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Cash infusion, 2Q results spark Drugstore.com shares

Drugstore.com shares moved up 1 1/32, or 21 percent, to 5 31/32 Tuesday after it topped analysts' estimates in its second quarter and announced that it had raised $62.7 million in financing through a private placement of non-voting, preferred stock.

The online drug retailer beat the Street estimate in its second quarter despite posting a loss of $42.3 million, or 83 cents a share, on sales of $24.6 million.

First Call Corp. consensus was expecting a loss of 97 cents a share in the quarter.

Company officials said the average price per share in the placement was $4.9375. It said $23 million of the placement will initially take the form of participating, non-voting, preferred stock that will automatically convert into common stock upon shareholder approval.

The placement is being led by Integral Capital Partners. Other investors include Baron Capital and Hearst Communications, a personal investment from John Doerr, as well as participation from certain other existing investors.

Drugstore.com (Nasdaq: DSCM) shares rallied up to a 52-week high of 67 1/2 last August before falling to a low of 4 11/16 in July.

First Call Corp. consensus expects it to lose 97 cents a share in its third quarter and $3.81 a share in the fiscal year.

All nine analysts tracking the stock rate it either a "buy" or "strong buy."