Medscape Inc. –

NEW YORK – Medscape Inc., an on-line medical information provider, went public September 28, offering 6.75 million shares of stock at $8 apiece. The company’s stock priced in the middle of its $7 to $9 filing range.

Underwritten by Donaldson, Lufkin & Jenrette, Credit Suisse First Boston, Bear, Stearns & Co. Inc., Wit Capital and DLJdirect Inc., the initial public offering left 43.7 million shares of stock outstanding. There were no selling shareholders.

Venture backers included CBS Corp., National Data Corp., Patricof & Co. Ventures Inc., CSK Venture Capital Co. Ltd., Highland Capital Partners Inc., Media Technology Ventures, TBG Information Investors and Weston Presidio Capital.

The company, through its Web site, offers medical information to more than one million physicians, health-care professionals and consumers. The company’s services include information about medical conferences, treatment updates, an on-line journal, a database for continuing medical education programs and an on-line bookstore.

Medscape plans to use the expected $47.7 million generated from the IPO to obtain additional capital, create a public market for its common stock, enhance its ability to acquire other businesses, products or technologies, facilitate future access to public equity markets and to repay debt.

Medscape has never been profitable, losing $3.5 million in 1997 and $3.9 million in 1998.

Alan Patricof, co-chairman at Patricof & Co., is the company’s chairman of the board. Fredric Reynolds, executive vice president and chief financial officer at CBS, Carlo von Schroeter, a general partner at Weston Presidio, and Oakleigh Thorne, chairman and chief executive officer at TBG, are on the company’s board of directors.

Medscape – Selected Financial

(in thousands, except per share data)

Nine Months Ended Year Ended December 31 Six Months Ended June 30

December 31, 1996 1997 1998 1998 1999

Total revenue 1,015 1,522 3,069 1,078 4,930

Net loss -1,344 -3,464 -3,901 -1,326 -5,081

Net loss per share -0.66 -1.26 -1.07 -0.47 -0.71