Epocrates Shares Rise On Higher IPO Pricing

NEW YORK (AP) - Shares of Epocrates Inc. surged in their market debut after the health care technology company priced an initial public offering above its expected range.

Before the opening bell, the San Mateo, Calif., company priced just under 5.4 million shares at $16 apiece - higher than the previously expected range of $13 to $15.

In afternoon trading, shares jumped $4.90, or 30.6 percent, to $20.90.

The company offered just under 3.6 million shares, raising $57.6 million in gross proceeds, while selling shareholders offered just under 1.8 million shares for $28.8 million in gross proceeds. Epocrates will not receive any proceeds from the selling shareholders.

Epocrates, which reported revenue of 93.7 million in 2009, makes mobile drug reference tools used by health care professionals and interactive services for the health care industry. Its products are used to access information including drug dosing, drug interactions, pricing, and insurance coverage information. The company's DocAlert clinical messaging delivers news and alerts including product approvals and clinical study results.

Epocrates has said it expects to use about $28.6 million of the proceeds to pay dividends to the holders of Series B preferred stock. The remainder will be used for general corporate purposes.

Underwriters of the IPO will have the option to buy up to an additional 804,000 shares to cover excess demand. The underwriters include J.P. Morgan, Piper Jaffray, William Blair & Co., and JMP Securities.

Epocrates trades under the ticker "EPOC" on Nasdaq.