Stock Watch: Neoforma Calls Off Merger; Shares Rise, Inc. (Nasdaq: NEOF) was up 1/16 to 11 at Thursday’s opening after the company called off plans to merge with Eclipsys Corp. (Nasdaq: ECLP) and HealthVision Inc.

Instead of merging, the three companies said they decided on “a strategic commercial relationship that will include a co-marketing and distribution arrangement between and Healthvision.”

From the beginning, analysts questioned the logic behind the merger, saying it would slow Neoforma’s growth and dilute the value of its shares. Both Neoforma and Eclipsys have seen their shares plummet since the deal was announced March 30th.

The new agreement preserves Neoforma’s 10-year contract with Novation, a purchasing system owned by VHA, Inc. and University HealthSystem Consortium. Novation has a close relationship with Eclipsys. Under the agreement, VHA will get a 36 percent stake in Neoforma, while UHC will receive 9 percent.

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