Filed by Allscripts, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Allscripts, Inc.
Commission File No. 000-26537
On July 13, 2000, Allscripts, Inc., a Delaware corporation, announced its
proposed acquisition of Channelhealth Incorporated, a Delaware corporation. The
following is a slide presentation first presented on July 18, 2000.
Allscripts/ChannelHealth
&
IDX Systems
Creating Clinical & Financial Value for Physicians
@ The Point of Care
================================================================================
Allscripts presenters: Glen Tullman, Dave Mullen, Pam Pure
IDX presenters: Rich Tarrant, Jim Crook, Jack Kane
SLIDE 1
AGENDA
================================================================================
o Transaction Basics
o Vision of the Relationship
o Key Benefits
o Transaction Details
o Financial Implications
o Execution Plan
[LOGO] Allscripts [LOGO] IDX
SLIDE 2
Transaction Basics
================================================================================
o Allscripts acquired ChannelHealth
-Physician Channel includes Internet-based physician productivity tools
-Management team and 90 development, service, and sales employees
NY2:\930877\01\JY9P01!.DOC\13415.0003
o 10-year strategic alliance
-Allscripts becomes exclusive provider of Internet-based clinical
apps.
-IDX sales force markets to their 118,000 physician practice
management customers
-Joint product development and systems integration
o Aggregate consideration of 8.6m Allscripts shares (21.3% on a pro forma,
fully diluted basis)
[LOGO] Allscripts [LOGO] IDX
SLIDE 3
Shared Vision
================================================================================
To create clinical and financial value for physicians,
by providing point-of-care solutions
that improve
decision making, productivity, and patient care.
[LOGO] Allscripts [LOGO] IDX
SLIDE 4
Complementary Products
================================================================================
Allscripts ChannelHealth IDX
---------- ------------- ---
e-Prescribing X
Charge capture X X
Dictation X X
Lab order/results X
Physician portal X
Patient Ed X
e-Detailing X
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[LOGO] Allscripts [LOGO] IDX
SLIDE 5
Complementary Products
================================================================================
Allscripts ChannelHealth IDX
---------- ------------- ---
e-Prescribing TouchScript
Charge capture ChargeWorks PPMS
Dictation MasterChart EDiX
Lab order/results OrderWorks
Physician portal Homebase
Patient Ed Medifor
e-Detailing eDetailing
[LOGO] Allscripts [LOGO] IDX
SLIDE 6
Unique Solution & Value Proposition
================================================================================
Physician adoption will begin with their most common tasks:
Prescription Dictation Billing
TouchScript MasterChart ChargeWorks
| EdiXpress |
V | V
V
[Picture of TouchScript Device]
Clinical & financial value @ the point of care
[LOGO] Allscripts [LOGO] IDX
3
SLIDE 7
Leverage Premier Customer Base
================================================================================
o Well established and respected IDX brand name
-30 year history; 118,000 physicians
o Premier client base
-Duke U. -Johns Hopkins -Stanford
-Montefiore -Kaiser Permanente -Peacehealth
-Scripps Clinic -Sharp Healthcare -Northwestern
o Ideal customers
-more technology ready
-centralized decision making
->60% share of physician practices with more than 75 docs
[LOGO] Allscripts [LOGO] IDX
SLIDE 8
Complementary Relationships
================================================================================
o Physicians
o Pharmaceutical Manufacturers
o Managed Care
o Pharmacy Benefit Managers
o Integrated Delivery Networks
[LOGO] Allscripts [LOGO] IDX
SLIDE 9
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts IDX
- ----------------------------------------------------------------- --------------------------------------------------------------
Extends competitive position in point-of-care clinical Provides competitive advantage through product extension and
solutions for physicians: tangible ROI:
4
[LOGO] Allscripts [LOGO] IDX
SLIDE 10
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts IDX
- ----------------------------------------------------------------- --------------------------------------------------------------
Extends competitive position in point-of-care clinical Provided competitive advantage through product extension and
solutions for physicians: tangible ROI:
o Accelerates distribution
o Enhances point-of-care solutions
o Heightens profile
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 11
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts
- -----------------------------------------------------------------
Extends competitive position in point-of-care clinical o Exclusive access to 118K physicians
solutions for physicians: -60% of large physician practices
o Accelerates distribution -high-volume prescribers
- --------------------------------------------------> o Motivated IDX sales force
-Quota, commission, and options
o Enhances point-of-care solutions
o Heightens profile
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
5
SLIDE 12
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts
- -----------------------------------------------------------------
Extends competitive position in point-of-care clinical o ChannelHealth broadens offerings
solutions for physicians: -Physician Homebase (web portal)
o Accelerates distribution -WebWorks (includes ChartWorks and OrderWorks)
o Enhances point-of-care solutions
- --------------------------------------------------> o Product integration
-solves interface challenges
-creates competitive hurdle
o Heightens profile
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 13
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts
