RESEARCH TRIANGLE PARK, N.C. - October 9, 2001 - Quintiles Transnational Corp. (Nasdaq: QTRN) intends to file an amended complaint today in U.S. District Court for the Eastern District of North Carolina seeking continued enforcement of its Data Rights Agreement with WebMD (Nasdaq: HLTH) and asserting further claims in its litigation with WebMD that began in February 2001.
Settlement talks between Quintiles and WebMD had been under way since March, when a U.S. federal district court judge ordered WebMD to deliver data to Quintiles. That injunction remains in effect.
Quintiles Transnational Chairman Dennis Gillings, Ph.D., said: "This is a business dispute. I believe WebMD is using privacy as a pretext to avoid their contractual obligations. Our commitment to patient privacy is unsurpassed, as evidenced by Quintiles' 20 years of experience in maintaining confidentiality of health information. There has never been a greater need in the United States for the swift delivery of de-identified, aggregated healthcare data to improve public health."
Gregory Porter, Chief Executive Officer of Quintiles Informatics, said: "This dispute began when WebMD tried to cut off our data after we declined to enter into merger talks with them. We believe WebMD's management wants to get out of the Data Rights Agreement either because it impairs their ability to sell WebMD or because it inhibits WebMD from getting into the healthcare informatics business.
"The issues before the court have not changed since we prevailed in court in March. WebMD now is employing yet another legal team in its attempt to get out of the Data Rights Agreement."
The Data Rights Agreement between Quintiles and WebMD was part of Quintiles' sale of ENVOY Corporation, an electronic data interchange company, to WebMD in May 2000. The Data Rights Agreement requires WebMD to deliver de-identified healthcare claims data to Quintiles.
Pharmaceutical companies, governmental agencies and healthcare organizations rely on Quintiles' de-identified, aggregated informatics data for a variety of purposes, including public health screening; analyzing disease prevalence trends and treatment patterns; identification of disease "clusters" in geographic regions; and drug safety surveillance.
Quintiles Transnational is the world's leading provider of information, technology and services to bring new medicines to patients faster and improve healthcare. Headquartered near Research Triangle Park, North Carolina, Quintiles Transnational is a member of the S&P 500 and Fortune 1000. For more information visit the company's Web site at www.quintiles.com.
Information in this press release contains "forward-looking statements" about Quintiles. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, our ability to complete development and commercialization of new products, the cost and timing of bringing new products to market compared with revenues which may be generated by them, market acceptance, that we might not prevail in court, that our data products business remains subject to contracts and state and federal laws and regulations, and that we continue to rely on compliance from WebMD under the Data Rights Agreement to supply us data. Additional factors that could cause actual results to differ materially, including with respect to data products, are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its S-3 and S-4 Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs.