FYI:
October 01, 1999 06:01
Get rich quick scheme of the week: Web doctors
Dreaming of an eight-figure net worth but don't have the talent of Tiger Woods or the business savvy of Bill
Gates?
Then here's a plan: Put on a white lab coat, dangle a stethoscope around your neck, and get some face time
with TV cameras. Take a plunge to that final frontier of medicine -- the Internet -- and start dispensing medical
advice.
Already, several high-profile physicians have aimed for the ultimate financial elixir: an IPO. For example, Dr.
Dean Edell, a medical icon with nationally-syndicated TV and radio shows, has 2.6 million shares in
Healthcentral.com, which is still private. Dr. Edell's grinning mug on the site's home page says it all. His
shares, which have risen rapidly with new rounds of funding, are now worth an estimated $12 million. When the
stock goes public -- probably in November -- expect his shares to at least double in value.Former surgeon
general Dr. C. Everett Koop, holds 2.5 million shares of Drkoop.com (Nasdaq: KOOP) stock, currently worth an
estimated $36 million. Viewers must click past the home page of Drkoop.com to find a photo of the good doctor.
It's not hard to understand why he looks less happy than Dr. Edell. Drkoop.com went public in July, quickly
accelerating to $45.75 a share. At least for a few minutes, Dr. Koop's equity peaked at about $118 million.
Dr. Nancy Snyderman, who appears on "Good Morning America" and "20/20", also "flew the koop," -- medical
humor for riding a Web stock to new heights. Without Dr. Snyderman's knowledge, her husband tried to dump
some Drkoop.com stock when it was high. Regulators, who restrict the timing of insider sales, made the
couple pay back the $50,000 gain. She shouldn't worry though. Even at their currently depressed price, her
367,000 shares are worth $5.1 million.
A TOUGH JOB
Wannabes hoping for medical Web stardom should focus on the following: First, they must be skilled at
distilling complex concepts to simple language, such as explaining the difference between malignant and
benign melanoma to a fourth grader. Second, because Web sites typically have pictures, appearance is critical.
If your face is made for radio rather than pictures, a little plastic surgery will do wonders for your marketability.
Third, it helps to be a licensed physician.
With these credentials, hooking up with a Web site shouldn't be hard. Some experts estimate that there are at
least 15,000 medical Web sites. Most of these niche sites will never be well known because they are tied to
obscure medical journals, specific diseases, and wacky individuals.
Even among the handful of sites that are poised for success, several have yet to hire a medical-media
personality. These key sites could use the credibility boost of a sympathetic and unassuming doctor.
For example, Medscape.com (Nasdaq: MSCP) has a great marketing relationship with CBS (NYSE: CBS),
which owns a quarter of the company. If you're looking for second opinions on a malignant tumor, Dan Rather
won't be the first person who comes to mind.
Healtheon-WebMD (Nasdaq: HELTH), another potent medical portal, has the backing of Microsoft but lacks the
firepower of a star figure. Intelihealth.com also could use some star power. It currently has "Ask the Doc," a
column in which specialists dispense medical advice, but the site lacks a focus on a single name. p> Venture
capitalists have pushed gurney-loads of cash to these and many other sites. Many sites are still waiting in line
to swallow the IPO sugar pill. Plenty of cash-hemorrhaging day traders hope that injecting their money into the
likes of Drkoop.com will revive their ailing brokerage accounts.
Red Herring |
