HealthGate IPO joins booming online health market
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By Monica Summers
NEW YORK, July 12 (Reuters) - HealthGate Data Corp., an online healthcare
information provider, may enjoy the same success that other health-related
Internet companies have in the IPO market, analysts said, based on the flood of
people who now seek health information online.
Analyst John Fitzgibbon of Redherring.com, said he expects HealthGate may also
do well in the aftermarket.
"(HealthGate) is on everyone's want list," Fitzgibbon said. "The stock is hot. It
has two magic words: healthcare and Internet."
The company, set to hold its initial public offering this week, said it plans to
provide physicians, healthcare professionals, patients and consumers with better
information for more informed decisions regarding their health.
The Burlington, Mass.-based company is offering 4.6 million shares at a price
range of $10 to $12 a shares. The underwriters are SG Cowen, NationsBanc
Montgomery Securities and Volpe Brown Whelan.
The company has applied to trade on the Nasdaq under the stock symbol .
Millions of people now surf the Web for health information, searching for
everything from cures for the common cold to discount prescription drugs.
Cyber Dialogue Inc., an industry research firm, said in 1998 more than 17 million
Americans searched online for health and medical information, a number which it
estimates will grow to about 33 million.
Healtheon Corp. and drkoop.com have played a major part in the allure of
Internet healthcare companies and have set the standard for the sector. Both
companies debuted in the market with remarkable success.
Fitzgibbon said drkoop.com and HealthGate are among an emerging
classification in the Internet IPO market called e-medical, referring to companies
that are providing healthcar emerging classification in the Internet IPO market
called e-medical, referring to companies that are providing healthcar e
information over the Internet. |
