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Cepheid Opts Not to Renew Contract with Premier

NEW YORK (GenomeWeb) – Cepheid said after the close of the market Wednesday that it has decided not to renew its group purchasing contract with Premier.

The Sunnyvale, Calif.-based molecular diagnostics firm said that its current contract with Premier will end on Sept. 30, 2014. It said that customers can order products through other group purchasing organizations with which the firm has contracted, including Amerinet, Baycare, HPA, MedAssets, Novation, ROi, and HealthTrust, or directly from the firm.

"Cepheid has always recognized and supported the value of group purchasing organizations and the role they play in driving the adoption of innovative technologies to improve patient care while also delivering attractive pricing for their members," Jim Post, Cepheid's executive vice president of North America Commercial Operations, said in a statement. "However, in this case, we were not able to agree on the appropriate level of fees paid by Cepheid relative to the value delivered by this particular contract."

Cepheid added that it expects no customer or revenue impact as a result of not renewing the contract.

Premier serves approximately 3,000 hospitals and 110,000 other non-acute healthcare providers in the US.

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