to $1.8 billion in revenue by 2006, from the current $1.4 billion, according to a healthcare market analysis released earlier this month by Frost & Sullivan, San Jose, Calif. Although the number of procedures requiring stents is increasing, the consulting firm cautioned that manufacturers would continue to face stiff competition from alternative therapies to surgery.
Hill-Rom planning more layoffs. Hill-Rom, Batesville, Ind., said earlier this month that it will lay off another 200 employees, bringing total layoffs since January to 400, or about 6% of its workforce. The bed manufacturer, which dominates the hospital market, also announced additional restructuring charges in the first quarter, bringing total charges announced since January to about $20 million, or 21 cents per share. The layoffs are expected to reduce the company's annual fixed expenses by as much as $30 million.
Drug-price measure watered down. Maine lawmakers are preparing to introduce legislation that would require minimal concessions from drug manufacturers compared with the state's controversial drug price-control law now before the 1st U.S. Circuit Court of Appeals in Boston. The new, less radical measures would require drugmakers to disclose competitors' prices when they sell products and to publicly report their marketing budgets and activities, according to published reports. Maine's price-control law, passed last May, would require drug manufacturers to sign rebate agreements with the state and would implement price controls if the rebates are ineffective at controlling spending. An injunction against the law is in effect while the appeals court hears an industry challenge.
Banner, Premier team up. Banner Health System, Phoenix, has aligned with the Premier hospital alliance, switching some of its 30 facilities from previous purchasing agreements with the VHA alliance, a Premier spokesman said. Banner officials said the decision to join Premier was made after an extensive review. Banner was created in 1999 when Lutheran Health Systems, Fargo, N.D., acquired Samaritan Health System, Phoenix.
Novation, suppliers reach terms. Novation, Irving, Texas, has awarded tentative three-year distribution agreements to eight suppliers that have committed to supporting Novation's online purchasing system. Financial terms of the agreements were not disclosed. Members of Novation's sponsoring alliances, VHA and University HealthSystem Consortium, will be asked to channel their purchases through one of three distributors in their region.
McKesson goes with one CEO. McKesson HBOC, San Francisco, has eliminated its dual chief executive officer positions in an effort to simplify the company's management structure. John Hammergren, 42, who shared the post with David Mahoney, will be sole CEO. Mahoney, 47, is leaving to pursue undisclosed opportunities. McKesson also will fold its Internet venture, iMcKesson, into its larger information technology business unit.