-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WCwgXnNPUSPni1YqBbNIFwjvdXYmxPy3CrUjg6Pj6OGGyBZSeOGP2D5xo2khrcHV hZqjGJdFz1qWEd2twVjb7g== 0000950144-00-002984.txt : 20000309 0000950144-00-002984.hdr.sgml : 20000309 ACCESSION NUMBER: 0000950144-00-002984 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000308 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: MEDICAL MANAGER CORP/NEW/ CENTRAL INDEX KEY: 0000850436 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 222975182 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 000-17822 FILM NUMBER: 563119 BUSINESS ADDRESS: STREET 1: 669 RIVER DRIVE STREET 2: RIVER DRIVE CENTER II CITY: ELMWOOD PARK STATE: NJ ZIP: 07407-1361 BUSINESS PHONE: 2017033400 MAIL ADDRESS: STREET 1: 669 RIVER DRIVE STREET 2: RIVER DRIVE CENTER II CITY: ELMWOOD PARK STATE: NJ ZIP: 07407-1361 FORMER COMPANY: FORMER CONFORMED NAME: MEDICAL MANAGER CORP /NEW/ DATE OF NAME CHANGE: 19990723 FORMER COMPANY: FORMER CONFORMED NAME: SYNETIC INC DATE OF NAME CHANGE: 19920703 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HEALTHEON WEBMD CORP CENTRAL INDEX KEY: 0001088917 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 943236644 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 400 LENOX BUILDING STREET 2: 3399 PEACHTREE ROAD NE CITY: ATLANTA STATE: GA ZIP: 30326 BUSINESS PHONE: 4044957600 MAIL ADDRESS: STREET 1: 400 LENOX BUILDING STREET 2: 3399 PEACHTREE ROAD NE CITY: ATLANTA STATE: GA ZIP: 30326 FORMER COMPANY: FORMER CONFORMED NAME: HEALTHEON CORP /DE/ DATE OF NAME CHANGE: 19991210 425 1 MEDICAL MANAGER CORP. / HEALTHEON/WEBMD CORP. 1 Filed by: Healtheon/WebMD Corporation Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Medical Manager Corporation Commission File No.: 000-17822 THIS COMMUNICATION IS FILED PURSUANT TO RULES 165 AND 425 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. INVESTORS ARE URGED TO READ THE VARIOUS FILINGS OF HEALTHEON/WEBMD CORPORATION AND MEDICAL MANAGER CORPORATION WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE PROXY STATEMENT/REGISTRATION STATEMENT THAT IS REQUIRED TO BE FILED WITH RESPECT TO THE TRANSACTION DESCRIBED BELOW PRIOR TO THE VOTE OF THE SHAREHOLDERS OF MEDICAL MANAGER CORPORATION AND HEALTHEON/WEBMD CORPORATION WITH RESPECT TO THE MERGER. 2 This communication is filed pursuant to Rules 165 and 425 promulgated under the Securities Act of 1933, as amended. Investors are urged to read the various filings of Healtheon/WebMD Corporation, OnHealth Network Company, Medical Manager Corporation and CareInsite, Inc. that have been filed with the Securities and Exchange Commission including the proxy statement/registration statements that are required to be filed with respect to the transactions described in the following presentation prior to the vote of the shareholders of the respective companies and the issuance of the common stock of Healtheon/WebMD Corporation in the mergers. 