WebMD Corp. and DuPont Thursday terminated a strategic alliance while
jointly announcing a new endeavor.
Presently the two companies are exploring opportunities for a collaboration
in the food and nutrition area.
As part of the original five-year alliance, which began in March 1999,
DuPont invested $220 million in WebMD to become the exclusive provider of
life-sciences content, such as over-the-counter medicines, food and
nutritional supplements.
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If the agreement had continued, DuPont would have been entitled to share
in revenues generated by WebMD's healthcare portals.
The change in the relationship is due to a restructuring, according to
Martin J. Wygod, CEO, WebMD. "As previously announced, WebMD is reviewing
its strategic relationships in light of several criteria which includes
profitability, strategic relevance and the impact of future new revenue
opportunities available to the company," he said.
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"The termination of our agreement with DuPont is part of this effort," he
concluded. "While we look forward to focusing our joint efforts with DuPont
in the food and nutrition area, we are very pleased to eliminate all
revenue-sharing arrangements and to have enhanced our control over the
development of services for the pharmaceutical industry."
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