Honeywell And Premier Inc. Collaborate To Expand U.S. Production Of Nitrile Exam Gloves

Rhea-AI Summary

Honeywell and Premier Inc. are partnering to enhance the domestic production of nitrile exam gloves, aiming to produce at least 750 million gloves within the first year. This collaboration addresses ongoing shortages exacerbated by the COVID-19 pandemic, with demand exceeding supply by 40%. Over 80 health systems are committed to purchasing these gloves, ensuring better access for healthcare providers. The financial terms remain undisclosed and are not expected to significantly impact either company's financials.

Positive

• Collaboration expected to produce at least 750 million nitrile exam gloves in the first year.
• Addresses significant shortages in glove supply, improving access for healthcare providers.
• Over 80 health systems have committed to purchasing the gloves, indicating strong market demand.

Negative

• None.

CHARLOTTE, N.C., July 13, 2021 /PRNewswire/ -- Honeywell (NASDAQ: HON) and Premier Inc. (NASDAQ: PINC), a leading technology-driven healthcare improvement company, today announced a new commercial relationship dedicated to expanding the domestic production of nitrile exam gloves. This new collaboration is expected to produce at least 750 million domestically made nitrile exam gloves in the first year alone.

Since the beginning of the COVID-19 pandemic, the supply of exam gloves has been constrained as global demand skyrocketed – exceeding production capacity by nearly 40 percent. Global raw material scarcity, port closures and delays, and increased glove usage as a result of increased hospitalization rates and vaccination efforts have exacerbated ongoing shortages. As a result, Premier member hospitals reported access to exam gloves as one of their greatest product-related challenges to care for patients, with many implementing glove conservation practices and other precautionary measures to protect supply.

"Honeywell and Premier share a commitment to increase the domestic production capacity for safety solutions to help to protect American healthcare workers," said Praveen Reddy, President of Honeywell's personal protective equipment (PPE) business. "Our N95 respirators are protecting millions of healthcare workers, and now we're bringing our technical and supply chain management expertise to support another category of essential PPE. This relationship helps strengthen Honeywell's position as a leading provider of healthcare and medical solutions."

"Guided by data to prioritize greatest-need products at scale, our collaboration with Honeywell is another step forward in Premier's steadfast commitment to protect healthcare providers from shortages, drive supply chain innovation and increase domestic manufacturing of critical products," said Michael J. Alkire, President and CEO of Premier. "Throughout the pandemic, our members stepped up to make strategic investments and purchasing commitments, changing the way we source critical products and improving the reliability of supply for employees and patients."

The collaboration between Premier and Honeywell is expected to expand access to domestically manufactured exam gloves for U.S. hospitals, clinics and other healthcare providers. More than 80 participating Premier member health systems have committed to purchase a certain percentage of the Honeywell gloves for a period of five years. Honeywell will provide additional gloves to S2S Global, Premier's direct sourcing subsidiary, enabling the sale of domestically produced gloves to other health systems and hospitals across the country.

For more than a decade, Premier has been a leader in direct sourcing, working with manufacturers around the globe to produce high-quality products, including those in short supply. This collaboration with Honeywell is part of Premier's long-term strategy to drive U.S. private sector manufacturing innovation and build greater supply chain resiliency – working with members to pursue partnerships with domestic companies that specialize in critical product categories. Honeywell and Premier are also collaborating to expand access to other healthcare PPE and are including these additional items in Premier's product offerings for its members.

Honeywell has a long history of designing and manufacturing head-to-toe safety solutions for workers in challenging environments globally. With decades of experience in the healthcare space, Honeywell offers a broad portfolio of PPE for the hospital environment, including face shields and respiratory protection, and solutions to improve patient outcomes and enhance the performance of critical medical equipment.

The financial terms of the collaboration were not disclosed and are not expected to materially impact either Honeywell or Premier.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

About Premier, Inc.

Premier, Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of more than 4,100 U.S. hospitals and health systems and approximately 200,000 other providers and organizations to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost. Premier plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier's news and investor sites on www.premierinc.com; as well as Twitter, Facebook, LinkedIn, YouTube, Instagram and Premier's blog for more information about the company.

Forward-Looking Statements

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that Honeywell, Premier or their respective management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by Honeywell's and Premier's management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. Each of Honeywell and Premier identify the principal risks and uncertainties that affect their performance in their respective Form 10-Ks and other filings with the Securities and Exchange Commission.

Media Contacts:          
Honeywell – Eric Krantz                                                            
704.780.0493                                                                            
Eric.Krantz@honeywell.com
                                                      
Premier – Noah Zachary
212.901.1251
Public_Relations@premierinc.com 

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SOURCE Honeywell

FAQ

What is the collaboration between Honeywell and Premier Inc. about?

Honeywell and Premier have partnered to expand the domestic production of nitrile exam gloves, targeting at least 750 million gloves in the first year.

How does the glove shortage relate to the COVID-19 pandemic?

The COVID-19 pandemic has driven glove demand up by nearly 40%, leading to significant shortages for healthcare providers.

How many health systems are participating in the Honeywell and Premier collaboration?

Over 80 health systems are committed to purchasing a percentage of the nitrile exam gloves produced through this collaboration.

Will this collaboration materially impact Honeywell or Premier's financials?

The financial terms were not disclosed, and the collaboration is not expected to materially impact either company's financial performance.