Pharmaceutical portal, Pharma Interactive CGS AB has filed for bankruptcy as the conditions for running the business have radically deteriorated, which in turn, has made any further financing impossible. This is according to one of the principal shareholders, Swedish investor, Nocom, which held a 19% share in the company.
Formerly known as PharmaPoint, the company was founded in 1999 with a view to developing a web-based decision support system for doctors who prescribe medication, promoting, among other things, a module for electronic prescriptions. Nocom and Swedish counterpart IT Provider led the first investment in the company in September 1999.
At the time of the initial investment, IT Provider owned almost half of the company, while Nocom had a 25% holding. Staff owned the remaining shares. There were three investment rounds bringing total commitments to SEK40 million.
In April 2000 the company changed its name to Pharma Interactive Communications and attracted another investor, Menire, which acquired 14.3% of the company for SEK10 million.
However, due to failed negotiations with Apoteket AB, Menire has decided, along with IT Provider and Nocom, not to finance the company further. Menire’s current book value in Pharma Interactive is euro3.1 million.
The booked value of Nocom’s shares in the company at SEK7 million will be written off entirely.
The loss will burden the net financial income for the first quarter of the year. “On Nocom’s part, this means that we will focus our core activity and liquidate this undertaking,” said Tomas Nygren, chief executive officer, Nocom AB.
Sophia Salenius, managing director of Pharma Interactive, said the company was forced to file for bankruptcy because its financial backers did not have the resources to wait for an agreement with the State Pharmacy on electronic prescriptions.
Bankruptcy was filed on April 11, 2001 and the company is in the process of being sold to a private company, the name of which cannot yet be disclosed.
Salenius has high hopes that this new company will wait for an agreement with the State Pharmacy.