RealTime IT News

drkoop.com Lands New Offer

Undertherapy.com, a provider of medical information for health care service providers, Tuesday became the second company within a week to propose financial rescue of drkoop.com.

Details of the offer were not disclosed. However, Undertherapy.com's offer included the opportunity for drkoop.com to extend its global health care network to health service providers through its proprietary wireless platform and accompanying communication devices.

"By merging the two companies together and by providing the financing necessary to fund Drkoop.com's operations and expansion, the combined entity will be positioned to become the leader in the global healthcare network," said Jack Gray, chief executive officer of Undertherapy.com.

Drkoop.com is in need of financial resuscitation. Since March, the company has cut its workforce by 35 percent and its revenue is expected to drop from last quarter's $4.7 million to $2.5 to $3 million this quarter.

Undertherapy.com is destined to be drkoop.com's savior, according to William Miller, a spokesman for undertherapy.com.

"They either have to cut a deal or go to bankruptcy court," he said. "We have made an unsolicited offer.

"We see drkoop.com as a diamond in the rough," he added. "Our plans include moving the company to the New York City area, tearing up its existing business model and filling its coffers with money. We are truly their White Knight."

The first offer for drkoop.com was delivered Friday by MillenniumHealth Communications. MillenniumHealth Communications presented a letter of intent describing a stock-for-stock transaction and requested a binding no-shop agreement, a $1 million break-up fee and made any transaction subject to material conditions, including due diligence, according to drkoop.com.

At that time, drkoop.com made it clear that the proposal would be considered but stressed that other alternatives were also being considered.

Calls on Tuesday to drkoop.com went unreturned.