3 [PHOTO] [Careinsite Logo] [The Medical Manager Logo(R)] [PHOTO] [PHOTO] [onhealth.com Logo] Connecting the Global Healthcare [PHOTO] [PHOTO] Marketplace [Healtheon(TM)/WebMD(SM) LOGO] 4 MISSION [Healtheon/WebMD Logo] [Globe] Connecting and empowering individuals for more efficient, affordable and better healthcare World-Class Partnerships Superior Technology and Connectivity Comprehensive, Credible Content Leading E-Health Brand Awareness Extensive/ Exclusive Distribution 5 OUR ECONOMY'S LARGEST SECTOR -- SIGNIFICANT IMPROVEMENT OPPORTUNITIES [Chart showing projected growth from $1.2 trillion in 1999 to $1.6 trillion in 2004] - $280+ B administrative waste and redundant/ unnecessary procedures - 30+ B transactions/ year - mainly paper-based - Fragmentation - Information not readily available Source: HFCA 6 MUCH PRESSURE TO CHANGE HEALTHCARE [Photo] [Photo] PROVIDERS CONSUMERS Desiring less Demanding better administrative service, more burden, greater information, and autonomy, faster greater convenience payments, and greater incomes [Photo] HEALTHCARE INDUSTRY Striving to reduce costs and enhance provider and patient experience 7 THE SOLUTION... [Healtheon(TM)/WebMD(SM) Logo] [arrow pointing down] www.webmd.com [arrow pointing up] [arrow pointing up] [arrow pointing up] [Careinsite Logo] [The Medical Manager(R) Logo] [onhealth.com Logo] 8 OUR CUSTOMERS... [WebMD Web Page] 9 BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES Provider Portal [Screen Shot] Aggregate physicians and consumers [Healtheon(TM) WebMD(SM) Logo] [bi-directional arrows connect this logo to the items in the left hand column] Consumer Portal [Screen Shot] www.webmd.com 10 BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES Form leading partner- ships that deliver value [Artwork] Provider Portal - Connectivity Payors [Screen Shot] - Transaction facilitation - Information - Applications Labs Consumer Portal [Healtheon(TM)/WebMD(SM) Logo] [Screen Shot] [bi-directional arrows Pharmacies connect this Logo to the items in the left hand column IDNs/ and right hand column] Hospitals www.webmd.com Other Partners (e.g., e- commerce)
11 BUSINESS MODEL SUMMARY: DIVERSE RECURRING REVENUES Provider Portal Monetize through [Screen Shot] - Transactions - Subscriptions Consumer Portal - Advertising/sponsorships [Screen Shot] - E-commerce www.webmd.com [Healtheon(TM)/WebMD(SM) Logo] Payors [bi-directional arrows Labs connect this Logo to Pharmacies the items in the left IDNs / Hospitals hand column and the Other Partners right hand column] [e.g., e-commerce] 12 FORRESTER FORECASTS THAT E-HEALTH WILL REACH $370 BILLION BY 2004 $ Billions
Forecast 1999 6.4 2000 16.0 2001 37.0 2002 87.0 2003 190.0 2004 370.0
Represents less than 25% of 2004 healthcare expenditures Source: Forrester Research, Inc. (12/99) 13 FORRESTER FORECASTS THAT E-HEALTH WILL REACH $370 BILLION BY 2004 $ Billions
Forecast 1999 6.0 2000 15.0 2001 35.0 2002 81.0 2003 178.0 2004 348.0
B-2-B e-health is expected to reach $348 B by 2004 - - Administrative/ clinical transactions: $224 B - - Drugs, supplies: $124 B Source: Forrester Research, Inc. (12/99) 14 FORRESTER FORECASTS THAT E-HEALTH WILL REACH $370 BILLION BY 2004 $ Billions
Forecast 1999 0.4 2000 1.0 2001 2.2 2002 4.9 2003 11.0 2004 22.0
B-2-C e-health is expected to reach $22 B by 2004 - - Rx: $15 B - - Neutraceuticals: $3-4 B - - OTC: -$2 B Source: Forrester Research, Inc. (12/99) 15 DELIVERING ON THE VISION: KEY SUCCESS FACTORS [ARROW] PARTNERSHIPS 16 WORLD-CLASS PARTNERSHIPS [Quintiles [IDX(TM) [Medtronic [medibuy.com [CVS [Humana Transnational Logo] Logo] Logo] Logo] Logo] Logo] [Tricare [Coventry [SB [Du Pont(R) [CNN [Covad Logo] Health Care SmithKline Logo] Logo] Logo] Logo] Beecham Logo] [Dell [Tenet [Healtheon(TM)/ [HNC [excite Logo] Logo] WebMD(SM) Software Logo] Logo] Logo] [Lycos Intel(R) [American [UnitedHealthcare(R) Logo] Logo] College of Logo] Cardiology Logo] [Merck-Medco [Beech Street [MedQuist(R) [Microsoft [Healthsouth [Reader's Digest Managed Care, Corporation Logo] Logo] Logo] Logo] L.L.C. Logo] Logo] [Soft Bank [EDS [Lilly [News [Yahoo! [Brown & Logo] Logo] Logo] Corporation Logo] Toland Logo] Medical Group Logo]
