Medscape Nets $17.3 Million Through Private Investors

The new year is already proving profitable for Medscape (formerly Medicalogic/Medscape), which has begun referring to itself as a provider of digital health record technologies (versus EMRs) and online health information. The company has signed a definitive agreement with a group of investors for a $17.3 million capital investment. The financing involves issuing 5.7 million shares of preferred stock at $3 per share, with warrants to purchase 4.4 million shares of common stock at $0.01 per share. The deal coincides with the appointment of Donald Bloodworth as Medscape's chief financial officer.

In related news, Medscape has signed its first digital health agreement, with Glaxo Wellcome. The educational initiative will create asthma-specific sites and disease management tools on medscape.com and cbshealthwatch.com, two Web sites produced by Medscape.