Drugstore.com and Yahoo! Make It Official

For weeks, Drugstore.com has been saying that it has formed a partnership with Yahoo! (Nasdaq: YHOO). On Monday, the companies made an official announcement, and Wall Street was pleased.

Yahoo! provides Drugstore.com with another excellent distribution channel,” said Peter Neupert, CEO of Drugstore.com. “This relationship puts us in front of millions of existing online consumers who will now be able to conveniently shop for a broad selection of personal healthcare products when and where they want.”

Drugstore.com also already has partnerships with Amazon.com, which owns a 46 percent stake of the company, America Online and Excite.

An Overwhelming Launch

Drugstore.com, which offers more than 15,000 personal healthcare products (that’s three times as many as the average drugstore), launched last Thursday — one day after Amazon.com announced its ownership stake. The high-profile launch resulted in a torrent of visitors, and Drugstore.com scrambled to increase capacity because some consumers were unable to access the site. The site was on pace to receive 10 million visitors on opening day before the glitches. The problems apparently have been repaired.

Drugstore.com has an extremely high profile for a fledgling company with good reason. CEO Peter Neupert was a former top Microsoft executive who ran the company’s online content ventures, and Drugstore.com is backed by highly respected venture capital firm Kleiner Perkins, which also funded Amazon.com. Kleiner Perkins also has invested in Excite and the @Home Network.

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