17 DELIVERING ON THE VISION: KEY SUCCESS FACTORS [Arrow] CONNECTIVITY 18 CONNECTING AND ENABLING THE END-TO-END VALUE CHAIN Provider Portal Payors [Screen Shot] Data Gateway Applications [arrow connects this Labs to graphic of e-Commerce computer terminals] Transactions [bi-directional [graphic: Consumer Portal arrow connects computer terminals] Pharmacies [Screen Shot] these words to items in the [lines connect this left hand graphic to the items column] in the right hand column] IDNs/ Secure, Hospitals Integrated Transaction Platform Other www.webmd.com Partners (e.g., e- commerce) Content 19 HEALTHEON/WEBMD CONNECTIVITY
PROVIDERS CONSUMERS Physicians 400,000+ Unique visitors 7 MM/month Subscribers 80,000+ Communities 90 Dentists 47,000+ Members 1 MM
HEALTHCARE INDUSTRY Pharmacies 46,000+ Hospitals 4,500+ Payors 900+ Labs Every major lab
20 DELIVERING ON THE VISION: KEY SUCCESS FACTORS [Arrow] CONTENT 21 SIGNIFICANT CONTENT RESOURCES [PHOTO] - Unique, Industry-leading news center: [WebMD Logo] - 100+ editorial staff members, including over 30 MD's - Syndicated content - Scalable outside the US - Authoritative references and texts - Research databases - Directories - Relationships with most authoritative names in medicine 22 DELIVERING ON THE VISION: KEY SUCCESS FACTORS [Arrow] DISTRIBUTION 23 BROAD AND DEEP DISTRIBUTION UTILIZING MULTIPLE CHANNELS [Healtheon(TM)/WebMD(TM), Careinsite, The Medical Manager(R) Logos] Direct Sales [arrows connect these words to the other items] Target customers Channel Partners [InfoCure(TM), medic computer systems, IDX(TM) Logos] On-line Channels [Yahoo!., Lycos, excite, msn(TM) Microsoft(R), CBS SportsLine, MSN NBC Logos] 24 DIRECT SALES FORCE DRIVES PHYSICIAN SALES AND CONNECTIVITY... 100% = 2,900 Direct Sales and Deployment Professionals* Internal Support/Customer Service 65% Physician Practice Sales 20% Institutional Sales 15% - Healthcare Systems - Payors - Labs - Rx - Government
* Includes 1,300 VARs 25 CHANNEL PARTNERS FURTHER DRIVE PHYSICIANS SALES AND CONNECTIVITY [Healtheon(TM)/WebMD(SM) LOGO] PMS SYSTEMS - - Medic - - IDX - - Infocure - - 200+ others IDNs - - TENET - - HealthSouth Health Plans - - UHC Consultants - - Superior - - First Brokers - - Buck - - AOB [dotted lines connect these items to each other and to the Healtheon/WebMD logo] 26 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [WebMD screen shot showing link to MSN health page] 27 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [MSN health page screen shot showing link to Lycos] 28 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [Lycos screen shot showing link to cnn.com] 29 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [cnn.com screen shot showing link to webtv.com] 30 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [webtv.com screen shot showing link to excite.com] 31 EXTENSIVE AND EXCLUSIVE ON-LINE DISTRIBUTION AGGREGATES CONSUMERS [[Excite(SM) Logo] Health Web Page screen shot] 32 DELIVERING ON THE VISION: KEY SUCCESS FACTORS [Arrow] BRAND 33 BUILDING LEADING E-HEALTH BRAND THROUGH UBIQUITY Global Portal [WebMD(SM).com Logo] Network Television [News Corporation Logo] Cable Television [CNN Logo] Print [Reader's