dj Orthopedics signs Premier deal
BY EDITOR, NOVEMBER 24, 2003
On Tuesday of last week, dj Orthpopedis announced that the company has been awarded a three-year supply contract with Premier Purchasing Partners LP - a firm supplying group purchasing, procurement strategy and outsourcing and e-commerce services to approximately 1,600 U.S. hospitals. The contract is non-exclusive and DJ shares the Premier network with two other bracing suppliers. This is a major contract for DJO and comes on the heels of dj Ortho displacing DeRoyal earlier this year as the exclusive provider for Broadlane - another supply chain servicing group representing 572 acute care hospitals and 2,335 sub-acute health care facilities. These contracts generally apply to dj Ortho's lower margin ProCare distribution segment but they also leverage other areas of dj Ortho's business. While the Premier (and, earlier, the Broadlane) announcements are clearly positive news for DJO, we are not changing either our sales or earnings outlook for 2004.
