Health Robotics Announces Termination of its Distribution Contract with McKesson Corporation in North America

Health Robotics today announced that earlier last week, it served proper notice to McKesson of the immediate termination for cause of their exclusive CytoCare distribution and services contract in North America, as well as the termination for cause of their non-exclusive distribution agreement for i.v.STATION and i.v.SOFT within a subset of McKesson Automation's customers.

Health Robotics does not expect this early termination to have a material impact on its overall North American installations given the fact that McKesson's contracts represented less than 10 % of all Health Robotics' contracted installations in the USA and Canada since the companies executed their initial IV Automation agreement in August 2009.

More specifically, i.v.STATION and i.v.SOFT customers should not be disrupted at all by this termination due to the fact that 100% of these installations were contracted for and implemented by non-McKesson Health Robotics' partners and their associates, who will continue to support these i.v.STATION and i.v.SOFT customers without pause.

Until further notice and pending regulatory compliance review, CytoCare customers that have contracts with McKesson Automation should refer their questions about ongoing maintenance and support to McKesson Corporation. Additional non-McKesson CytoCare customers in North America may continue to obtain support from other Health Robotics' channel partners, whose roles may now be expanded as a result of the early termination of the McKesson contract. Health Robotics is committed to quickly reviewing and revamping its channel partner strategy for this complex sector in North America, as well as reaching an agreement with McKesson for the continued support of its customers.
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