Digest Logo] Health Cable Channel [WebMD(SM) Television Logo] Instore [CVS/pharmacy Logo] [The Sports Authority Logo] On-line [Yahoo! Logo] [Lycos Logo] [Excite Logo] [MSN(TM) Microsoft Logo] [CBS Sportsline Logo] [MSN NBC Logo] [dotted lines connect these items to each other and to the WebMD Logo] 34 DRIVING GLOBAL HEALTH THROUGH BRAND AND CONVERGENCE [News Corporation Logo] - Drive awareness of therapeutic categories with mass media - Breast cancer, heart disease, diabetes, depression [WebMD(SM) Television Logo] - Build knowledge of categories with authoritative, compelling programming - Breaking news, WebMD Live, Ask the Experts [WebMD(SM).com Logo] - Drive individual specific knowledge, action with contextual content, communities, and connectivity - Dr. Ornish channel, communities (heart disease) 35 [Video Clip] [Showing WebMD Logo and News Corporation Logo] 36 [The [Healtheon(TM)/ [Careinsite logo] + Medical + WebMD(SM) logo] Manager(R) logo] Overview 37 TRANSACTION OVERVIEW [The [Healtheon(TM) logo/ WebMD(SM) logo] [Careinsite logo] Medical Manager(R) logo] - - Healtheon/WebMD to acquire outstanding primary shares of Medical Manager and CareInsite for 95 million H/W shares -- 1.65 H/W shares for each share of MM (64 MM total) -- 1.30 H/W shares for each share of Ci (31 MM total) - - No cash involved -- combined cash position exceeds $1.5 billion today - - Subject to regulatory and shareholder approval - - Expect to close by mid-year 38 MANAGEMENT AND BOARD Management... - - Mike Long - Co-Chairman and Chief Operating Officer - - Marty Wygod - Co-Chairman - - Jeff Arnold - CEO Healtheon/WebMD - - Mickey Singer - CEO Medical Manager Health Systems Board... - - Three Medical Manager board members to join Healtheon/WebMD 39 COMPLEMENTARY STRENGTHS [Careinsite Logo] [The Medical [Healtheon(TM)/ Manager(R) Logo] WebMD(SM) Logo] - - Clinical applications - Physician installed - Leading consumer - - PMS integration base (185,000)* and physician portals - - NE market presence - Distribution network - Partnerships (Blue Cross of Mass) (2,500 sales force- - Connectivity - - Extensive payer 190 offices)* - Content relationships - Local support - Distribution - - AOL relationship infrastructure - Brand - --------------------- * After giving effect to Medical Manager's pending acquisition of Physician Computer Network 40 KEY BENEFITS OF THE MERGER Physician adoption - - 185,000 physicians* - - Additional 2,500 sales people, 190 offices* - - Installation and utilization support Transaction growth - - Tight integration with PMS - - Part of office work flow Strong payer value proposition - - Payer-specific care management guidelines - - Shared savings approach Product enhancement - - PMS Integration - - Clinical enhancements - - Consumer-physician transactions - - Integration with Cerner systems (1,000 institutions) Execution capabilities - - Top management talent - - Operations expertise - - Local deployment and support - --------------------- * After giving effect to Medical Manager's pending acquisition of Physician Computer Network 41 INTEGRATED PROFESSIONAL PORTAL - - Content - - E-Commerce - - Communications [Screen Shot] - - Practice management transactions - Scheduling - Charge capture and billing - Demographics - Eligibility - Referrals and authorizations - Claims submission/remittance - - Clinical transactions - Patient medical record - Lab orders/results - Prescriptions and renewals