The stock price of point-of-care drug and disease reference vendor Epocrates Inc. fell more than 7 percent in morning trading on Feb. 29 after the company announced mixed financial results and the intent to sell its newly developed electronic health record system.
The San Mateo, Calif.-based company acknowledged that building the EHR has hindered its ability to pursue other ways to expand its portfolio. “As a result, we are exploring strategic alternatives for our EHR offering,” according to a statement. The company noted it needed to focus more “on the natural extension of our core business.”
The company had high hopes for the EHR, as it counts 340,000 physicians on its network. But the product, which is mobile-device friendly, was coming late into a saturated market. A first-phase version of the software was not available until August 2011 and the product did not receive Complete EHR meaningful use certification until February 2012.
Epocrates’ revenue for all of 2011 increased 9 percent to $113.3 million, but the company had a net loss of $3.6 million, compared with net income of $3.8 million in 2010. The company went public on Feb. 2, 2011, at $16 a share, but the stock has sold below its opening price since August.
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