Life-science and healthcare business-to-business solutions provider Chemdex Corp. (Nasdaq: CMDX) announced today that it has signed an agreement to acquire SpecialtyMD.com in an all-stock transaction worth approximately $115 million (US$).
SpecialtyMD.com is an online information, marketing and sales channel for specialist physicians and procurement professionals worldwide.
“SpecialtyMD.com’s technology aggregates complex content about specialized products in a one-stop online source,” said Ash Munshi, CEO of SpecialtyMD.com. “By joining forces with Chemdex, we will be able to expand our offering to a broad range of users who can access and benefit from enhanced product information.”
The deal is expected to close during the first quarter of 2000. Upon completion of the deal, Chemdex will issue 1,250,000 shares of stock in exchange for 100 percent of SpecialtyMD.com. As part of the deal, SpecialtyMD.com’s 25 employees — in areas such as software development, engineering and healthcare marketing — will join Chemdex.
Chemdex.com will use SpecialtyMD.com’s technology to enhance its e-commerce offerings. SpecialtyMD.com’s technology offers an interactive component for e-commerce procurement solutions. SpecialtyMD.com also features search and content offerings.
SpecialtyMD.com simplifies the buying process for physicians by offering comprehensive information, such as product specifications, clinical trial data and multimedia content, that helps buyers compare medical products and procedures.
Technology Will Be Integrated
Chemdex will integrate SpecialtyMD.com’s technology into its e-commerce platform. The first implementation will occur with ProMedix.com, a provider of specialty medical products. Chemdex has announced that it plans to acquire Promedix.com in a deal that is expected to close in the first quarter of 2000.
“SpecialtyMD.com’s technology enhances the buying experience and is a valuable complement to our scalable e-commerce platform and procurement application,” said David Perry, president and CEO of Chemdex. “This technology has enormous potential to deliver added value to markets beyond healthcare.”
Chemdex Partners With Tenet
In related news today, Chemdex announced that it is partnering with hospital operator Tenet Healthcare Corporation to create a new company that will provide business-to-business e-commerce solutions for the healthcare industry.
The new company, which is targeting the $143 billion domestic medical supplies market, has formed an alliance with IBM, which will provide implementation, integration and e-commerce services for the company’s customers and suppliers.
The goal is to streamline purchases and attract customers by reducing the cost of buying products.
“We recognize that by offering a vendor-neutral marketplace and electronic procurement solutions, we can reduce purchasing costs and increase efficiency throughout the supply chain,” said David C. Ricker, senior vice president of material resource management for Tenet Healthcare.