Neoforma.com (Nasdaq: NEOF) gained 7/16 to 1 3/4 Monday after the company, which provides e-commerce services to the health care industry, won a contract from Medbuy Corp., the largest medical purchasing organization in Canada.
San Jose, California-based Neoforma becomes Medbuy Corp.’s exclusive provider of online purchasing services, as the companies begin a 10-year strategic relationship to work on a “comprehensive Internet solution” for the Canadian health care marketplace.
Medbuy is owned by 14 Canadian health care institutions and five additional members. Together, Medbuy’s hospitals purchase more than $300 million of hospital supplies each year. Medbuy represents more than 20 percent of the total Canadian health care market, negotiating contracts for operating room, medical imaging, and pharmaceutical services.
Neoforma and Medbuy’s Canadian Health Marketplace Corp. subsidiary will develop an e-marketplace offering product purchasing and online auctions.
Neoforma posted a net loss for the third quarter of $47.5 million, or 46 cents per share, compared with $59.6 million, or $1.02, in the same period a year earlier. Revenue for the period totaled $2.3 million.
Company shares, however, remain near a 52-week low, having fallen out of favor along with other e-commerce issues. In February, the stock set a 52-week high of 78 3/4.