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.
