WellPoint, IBM Announce Agreement to Put Watson to Work in Health Care

WellPoint (NYSE:WLP) and IBM (NYSE:IBM) announced an agreement to create the first commercial applications of IBM Watson Technology.

Under the agreement, WellPoint will develop and launch Waston-based solutions to help improve patient care through the delivery of up-to-date, evidence-based healthcare for millions of Americans. IBM will develop the base Watson healthcare technology on which WellPoint's solution will run.

Depending on the progress of the development efforts, WellPoint anticipates enjoying Watson technology in early 2012, working with select physician groups in clinical spots.

Manoj Saxena, general manager, Watson Solutions, IBM Software Group said, "With medical information doubling every five years and health care costs increasing, Watson has tremendous potential for applications that improve the efficiency of care and reduce wait times for diagnosis and treatment by enabling clinicians with access to the best clinical data the moment they need it. WellPoint's commitment to innovation and their work to improve how care is delivered and benefits administered make them an ideal partner for IBM's software and services to pioneer new efficiencies in health care."

WellPoint (NYSE:WLP) has a potential upside of 38.1% based on a current price of $61.81 and an average consensus analyst price target of $85.36.

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