DRKOOP.COM: Ailing Internet Company Receives Second Takeover Bid
Beverly Hills-based Undertherapy.com announced Tuesday that it made an offer to buy the financially-ailing drkoop.com -- marking the second bailout offer in less than a week, the Dallas Morning News reports. Founded in June 1999, Undertherapy.com will offer medical information for health care providers once its site is operational later this year. Although the financial details were not provided, Undertherapy.com Executive Vice President William Miller said his company's offer was "substantive" (Godinez, 7/26). Miller said, "We've come to the table with a slam-dunk offer. We're going to throw tons of money into it right away." While the bid was unsolicited, Miller indicated that the two companies had been in negotiations for "the last couple of months" (Wall Street Journal, 7/25). News of the latest offer sent drkoop.com shares up $.47, closing at $1.94 (Bloomberg News/Los Angeles Times). On Friday, Reston, Va.-based MillenniumHealth Communications Inc. announced its plans to make an offer for the company. The offers come after a rough week for drkoop.com. Last Monday, two top executives resigned following the company's announcement that its second-quarter losses would be heavier than expected. Shareholders slapped the company with a class action lawsuit Thursday, charging that drkoop.com "issued a misleading prospectus before its initial public offering" (Wall Street Journal, 7/25). Drkoop.com officials were unavailable for comment on the takeover bid (Dallas Morning News, 7/26).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.