- -----------------------------------------------------------------
Extends competitive position in point-of-care clinical o IDX is a trusted brand name
solutions for physicians: o Enhances positioning with non-IDX physicians
o Accelerates distribution o Access to 118K physicians improves visibility
o Enhances point-of-care solutions with key constituencies
o Heightens profile -Pharmaceuticals
- -------------------------------------------------> -Managed Care
o Improves financial performance and future growth -IDNs
[LOGO] Allscripts [LOGO] IDX
6
SLIDE 14
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts
- -----------------------------------------------------------------
Extends competitive position in point-of-care clinical o Accelerates revenue and gross profit growth rates
solutions for physicians: o Increases profitability level and growth rate
o Accelerates distribution
o Enhances point-of-care solutions
o Heightens profile
o Improves financial performance and future growth
- ------------------------------------------------->
[LOGO] Allscripts [LOGO] IDX
SLIDE 15
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts IDX
- ----------------------------------------------------------------- --------------------------------------------------------------
Extends competitive position in point-of-care clinical Provides competitive advantage through product extension and
solutions for physicians: tangible ROI:
o Accelerates distribution
o Enhances point-of-care solutions
o Heightens profile
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 16
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts IDX
- ----------------------------------------------------------------- --------------------------------------------------------------
Extends competitive position in point-of-care clinical Provides competitive advantage through product extension and
solutions for physicians: tangible ROI:
o Accelerates distribution o Unique clinical value creates pull through for
core IDX products
7
o Enhances point-of-care solutions o Increases focus on patient and eCommerce channels
o Heightens profile o Sharing of upside in new markets
o Improves financial performance and future growth o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 17
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
IDX
--------------------------------------------------------------
o Partnership with premier point-of-care provider Provided competitive advantage through product extension and
creates unique value tangible ROI:
o Speeds time to market o Unique clinical value creates pull through for
o Combined offerings yields significant pull through core IDX products
o Further differentiates IDX and increases competitive <-----------------------------------------------
advantage o Increases focus on patient and eCommerce channels
o Sharing of upside in new markets
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 18
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
IDX
--------------------------------------------------------------
o Focus enables IDX to capitalize on eCommerce and Provided competitive advantage through product extension and
patient channel opportunities tangible ROI:
-Leverage Healtheon relationship o Unique clinical value creates pull through for
-Provide value-added services via core IDX products
physician-patient connectivity o Increases focus on patient and
o Leverage core strengths in financial and eCommerce channels
administrative solutions <-----------------------------------------------
o Sharing of upside in new markets
o Improves financial performance and future growth
8
[LOGO] Allscripts [LOGO] IDX
SLIDE 19
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
IDX
--------------------------------------------------------------
o Revenue sharing creates recurring revenues Provided competitive advantage through product extension and
o Realizes equity value of ChannelHealth with growth tangible ROI:
opportunity of Allscripts stock o Unique clinical value creates pull through for
o Ability to earn additional equity core IDX products
o Increases focus on patient and
eCommerce channels
o Sharing of upside in new markets
<----------------------------------------------
o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 20
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
IDX
--------------------------------------------------------------
o Shared development costs for essential future Provided competitive advantage through product extension and
capabilities tangible ROI:
o Overall reduction of cash investments in 2001 o Unique clinical value creates pull through for
o Accretive to 2001 operating earnings core IDX products
o Increases focus on patient and
eCommerce channels
o Sharing of upside in new markets
o Improves financial performance and
future growth
<----------------------------------------------
9
[LOGO] Allscripts [LOGO] IDX
SLIDE 21
Key Benefits
================================================================================
- ----------------------------------------------------------------- --------------------------------------------------------------
Allscripts IDX
- ----------------------------------------------------------------- --------------------------------------------------------------
Extends competitive position in point-of-care clinical Provided competitive advantage through product extension and
solutions for physicians: tangible ROI:
o Accelerates distribution o Unique clinical value creates pull through for
core IDX products
o Enhances point-of-care solutions o Increases focus on patient and eCommerce channels
o Heightens profile o Sharing of upside in new markets
o Improves financial performance and future growth o Improves financial performance and future growth
[LOGO] Allscripts [LOGO] IDX
SLIDE 22
Transaction Details
================================================================================
