Internet retailer of health, beauty and wellness products provider drugstore.com says that it has secured commitments for $62.7 million in private-placement financing. The private placement is led by Integral Capital Partners, and includes other new investors Baron Capital and Hearst Communications, a personal investment from John Doerr, as well as participation from certain other existing investors. Closing of the financing is subject to customary closing conditions, which are expected to be met within one week, says the Bellevue, Wash.-based company.
Meanwhile, the firm says that for its second-quarter 2000, net sales were $24.6 million, an almost sevenfold increase over second-quarter 1999. Pharmaceutical products sales were 53% of total net sales. drugstore.com reported a gross profit of $2.7 million, or 11% of net sales, more than twice the reported gross margin for the first quarter.
It added 232,000 new customers over the previous quarter, while orders from repeat customers increased from 50% of total orders in the first quarter, to 59% of total orders for the second-quarter 2000. The company reported a net loss for the second quarter of $54.7 million, compared to a net loss of $19.8 million from the same period last year, it says.