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WebMD Corp. (Nasdaq: HLTH) gained 17/32 to 7 7/8 Thursday after the Internet health care company ended a strategic alliance with pharmaceutical maker DuPont Co. (NYSE: DD) that called for DuPont to share a portion of the company's portal revenues.
The alliance, formed in March 1999, had been set to expire in 2004. Under terms of the agreement, DuPont was to have provided health care content to WebMD's consumer and physician portals and help WebMD create services and programs for the pharmaceutical industry in exchange for a share of WebMD's revenues.
Instead of the alliance, the companies said they are "exploring a new opportunity for a further collaboration in the food and nutrition area."
WebMD chief executive officer Martin J. Wygod said the move to end the DuPont deal reflects a restructuring plan, which calls for the company to examine its strategic relationships in light of their potential for profitability.
"While we look forward to focusing our joint efforts with DuPont in the food and nutrition area, we are very pleased to eliminate all revenue-sharing arrangements and to have enhanced our control over the development of services for the pharmaceutical industry," Wygod said.
WebMD links physicians, consumers and health care institutions through its Web network, and also provides services to the health care industry. Last year, the company merged with Healtheon, and until recently it was known as Healtheon/WebMD.
In September, the company announced a
restructuring aimed at saving US$250 million per year and
consolidating a set of acquisitions made earlier in the year.
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