BELLEVUE, Wash. – Drugstore.com inc., an on-line pharmacy and information resource, went public July 27, offering 5 million shares at $18 apiece. The stock priced above the company’s $15 to $17 filing range.
Morgan Stanley Dean Witter, Donaldson, Lufkin & Jenrette and Thomas Weisel Partners underwrote the initial public offering, which left 42.35 million shares outstanding.
There were no selling shareholders. Amazon.com Inc., Rite Aid Corp., Kleiner Perkins Caufield & Byers VIII, General Nutrition Investment Co., Vulcan Ventures Inc. and Maveron Equity Partners were venture investors.
Drugstore.com sells health, beauty, wellness, personal care and pharmaceutical items from its Web site. Customers can purchase a wide variety of brand names items and research product information in the privacy of their homes or offices, 24-hours a day.
The $82.7 million earned from the offering will be used for general corporate purposes, including technology and systems upgrades and the establishment of distribution operations.
The company has never been profitable since its inception in April 1998, losing $8 million 1998 and $30.4 million in the six months ended July 4.
Brook Byers and John Doerr, general partners of Kleiner Perkins, joined drugstore.com’s board of directors in May 1998 and November 1998, respectively. Jeffrey Bezos, founder, chairman and chief executive of Amazon.com, joined the board in August 1998, followed in July by William Savoy, president of Vulcan Northwest Inc.
Continuous Software – Selected Financial
(in thousands, except per share data)
Year Ended December 31, Three Months Ended March 31,
1994 1995 1996 1997 1998 1998* 1999*
Total revenue 6,365 13,100 16,099 23,263 27,436 6,810 8,239
Net loss -5,030 -3,411 -6,053 -1,583 -3,866 -649 -239
Net loss per share -4.27 -2.34 -4.06 -1.00 -2.39 -0.40 -0.15