www.webmd.com - Payer rules and best practice guidelines - - Connectivity with labs, payers, pharmacies and hospital systems 42 INTEGRATED CONSUMER PORTAL - -Content [Screen Shot] [Screen Shot] - -E-commerce WebMDHealthYourHealthPlan www.webmd.com - -Communications - -Personal health record - -Consumer - physician transactions -Scheduling appt -Bill status -Refill request -Lab results Your Health Plan's co- branded web page - -Consumer - payer transactions @webmd.com -Enrollment/re-enrollment -Benefits coverage, co-pay, deductible inquiries -Physician referral/PCP assignment -Claim status [Screen Shot] Your Physician's co- - -Connectivity with payer, physician, branded web page pharmacy @webmd.com 43 SUCCESS METRICS Timely development [Arrow pointing to right] Domain and and deployment engineering proficiency Growth of consumers, [Arrow pointing to right] Market physicians, and institutions penetration Growth of connectivity, [Arrow pointing to right] page views, and Industry communities adoptions Transaction growth, subscriptions, advertising, [Arrow pointing to right] Revenue growth 44 HEALTHEON/WEBMD: UNIQUE VALUE PROPOSITION - Enormous market opportunity - Leading partnerships - Superior technology and connectivity - Comprehensive content - Extensive and exclusive distribution - Rapidly increasing brand awareness - Diversified, recurring revenue model - Management with history of success 45 [Healtheon(TM) | WebMD(SM) logo] + [onhealth.com logo] Overview 46 TRANSACTION OVERVIEW [Healtheon(TM) | WebMD(SM) logo] [onhealth.com logo] - - Healtheon / WebMD to acquire Onhealth.com for 4.6 million primary shares (accounted for as purchase transaction) - .1894 shares of Healtheon / WebMD for each share of Onhealth - - Subject to regulatory approval - - Expected to close by mid-year 47 COMPLEMENTARY STRENGTHS
[onhealth.com logo] [Healtheon(TM) | WebMD(SM) logo] - - Leading consumer traffic - Leading branded physician with attractive and consumer portals demographics - Leading news, disease and - - Wellness-focused therapy programming and programming and communities community expertise - Over $300 million in - - Over 100 advertisers and e- sponsorship revenue commerce expertise commitments from industry - - Strong, complementary on- leading partnerships line distribution (e.g., Exclusive on-line and off-line Hotmail) distribution - Connectivity across the value chain, enabling physician and consumer services
48 HEALTHEON / WEBMD - ONHEALTH: WHAT IT MEANS [onhealth.com logo] [Healtheon(TM) | WebMD(SM) logo] - - Solidify position as the most trafficked health site for consumers - #1 in health, among top 25 sites overall - 90% of combined audience is unduplicated - 90 communities with over 1,000,000 members - - Accelerate adoption by physicians and consumers of planned healthcare services - Appointment scheduling - Prescription refills - - Increase value to existing and potential partners by connecting them to a larger consumer base 49 TRANSACTION OVERVIEW - Healtheon/WebMD to acquire outstanding primary shares of: - Medical Manager and Care Insite for 95 MM H/W shares - OnHealth.com for 5 Million H/W shares
Combined H/W MM Ci OH Pro-forma --- -- -- -- --------- Primary Shares 237 64 31 5 337 Option/warrants 71 28 15 1 115 --- -- -- -- --- Fully-converted shares 311 92 46 6 452 Ownership of Newco 68% 21% 10% 1% 100%