o Structure: Allscripts to acquire all outstanding stock of ChannelHealth
business (excl. Patient and eCommerce Channel); accounted as purchase
transaction
o Consideration: 8.6m Allscripts shares, or 21.3% on a pro forma, fully
diluted basis
-Opportunity to earn additional equity
-Stock Rights Agreement
o Management:
-Current Channelhealth management to remain intact at Allscripts
-Richard Tarrant to serve as Non-Executive Vice Chairman
[LOGO] Allscripts [LOGO] IDX
SLIDE 23
Transaction Details
================================================================================
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o Strategic Alliance
-10-year exclusivity and non-compete agreement
-Operational agreement including joint technology development and
co-marketing
o Collaboration Incentives
-Commissions
-Employee Options
-Revenue Sharing
o Timing of Transaction
-Expected close in 4Q2000
[LOGO] Allscripts [LOGO] IDX
SLIDE 24
Financial Impact on Allscripts
================================================================================
o Accelerates revenue and earnings growth
o Differences from ChannelHealth numbers today
-revenues
-expenses
o Dilutive to 2001 cash earnings, but highly accretive in 2002
o Expect profitability in 1Q02
[LOGO] Allscripts [LOGO] IDX
SLIDE 25
Substantial Revenue Growth Opportunity
================================================================================
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART. ON THIS SLIDE, VERTICAL
AXIS STATES "$ MILLIONS", HORIZONTAL AXIS STATES "2000, 2001, 2002, 2003"]
- -------------------------------- ------- ------- ------- -------
2000 2001 2002 2003
- -------------------------------- ------- ------- ------- -------
Pro Forma MDRX + CH + Synergies 0 130 240 430
- -------------------------------- ------- ------- ------- -------
MDRX Stand Alone 54 100 150 250
- -------------------------------- ------- ------- ------- -------
11
CAGR
----
Pro forma MDRX + CH + Synergies ~100%
MDRX Stand Alone ~70%
[LOGO] Allscripts [LOGO] IDX
SLIDE 26
Financial Impact on IDX
================================================================================
o Accelerate sales via revenue sharing on sales of Physician Channel and
other Allscripts offerings
o Improves financial position via shared-development, ChannelHealth sale, and
more rapid time to market
o Equity method of accounting for ownership in Allscripts
o Accretive to 2001E operating earnings
[LOGO] Allscripts [LOGO] IDX
SLIDE 27
Execution Plans
================================================================================
- ------------------- ------------------------------------------------------------
Challenge Initiatives
- ------------------- ------------------------------------------------------------
Align Incentives o Long-term joint marketing and development plans
o Commissions, quotas, and options for sales force
o Revenue sharing for both companies
o Sizable equity position for IDX in Allscripts
Ensure integration o Complete integration of Allscripts and IDX product
suites
o Coordinated annual development plan
Rapid distribution o Coordinated and comprehensive strategy, including
long-term joint sales and marketing agreements
o Products create unique value proposition
o Educate sales, employees, and customers
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[LOGO] Allscripts [LOGO] IDX
SLIDE 28
Summary
================================================================================
o Shared Vision
-To create clinical and financial value for physicians, by providing
point-of-care solutions that improve decision making, productivity,
and patient care.
o Shared Benefits
-complementary products & relationships
-accelerated distribution
-shared upside
-improved financial performance
[LOGO] Allscripts [LOGO] IDX
Allscripts/CH
&
IDX
Creating Clinical & Financial Value for Physicians
@ The Point of Care
DOCUMENTS RELEVANT TO THE ACQUISITION
Allscripts will be filing a registration statement containing a proxy
statement/prospectus and other relevant documents concerning Allscripts'
acquisition of Channelhealth with the United States Securities and Exchange
Commission (the "SEC").
WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT
DOCUMENTS TO BE FILED WITH THE SEC, WHEN THEY BECOME AVAILABLE, BECAUSE THEY
CONTAIN IMPORTANT INFORMATION.
Investors will be able to obtain the documents free of charge at the SEC's web
site, www.sec.gov. In addition, documents filed with the SEC by Allscripts will
be available free of charge by contacting Allscripts Investor Relations, 2401
Commerce Drive, Libertyville, Illinois, 60048, telephone (847) 680-3515. READ
THE PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING A DECISION CONCERNING THE
TRANSACTION.
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This presentation contains forward-looking statements about Allscripts, Inc.
that involve risks and uncertainties. These forward-looking statements are
developed by combining currently available information with Allscripts' beliefs
and assumptions. These statements often contain words like will, believe,
expect, anticipate, intend, contemplate, seek, plan, estimate or similar
expressions. Forward-looking statements do not guarantee future performance.
These statements are made under the protection afforded them by Section 21E of
the Securities Exchange Act of 1934. Because Allscripts cannot predict all of
the risks and uncertainties that may affect it, or control the ones it does
predict, Allscripts' actual results may be materially different from the results
expressed in its forward-looking statements. For a more complete discussion of
the risks, uncertainties and assumptions that may affect Allscripts, see its
Registration Statement on Form S-1 (No. 333-95521), as amended March 7, 2000.
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