Hillsboro, Ore. – MedicaLogic Inc., a software provider for the health-care industry, went public December 10, offering 5.9 million shares at $17 apiece. The company’s stock priced above its $14 to $16 filing range.
Underwritten by Donaldson, Lufkin & Jenrette, BancBoston Robertson Stephens, U.S. Bancorp Piper Jaffray and DLJdirect Inc., the initial public offering left 31.4 million shares outstanding.
There were no selling shareholders. Venture backers included Sequoia Funds, New Enterprise Associates, Continental Casualty Co., Enterprise Partners, Quantum Industrial Partners LDC and Soros Fund Management LLC.
Known for its Logician software for medical record keeping, the company is developing a subscription-based Web service that enables physicians to store and administer records over the Internet. MedicaLogic also is developing a Web site where patients can access their records and discuss them with their doctors.
The $91.5 million in proceeds expected from the IPO will be used for working capital and other general corporate purposes.
MedicaLogic has never been profitable, losing $10.8 million in 1997 and $7.2 million in 1998.
Mark Stevens, a general partner at Sequoia, joined the company’s board of directors in 1994, followed a year later by Ronald Taylor, a general partner at Enterprise. David Wroe, a senior vice president and chief technology officer at Continental Casualty, joined the board in 1999, together with Neal Moszkowski, a partner at Soros.
MedicaLogic – Selected Financial
(in thousands, except per share data)
Years Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998* 1999
Total revenue 9,664 12,807 16,160 10,759 13,102
Net loss -10,364 -10,819 -7,232 -6,394 -14,850
Net loss per share -1.64 -1.64 -1.06 -0.95 -1.91