- No cash involved in MM and Ci transaction -- combined cash position exceeds $1.5 billion 50 Financial Overview 51 SUCCESS METRICS Timely development [Arrow pointing right] Domain and and deployment engineering proficiency Growth of consumers, [Arrow pointing right] Market penetration physicians, and institutions Growth of connectivity, [Arrow pointing right] Industry adoptions page views, and communities Transaction growth, [Arrow pointing right] Revenue growth subscriptions, advertising, and e-commerce 52 PAGE VIEWS PER QUARTER (Millions) 3Q99 47 Million 4Q99 78 Million Jan 2000 (Quarterly Run Rate) 100 Million
53 PROFESSIONAL SUBSCRIPTIONS 3Q99 EOP 43,000 Physicians 55,000 4Q99 EOP 67,000 Physicians 88,000 Jan 31 2000 78,000 Physicians 102,000
54 CONSUMER UTILIZATION (End of period)
3Q-4Q 3Q 99 4Q 99 % Change Jan 2000 - -------------------------------------------------------------------------------------------------- Unique Users 0.7 Mil. 1.7 Mil. +141% 2.2 Mil. Total Page Views 48 78 +63% 100 (In Millions) Community Members 453 704 +55% 855 (In 000s) H/C Communities 46 57 +24% 58 - --------------------------------------------------------------------------------------------------
55 REVENUE BREAKOUT - TREND/TARGET
Through Long-term 3Q99 4Q99 Target ------- ---- --------- Transactions 55% 55% 50% Subscriptions 5% 10% 10% Advertising 5% 13% 20% Other/E-Commerce 35% 22% 20% --- --- --- Total 100% 100% 100% Interest share 29% 35%
56 REVENUE SOURCES FROM PHYSICIAN OFFICES Transactions - Claims - Referrals/Authorizations - Eligibility - Claims Status Inquiry - Reports - Lab Order/Results - Prescriptions Upsale Services - Transcription - Messaging/Receptionist - Fraud and Abuse Audits - DSL connections - Physician Staffing Other Services - Supplies - Travel Services - Investment Transactions 57 PHYSICIAN REVENUE OPPORTUNITIES ($ per physician) Transactions $ 9,000 Subscriptions 350 Upsale Services 3,000 ------- TOTAL $12,350
58 1999 QUARTERLY RESULTS (Millions)
1Q99 2Q99 3Q99 4Q99 ------ ------ ------ ------ Revenues $ 17.6 $ 22.7 $ 28.6 $ 33.2 Cost of operations 15.5 17.9 20.3 34.8 Development and 7.1 7.2 6.6 8.7 engineering Sales and marketing 4.6 5.7 8.3 35.9 General and 4.3 5.2 5.8 12.4 administrative Less noncash charges -- -- -- (9.3) ------ ------ ------ ------ EBITDA $(13.9) $(13.3) $(12.4) $(49.3)
59 4Q 99 REVENUE ($ Millions)
$33 Million $47 Million $55 Million 100 75 50 25 0 As Reported Proforma Proforma 4 Companies 4 Companies plus Closed Deals Kinetra and News Corp
60 INCOME STATEMENT -- TREND/TARGET
Target ------ Revenues 100% Cost of operations 40% Development and engineering 15% Sales and marketing 15-20% General and administrative 5-10% - -------------------------- ------ EBITDA 20-25%
61 HEALTHEON / WEBMD: UNIQUE VALUE PROPOSITION - Enormous market opportunity - Leading partnerships - Superior technology and connectivity - Comprehensive content - Extensive and exclusive distribution - Rapidly increasing brand awareness - Diversified, recurring revenue model - World-class management team and Board of Directors 62 [photo] Connecting the Global Healthcare [photo] [photo] Marketplace [photo] [photo] [Healtheon (TM)/ WebMD (SM) logo] 63 Case Studies Recent Partnerships and New Customers 64 HEALTHEON / WEBMD - ENVOY / QUINTILES: OVERVIEW [ENVOY LOGO] + [QUINTILES LOGO] Acquire Envoy (transaction HLTH to develop and jointly processing business) for: market web-based products - - 35 million HLTH shares and services for pharma - - $400 million