Epocrates Files to Go Public
Epocrates Inc., a vendor of software to access drug reference information via mobile computing devices, has filed a registration statement with the Securities and Exchange Commission to sell up to $75 million in a public offering of stock.
The San Mateo, Calif.-based company plans to use proceeds to pay $27.2 million in dividends to preferred Series B stockholders, and for general corporate purposes that could include acquisitions. The company is developing an "affordable" electronic health records system for solo and small physician practices.
Investment firms managing the IPO are J.P. Morgan Securities Inc., Piper Jaffray & Co., William Blair & Company LLC, and JMP Securities LLC. The number of shares to be sold and the expected price range have not been determined.
In a Form S-1 filed with the SEC, Epocrates has applied to list its stock on the NASDAQ Global Market under the ticker symbol EPOC. The company in the filing says it has 1 million users of its software, including 290,000 physicians.
The company was incorporated in 1998. It had net income of $25.7 million on revenue of $65.6 million in 2007, $7.4 million income and $83.3 million revenue in 2008, and $7.7 million income and $93.7 million revenue in 2009.
In the first quarter of 2010, Epocrates had net income of 26,000, compared with $3.3 million income during the same period last year, as revenue fell 1.6 percent to $24.3 million. More information is available at epocrates.com.