Novation

As the name implies, the UltraNova recalls Novation's best-loved synths, the SuperNova and

Create Digital Music 2010

As the name implies, the UltraNova recalls Novation's best-loved synths, the SuperNova and

Novation Returns to Virtual Analog Hardware Legacy with $699 UltraNova 2010

Novation noted that 16 hospitals sent a letter to Medtronic Chief Executive Bill Hawkins stating "extreme disappointment" with the company's move.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

But Novation said its contracts guard against such clauses.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

In this case, Medtronic said it believes the move will ultimately take costs out of the health-care system; the company wouldn't confirm the fees it paid Novation, but Sanford Bernstein analyst Derrick Sung estimated them at $40 million to $60 million.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

Citing expected cost savings, Medtronic has canceled five contracts with Novation LLC, the largest group-purchasing organization, or GPO.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

Medtronic's move entails risks, because it could lose customers to competitors while alienating Novation members, analyst Mr. Sung said.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

Novation said its owners represent $2 billion in annual purchases for Medtronic, which compares with analysts expectations for nearly $16 billion in sales this fiscal year.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

Novation claimed Medtronic's exit will likely raise costs for member hospitals by eliminating price protection.

Medtronic Makes Pact-Ending Move Jon Kamp 2011

Medtronic wouldn't comment about other GPOs but confirmed it canceled the Novation pacts.

Medtronic Makes Pact-Ending Move Jon Kamp 2011