cash industry for Quintiles - -$100 million revenues Healtheon / WebMD to for development over receive warrants to purchase next 18 months 10 million common shares at - Revenue sharing for $40 over 4 years new products (begin in mid 2002) 65 HEALTHEON / WEBMD - ENVOY / QUINTILES: OVERVIEW [ENVOY LOGO] + [QUINTILES LOGO] - - Achieve critical mass of connectivity - - Ensure defensible back-end connections - - Ensure quality and security of service - - Attain dramatic transaction revenue growth - - Create strong value proposition to pharma globally 66 HEALTHEON / WEBMD - IDX: OVERVIEW [Healtheon(TM)/WebMD(SM) logo] [IDX(TM) LOGO] - - Exclusive provider of electronic transactions to IDX's 118,000 physicians (transaction revenues) - - Integrate WebMD's content, transactions and e-commerce services into Channel Health portal as co-branded offering - - Jointly develop prescription application (transaction and subscription revenues) - - Equity exchange with Channel Health (stock for stock) worth $18MM for 3% stake 67 HEALTHEON / WEBMD - IDX: OVERVIEW [HEALTHEON(TM)/WebMD(SM) Logo] [IDX (TM) Logo] - Accelerate physician market penetration - Penetrate large group / academic market - Increase value delivered to physicians - Grow transaction revenues 68 HEALTHEON / WEBMD -- CVS: OVERVIEW [Healtheon(TM)/WebMD(SM) LOGO] [CVS/pharmacy LOGO] -- 50+ million transactions/year -- Growth -- WebMD preferred transaction provider -- E-commerce revenues -- Share of all nonprescription sales from CVS sites and WebMD health properties (e.g., Lycos, Excite, MSN) -- Click through fees for all click throughs -- From WebMD health properties -- Regardless of purchase -- Advertising/sponsorships -- 100% on WebMD properties -- Share on CVS co-branded sites -- Mutually exclusive online 69 HEALTHEON/WEBMD - CVS: OVERVIEW [Healtheon(TM)/WebMD(SM) LOGO] [CVS/pharmacy LOGO] - Provide end-to-end Rx service - Drive consumer e-commerce revenues - Drive transaction revenues - Accelerate branding - Improve service and quality of care for consumers 70 HEALTHEON / WEBMD - HUMANA: OVERVIEW [Healtheon(TM) | WebMD(SM) Logo] [Humana(R) Logo] - WebMD to provide transactions, content, portal, and marketing solutions - Professional and consumer transactions (e.g., eligibility, claim status, reimbursement, referrals) - Content through professional and consumer portals - Online and offline media assets - Humana will offer WebMD Practice to its 330,000 physicians - Subscription fees underwritten by WebMD sponsors 71 HEALTHEON / WEBMD -- HUMANA: OVERVIEW [Healtheon(TM) | WebMD(SM) Logo] [Humana(R) Logo] - Accelerate physician-payer connectivity - Drive physician transaction revenues - Accelerate regional market penetration - Enable robust consumer-to-business offering 72 HEALTHEON/WEBMD-KINETRA/EDS/LILLY: OVERVIEW
[Healtheon(TM)/ WebMD(SM) [Kinetra [Lilly [EDS Logo] Logo] Logo] Logo]
Overview: - - Purchase of Kinetra; Strategic Revenue-based Relationships with Eli Lilly and EDS Primary Benefits: - - Connectivity between 50,000 referring physicians and 200 IDNs and Payors - - 50mm clinical transactions annually - - EDS partnership - WebMD Practice is preferred desktop for all EDS' commercial and government healthcare clients plus ASP service for digital health plans - - Eli Lilly partnership -- $60 MM of advertising/sponsorships 73 HEALTHEON/WEBMD-KINETRA/EDS/LILLY: OVERVIEW
[Healtheon(TM)/ WebMD(SM) [Kinetra [Lilly [EDS Logo] Logo] Logo] Logo]
