adam.com Inc. (Nasdaq: ADAM) became the latest beneficiary of the online medical craze Thursday, surging 9 1/8, or 38 percent, to 32 7/8 on the heels of Heatheon's announcement that it would merge with privately held WebMD.
A slew of health-care related stocks enjoyed huge gains in Thursday trading.
Healtheon Corp. (Nasdaq: HLTH) exploded up 40 3/4, or 51 percent, to 121 after the merger was announced. IDX Systems Inc. (Nasdaq: IDXC), which designs software for doctors, gained 2 3/16, or 9 percent, to 26 3/16 and OnHealth Network Co. (Nasdaq: ONHN) picked up 2 3/4, or 19 percent, to 16 15/16.
adam.com, formerly known as A.D.A.M. Software, provides Internet-based health information to consumers and medical professionals.
Earlier this week, adam.com formed a strategic alliance with Cox Interactive Media to feature its health and medical content on local Internet sites in 30 U.S. markets.
Company officials said any advertising sales generated from the co-branded portions of the sites will be shared between the two companies.
"Our mission is to provide useful information that helps busy people manage their lives," said Peter Winter, president of Cox Interactive Media, in a prepared release. "We are confident that our users will find great benefit from having such a wealth of quality healthcare information at their fingertips."
In Adam's latest quarter, it reported sales of $1.1 million, down from $1.8 million in the same quarter a year ago. Losses were 13 cents a share, reversing a profit of 4 cents a share.
Before surging to Thursday's all-time high, the stock was trading at 2 1/8 in October.
There is no First Call consensus estimate for the current quarter.