Toronto Stock
Exchange Symbol: SXC
Systems Xcellence to provide InformedRx pharmacy benefit administration
services for two new clients
MILTON, Ontario February 1, 2005, Systems Xcellence
Inc., ("SXC" or the "Company") (TSX: SXC) a leading provider of healthcare
information technology solutions throughout the pharmaceutical supply chain,
today announced the sale of its InformedRx pharmacy benefit administration
services through its U.S. subsidiary, SXC Health Solutions, Inc., to a
regional Pharmacy Benefit Manager ("PBM") based in Massachusetts, and a
Managed Care Organization ("MCO") based in New York City. The contracts have
a combined value of approximately $800,000 over three years with significant
upside potential, and are expected to go-live during the second quarter of
2005. All figures are in U.S. dollars, unless otherwise noted.
"Building our base of InformedRx customers is a key component of our growth
strategy in the healthcare payer marketplace and will help to increase our
revenue earned from recurring sources," said Gordon S. Glenn, President and
CEO of SXC. "Our pipeline of opportunities continues to expand as InformedRx
addresses the key issues facing our payer clients, namely the need for
better drug price transparency, greater control over drug formulary plans,
and seamless and integrated access to the vast network of pharmacies located
across the U.S. Ultimately our ability to deliver these solutions allows our
customers to better manage and reduce the cost associated with the delivery
of prescription drug benefits to their health plan members."
The MCO and PBM will use InformedRx to design healthcare benefit plans for
its members, adjudicate prescription drug claims, manage reimbursement of
retail pharmacy network contracts, analyze drug utilization, and establish a
web portal to extend the point-of-contact with their members. In addition,
the PBM will use InformedRx to manage rebate contracts with pharmaceutical
manufacturers.
"These contracts demonstrate the broad appeal and flexibility of InformedRx
as the PBM is an established organization with more than 200,000 members
that has selected SXC to replace its incumbent provider, while the MCO is
looking to utilize our solutions in order to participate in the U.S.
government-sponsored Medicare Part D pharmacy benefit program," added Mr.
Glenn. "In the initial stages of our agreement with the PBM, we will provide
the transaction processing for a portion of their membership with an
opportunity to expand the scope of our agreement over time."
About InformedRx
InformedRx is a broad suite of à la carte pharmacy benefit administrative
services that provide a flexible and cost-effective alternative to
traditional pharmacy benefit management offerings typically employed by
managed care organizations. InformedRx is built around SXC's industry
leading pharmacy claims processing system, RxCLAIM® and features pricing on
a fee-for-service basis. RxCLAIM is a transaction processing system designed
to provide instant on-line adjudication of third party prescription drug
claims at the point of service, including trouble-free claims management and
cost-effective review, as well as payment and billing support and real-time
functionality for updating benefit, price, member, provider and drug
details.
About Systems Xcellence Inc.
Systems Xcellence (SXC) is headquartered in Milton, Ontario with offices and
processing centres in Lombard, Illinois, Warminster, Pennsylvania,
Scottsdale, Arizona and Victoria, British Columbia. Through its SXC Health
Solutions, Inc subsidiary, SXC is a leading provider of healthcare
information technology solutions and services to the U.S. healthcare
benefits management industry. The company's product offerings and solutions
combine a wide range of software applications, application service provider
(ASP) processing services and professional services, designed for many of
the largest organizations in the pharmaceutical supply chain, such as
pharmacy benefit managers, managed care organizations, independent, chain
and mail-order pharmacies and other healthcare intermediaries. SXC can be
found on the Internet at
www.sxc.com.
This press release contains forward-looking
statements based on current expectations. These forward-looking statements
entail various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking statements.
Risks and uncertainties about the Company's business are more fully
discussed in the Company's Annual Information Form.
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