- - Accelerate physician market penetration - - Accelerate IDN penetration - - Expand connectivity to government payers - - Drive transaction revenues - - Drive pharma sponsorship revenues 74 HEALTHEON/WEBMD -- MEDTRONIC: OVERVIEW [Healtheon(TM) | WebMD(SM) LOGO] [MEDTRONIC LOGO] - Medtronic commits $50M to sponsor DTC programs over 4 years -- Create co-branded channels for chronic diseases, including cardiovascular -- Collaborate to create co-branded portal to connect consumers with Medtronics for heart monitoring - Medtronic invests $50M in WebMD Europe 75 HEALTHEON/WEBMD -- MEDTRONIC: OVERVIEW [Healtheon(TM) | WebMD(SM) LOGO] [Medtronic LOGO] - Develop DTC programs for medical device companies - Expand high-quality clinical content - Drive sponsorship revenues - Accelerate entry into International markets 76 WebMD(SM) logo Health Web Page [WebMD Screen Shot] 77 WebMD(SM) logo Practice Web Page Direct from the WebMD(SM) National News Center Web Page [WebMD Screen Shot] 78 Health Teacher with WebMD(SM) logo Web Page [WebMD Screen Shot] 79 WebMD(SM) logo Registered Nurse Web Page [WebMD screen shot] 80 WebMD(SM) logo Practice Web Page [WebMD screen shot] 81 WebMD(SM) logo Practice Web Page [WebMD Screen Shot Showing links to Lilly and Quintiles] 82 WebMD(SM) logo Health Web Page [WebMD Screen Shot Showing Benefit Central page] 83 WebMD(SM) logo Sports & Fitness Store Web Page [WebMD Screen Shot] 84 WebMD(SM) logo Practice Web Page [WebMD Screen Shot Showing Check Eligibility page for payer plans] 85 WebMD(SM) logo Practice Web Page [WebMD Screen Shot Dx-Lab Orders/Results] 86 WebMD(SM) logo Practice Web Page [WebMD Screen Shot New Rx Order] 87 [BAYLOR HEALTH CARE LOGO] WebMD(SM) logo Practice Web Page [WebMD Screen Shot showing Baylor Health Care links to Cardiology, Infectious Diseases, Internal Medicine, Managed Care, Infectious Diseases, Orthopedics, Pediatrics, Pharacotherapy, and Primary Care] 88 CVS(R)/pharmacy logo with WebMD(TM) logo Web Page [WebMD Screen Shot showing links to CVS Pharmacy Counter, Personal Care, Health & Wellness and Vitamins, Minerals and Herbs] 89 El Portal Medical Group WebMD (SM) logo Plastic and Reconstructive Surgery PARTICIPATING PRACTICE Web Page 90 WebMD(SM) logo Practice Web Page [WebMD screen shot Check Eligibility regarding payer plans] 91 WebMD(SM) logo Practice Web Page [WebMD screen shot showing Dx-Lab Orders/Results] 92 WebMD(TM) logo Practice Web Page [WebMD screen shot showing New Rx order] 93 [BAYLOR WebMD(SM) logo Practice Web Page HEALTH CARE LOGO] [WebMD Screen showing Baylor Health Care links to Cardiology, Infectious Diseases, Internal Medicine, Managed Care, Infectious Diseases, Orthopedics, Pediatrics, Pharocotherapy, and Primary Care] 94 CVS/pharmacy logo with WebMD(SM) logo Web Page [Screen shot showing links to CVS Pharmacy Counter, Personal Care, Health & Wellness, and Vitamins, Minerals and Herbs] 95 El Portal Medical WebMD(SM) logo Plastic and Reconstructive Surgery Participating Practice Web Page [Screen Shot] 96 WebMDPractice(SM) logo Web Page [WebMD screen shot showing Direct from the WebMD(SM) National News Center] 97 WebMDHealth(SM) logo Web Page [WebMD screen shot showing News and Events] 98 WebMD(SM) logo Practice Web Page [WebMD screen shot showing Direct from the WebMD(SM) National News Center] 99 WebMD(SM) logo Health Web Page [WebMD screen shot showing News and Events] -----END PRIVACY-ENHANCED MESSAGE-----