Hey Mohan: Sometimes it pays off to follow 'the smart money'...
<<PlanetRx.com Closes $50 Million in Equity Funding
Additional funding to launch major branding campaign and to support growth
South San Francisco, Calif. -- June 7, 1999 -- PlanetRx.com (www.planetrx.com), the leading Internet healthcare destination for commerce, content and community, announced today it has closed $50 million in equity funding from strategic and financial investors. Investors include News Corporation (NYSE:NWS), Tenet Healthcare Corporation (NYSE:THC), HealthSouth Corporation (NYSE:HRC), LVMH Group (Nasdaq:LVMHY), Amerindo Technology Fund (Nasdaq:ATCHX), Bowman Capital, and E*Trade Group, Inc. (Nasdaq: EGRP). PlanetRx.com's founding venture capitalists, Benchmark Capital, an original investor in eBay (Nasdaq:EBAY), and Sequoia Capital, an original investor in Yahoo! (Nasdaq: YHOO), have each made additional investments in this round of funding.
The company plans to embark on a major branding and marketing campaign, including TV and radio advertising, and to continue building its infrastructure to support ongoing growth, including the expansion of its distribution center and pharmacy, which the company operates to ensure the highest level of customer care. PlanetRx.com offers an extensive selection of products including prescription and nonprescription products, personal care, vitamins, medical supplies, and cosmetics and fragrances.
"PlanetRx.com aims to empower consumers by bringing them the products, information, and personalized service they need to make better choices about their family's health," said Bill Razzouk, CEO of planetRx.com. "With this round of funding planetRx.com can further its goal to be the most trusted, convenient, and informative healthcare e-commerce destination on the Internet."
"The Internet is exploding in the area of health-related information and products," said Peter Chernin, President and COO of News Corporation. "We recognize planetRx.com as a leading company in the online healthcare and pharmacy space. Their strong management team, innovative business model and unending commitment to the consumer will prove to be their key to continued success. This relationship compliments our online health strategy."
News Corporation is one of the world's largest media companies and operates the Fox Entertainment Group, which recently announced it will launch a health information cable channel, The Health Network, in mid-July.
"HealthSouth has consistently demonstrated a keen understanding of the healthcare industry and a strong vision for its future, and it was very important that we invest in a company that has the same understanding," said Richard M. Scrushy, Chairman of the Board and CEO of HealthSouth Corporation.
HealthSouth Corporation is the nation's leading provider of outpatient surgery and rehabilitative healthcare services, with nearly 1,900 locations in all 50 states, the United Kingdom and Australia.
"We view the increasing demand for online health care services as a logical area of growth for our traditional business, which is meeting the needs of patients at our hospitals," said Jeffrey C. Barbakow, Chairman of the Board and CEO of Tenet Healthcare Corporation. "This investment reflects our belief that meeting the needs of future patients will require online resources such as those provided by planetRx.com."
Tenet Healthcare Corporation owns and operates 130 acute care hospitals and related businesses serving communities in 18 states.
PlanetRx.com can be accessed at www.planetRx.com or through AOL (NYSE:AOL), Yahoo! (Nasdaq:YHOO), Women.com, E*TRADE (Nasdaq:EGRP) and Healthcentral.com.
About PlanetRx.com
PlanetRx.com, Inc. (www.planetrx.com), the leading Internet healthcare destination for commerce, content and community, delivers a convenient, personalized and informed health and beauty shopping experience. With products ranging from prescriptions to personal care items to the latest medical information, planetrx.com gives consumers the ability to manage their own healthcare in a convenient and secure environment. Headquartered in South San Francisco, the company operates its own pharmacy and distribution center in Memphis, TN to ensure the highest quality customer care. PlanetRx.com is a privately held company with original venture funding from Benchmark Capital and Sequoia Capital in September 1998.>>
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The VC firms behind eBay, Ariba, E-Loan, Cisco and Yahoo are behind this venture. I think I'll be looking into some IPO shares <G>. I'm quite sure I read that H&Q is one of the underwriters and that means Schwab should distribute some of the shares. Oh well, we'll see what happens. All I can say for sure is that this company will clearly give drugstore.com a run for their money...!! Nothing like a little healthy competition.
Best Regards,
Scott
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