Athenahealth (ATHN) agrees to acquire clinical information provider Epocrates (EPOC) for ~$293M in cash. ATHN says the acquisition should help provide better information access for health organizations, advance mobile workflows and accelerate awareness and growth across the physician market. EPOC +22.5%, ATHN -0.4% premarket.
Epocrates (EPOC -11.2%) shares slide after the provider of medical information systems for physicians says it will abandon a planned move into electronic health records, and issues cautionary guidance for 2012. Eric Savitz sees EPOC's troubles as a cautionary tale for investors in Yelp and other hot IPOs: "Don’t confuse first day euphoria for an investment strategy."
Drug reference tool provider Epocrates (EPOC) falls 39% after reporting Q2 revenue of $27.9M (+10% Y/Y) and EPS of $0.13 (boosted by a one-time gain), compared with a consensus of $29.6M and $0.07. 2011 revenue guidance of $115M-$120M and EPS guidance of $0.01-$0.10 is below a consensus of $124.4M and $0.40. (PR)