To: Jerry S. who wrote (56858 ) 1/5/2000 10:31:00 AM From: JustInTime Read Replies (1) | Respond to of 108040
E*OFFERING INITIATES COVERAGE ON PLANETRX.COM, INC. (PLRX) WITH A STRONG BUY RATING PR NEWSWIRE - January 05, 2000 09:10 SAN FRANCISCO, Jan 5, 2000 /PRNewswire via COMTEX/ -- The following is being issued by E*OFFERING, a member of the National Association of Securities Dealers, CRD Number 036717: E*OFFERING E-Healthcare Analyst Caren Taylor, CFA, today initiated coverage on PlanetRx.com, Inc. (Nasdaq: PLRX) with a STRONG BUY rating and a 12-month price target of $40. "Currently trading at a 54% discount based on our 2001 revenue estimates to its online competitor, drugstore.com, inc. (DSCM $34-1/4), PlanetRx's (PLRX $13) valuation represents an extraordinary bargain and attractive entry point, in our view. We believe that the stock should trade at a comparable valuation to drugstore.com," continues Taylor. "We believe that PlanetRx has a unique, differentiated strategy that supports its leadership position in the $175 billion pharmacy and health products market. We expect the following key metrics to be potential catalysts for the stock price: (1) growth in e-commerce revenues -- particularly growth in prescription sales, (2) increased repeat purchase rates, and (3) additional contracts with PBMs and national and regional payers. "Through its 'hub-and-spoke' model, PlanetRx.com uses its network of 29 fully owned satellite websites to drive traffic to its 'hub,' the PlanetRx.com site. With pharmaceutical companies sponsoring these satellite sites, PLRX not only lowers customer acquisition costs but also increases its return on capital for these valuable properties," states Taylor. PlanetRx.com, Inc. is an online pharmacy that offers more than 28,000 health and beauty shopping products, healthcare information content, and an online community. On July 27th, Taylor released an industry overview titled "The E*Volution of Healthcare." This report identifies and analyzes some of the current issues and trends facing the healthcare industry as a result of the Internet. In addition, Taylor also publishes a weekly newsletter e-Pulse, which offers a perspective on the e-healthcare sector. To read Taylor's report on PlanetRx, "The E*Volution of Healthcare," or the e-Pulse newsletter, please visit the E*OFFERING website at eoffering.com . E*OFFERING, the Internet investment bank funded in part by E*TRADE Group, Inc. (Nasdaq: EGRP) and Sandy Robertson, founder and former CEO of Robertson Stephens & Co., provides full-service investment research and capital markets capabilities to institutional and individual investors. Additional information is available upon request. E*OFFERING is a member NASD/SIPC and maintains a market in the shares of PlanetRx.com, Inc. and has been a managing or co-managing underwriter for or has privately placed securities of PlanetRx.com, Inc. within the past three years. Unless otherwise noted, prices are as of Tuesday, January 4, 2000. SOURCE E*OFFERING (C) 2000 PR Newswire. All rights reserved. prnewswire.com -0- CONTACT: Rich Horn or Jennifer Cross, 415-618-6200, or fax, 415-618-6202, both of E*OFFERING