DrugMax.com (known as Nutriceuticals.com until the name change is completed) is a new entrant in B2B e-commerce. The company's goal is to become the premier online business-to-business trade exchange for manufacturers, distributors, wholesalers, and retailers in the Pharmaceutical, Over-the-Counter, Health and Beauty, and Natural Product industries. The company's website (http://www.DrugMax.com) will feature auctions, a wholesale marketplace, classified ads, and reverse auctions.
Including its pending acquisition of Becan Distributors, Inc., Nutriceuticals.com's pro forma sales for the year ended March 31, 1999 were $31 million. Sales for the year ending March 31, 2000 are expected to double to $62 million. And for the following year, sales could double once again.
Nutriceuticals.com is about to complete a stock offering which will raise approximately $12 million and give it a Nasdaq listing under the symbol DMAX. The offering price will likely be $10 per share, and it is expected to start trading on Nasdaq on Monday, November 22.
At a price of $10, the company would have a market cap of approximately $60 million. Compared to the billion dollar market caps of B2B stocks such as Chemdex and VerticalNet, Nutriceuticals.com certainly has significant upside potential.
While DMAX is new to B2B e-commerce, it will already have significant sales due to the Becan acquisition. Also because of Becan, the company will have a customer base that can use its B2B services. For many other startup companies, gaining its first customers is a major problem.
At its current price, I think DMAX looks like an interesting investment. I'd like to hear what other people think...
Jeff |
