December 13, 2010 13:40 ET

Cegedim: Some Clarification Regarding Alliadis Software

PARIS--(Marketwire - December 13, 2010) - Cegedim, a global technology and services company specializing in the healthcare field, wishes to clarify the following points in the wake of media reports since Friday regarding suspicion of fraud among some French pharmacists.

The suspicions came to light after a pharmacist in Rémoulins fraudulently used a technical module of a pharmacy management software created by Alliadis, 100%-owned subsidiary of Cegedim.

As is standard for the products offered by all pharmacists software publishers, the software has an Administration module that allows users to access the contents of the database containing a record of all transactions. To activate this module, the pharmacist needs an Administrator code that is supplied if the user expressly requests it. This code is the pharmacist's guarantee that only he or she controls access to the database and that, as a result, no other employees are able to access it.

Contrary to what has been reported by certain media outlets, pharmacy management data cannot be corrupted by the use of this technical module. Accounting journals, and notably cash register journals, are not affected. Thus, any auditor or tax controller who examining the journals would be able to detect the slightest discrepancy potentially resulting from an improper use of this technical module.

Alliadis' software products have recently been audited and examined by experts (**).

The expertise showed that the accounting procedures initiated by the software, which is a management program as opposed to an accounting program, are totally traceable.

"It takes more than just software to commit fraud. Someone has to want to commit fraud," explains Jean-Charles Tellier, head of the Pharmacy License Holders section of the Ordre des Pharmaciens National association. "What we are talking about is an isolated case. I would be very surprised if 4,000 pharmacies, or one in five, bought software with the intention of committing fraud". (free translation extracted from Le Figaro - December 11, 2010)

Alliadis has been partnering with pharmacists since pharmacies first started using computers more than 20 years ago. It will be doing everything in its power, working with professional and regulatory bodies, to ensure that the pharmacy profession is not discredited by this incident.

(**) The software has been evaluated by Mr. ZNATY, Expert approved by the French Supreme Court.

Hereunder the conclusions of his expertise:

Free translation:

As a conclusion, I found that:

- The software indeed contains usual traceability tools in case of intervention, even if the customer uses his administrator tool,

- It contains no functionality enabling to suppress the recording of operations in the file "a_f util",

- There is no means in the application to modify the sequential numbering.

This opinion must be taken as a whole; indeed it takes into account the observation of the data processing that I have conducted on the system, the declarations made by individuals I have questioned and the documentation delivered by the company Alliadis (cf. Appendices).

Remaining at your disposal for any additional information that you may wish,

Yours sincerely,

About Cegedim: Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,600 people in more than 80 countries and generated revenue of EUR874 million in 2009. Cegedim SA is listed in Paris (EURONEXT: CGM). To learn more, please

Cegedim: Some clarification regarding Alliadis software:

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Source: CEGEDIM via Thomson Reuters ONE


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